Tailored Brands (TLRD) Tops Q4 EPS by 1c, Revenues Miss; Offer Q1 EPS Guidance Below Consensus

Tailored Brands (NYSE: TLRD) reported Q4 EPS of ($0.28), $0.01 better than the analyst estimate of ($0.29). Revenue for the quarter came in at $785.76 million versus the consensus estimate of $788.7 million.

“In fiscal 2018, we delivered positive retail comps of 1.2%, with all brands positive, and we reported full year adjusted EPS of $2.31, consistent with the revised guidance we provided in January. We significantly strengthened our balance sheet, reducing our total debt by $232 million and extending the maturity on our term loan to 2025, and we generated strong operating cash flow of $323 million,” said Tailored Brands Executive Chairman Dinesh Lathi.

“While all of our retail brands delivered positive comps for the full year, during the fourth quarter, comps at Men’s Wearhouse and Jos. A. Bank were down and this trend has continued into the first quarter of 2019. We attribute the current softness to both the macro-environment as well as the need for us to execute more quickly and effectively on our core growth strategies: deliver personalized products and services, create inspiring and seamless experiences in and across every channel, and build brands that stand for something more than just price. Our teams are intently focused on delivering against these objectives in fiscal 2019 as we look to build long-term sustainable value creation for our stakeholders.”

GUIDANCE:

Tailored Brands sees Q1 2019 EPS of $0.10-$0.15, versus the consensus of $0.51.

• Comparable Sales: The Company expects comparable sales for:
  • Men’s Wearhouse to be down 3% to 5%
  • Jos. A. Bank to be down 3% to 5%
  • Moores to be down 5% to 7%
  • K&G to be flat to up 2%.
• Corporate Apparel Sales: The Company expects corporate apparel net sales to be down 10% to 12%.
• Effective Tax Rate: The Company estimates a tax rate in the range of 30% to 33% primarily as a result of an increase in tax expense related to the accounting for employee share-based awards.
• Real Estate: The Company expects to close three Jos. A. Bank stores.

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

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