Tailored Brands (TLRD) Reports Q3 EPS of $1.01, Revenues Miss; Lowers FY18 EPS Guidance

Tailored Brands (NYSE: TLRD) reported Q3 EPS of $1.01, versus $0.00 reported last year. Revenue for the quarter came in at $812.7 million versus the consensus estimate of $829.15 million.

• Q3 2018 retail segment comparable sales up 2.3% with all brands positive
• Q3 2018 GAAP diluted EPS of $0.27 and adjusted diluted EPS(1) of $1.01
• Q3 2018 custom sales averaged $5 million per week, up 150% year-over-year
• Total debt reduced by $40 million in Q3 2018; down $300 million year-over-year
• Company updates outlook for FY 2018 adjusted diluted EPS to $2.30 to $2.35

“We reported 2.3% positive comparable sales in the third quarter, with all retail brands delivering positive comparable sales. Our sales growth was driven primarily by custom suiting, which we sold at an average rate of $5 million per week, up 150% versus last year,” said Tailored Brands Executive Chairman Dinesh Lathi. “I am pleased with the team’s execution on our custom growth strategy. During the quarter, we improved our custom offering’s speed, selection and service, making custom even more compelling to consumers.

“That said, as the third quarter progressed we saw a softening of comparable sales due to lower transactions at Men’s Wearhouse and that trend continued into November. As a result, we have taken a more cautious outlook on fourth quarter comparable sales for Men’s Wearhouse and now expect fiscal 2018 adjusted diluted EPS of $2.30 to $2.35.”

Lathi added, “We also executed our strategies to reduce inventories and debt to improve capital efficiency and strengthen our balance sheet. During the quarter, we reduced inventories 10% versus last year. We also successfully repriced our term loan, reducing the interest rate spread by 25 basis points, which lowers our annual cash interest expense by more than $2 million. Our total debt is down approximately $300 million versus a year ago.”

GUIDANCE:

Tailored Brands sees FY2018 EPS of $2.30-$2.35.

For earnings history and earnings-related data on Tailored Brands (TLRD) click here.

You May Also Be Interested In

• Lumexa Imaging Holdings, Inc. (LMRI) Reports In-Line Q2 EPS; Offers Guidance
• EquipmentShare.com Inc. (EQPT) Reports Q2 EPS of $0.18; Offers Guidance
• Gaxos.ai Inc. (GXAI) Reports Q2 EPS of $0.02