Tailored Brands (TLRD) Misses Q1 EPS by 16c, Affirms FY EPS Guidance
Tailored Brands (NYSE: TLRD) reported Q1 EPS of $0.29, $0.16 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $828.8 million versus the consensus estimate of $842.03 million.
Doug Ewert, Tailored Brands president and chief executive officer stated, "Our first quarter results were mixed as we navigated the difficult consumer and retail environment and cycled a strong performance in last year's first quarter. While our net sales decline of 6.4% was slightly below our expectation, our focus on lowering operating expenses brought operating income and earnings per share in-line with our plan for the quarter. Men's Wearhouse reported a modestly below-plan comparable sales decline of 3.5% while our Jos. A. Bank comparable sales decline of 16% was better than our expectation, despite anniversarying significant Buy-One-Get-Three Free events in the same period last year. On a GAAP basis, retail operating income decreased $15.4 million. On an adjusted basis, retail operating income decreased $18.2 million driven by an $18.1 million reduction at Jos. A. Bank. The decline in Jos. A. Bank results was slightly better than the expectations we previously outlined for 2016.
"Importantly, we are making progress on our transition plan for Tailored Brands. We are executing on our profit improvement program, organizational realignment, store base rationalization, and cost reductions. We remain committed to stabilizing, resizing, and rebuilding the foundation of the Jos. A. Bank business to a base from which we can profitably grow on a go-forward basis.
"Lastly, I am pleased that business seems to be improving in the second quarter, as evidenced by our May comps. In May, Men's Wearhouse posted a comparable sales increase in the mid-single-digit range and Jos. A. Bank and Moores also saw improving trends. Accordingly, we continue to expect our 2016 annual adjusted EPS to be in the range of $1.55 to $1.85," stated Ewert.
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