Tanger Factory Outlet Centers (SKT) Misses Q2 EPS by 22c, Revenues Miss

Tanger Factory Outlet Centers (NYSE: SKT) reported Q2 EPS of ($0.25), $0.22 worse than the analyst estimate of ($0.03). Revenue for the quarter came in at $63.99 million versus the consensus estimate of $99.78 million.

"We continue to recover from the government-mandated store closures that started in mid-March. Almost all stores have now reopened and our cash flow was positive in July. Tanger's liquidity position remains strong, with cash on hand and line of credit capacity totaling more than half a billion dollars at the end of July," said Steven B. Tanger, Chief Executive Officer. "In light of changing consumer behavior, we have implemented new offerings including Tanger Virtual ShopperTM and curbside pick-up programs. We believe these innovations will become durable components of our business going forward. We are pleased to see shoppers return to our centers, with traffic rebounding to approximately 85% of prior year levels over the last six weeks."

"Rent collections were substantially better for July than for the second quarter given our proactive rent deferral strategy to address COVID-19 related store closures. However, there is continued uncertainty around the magnitude and duration of the pandemic and subsequent tenant financial challenges. Recapturing space from underperforming tenants presents challenges, but also provides a unique opportunity to elevate our tenant mix. We are encouraged by the new tenants we have recently added, including several upscale or first-in-portfolio brands."

"We believe the outlet distribution channel continues to be critically important for many retailers. We have the advantage of open-air properties that provide an inviting place to shop, and tenants enjoy a relatively low cost of occupancy," Mr. Tanger added.

For earnings history and earnings-related data on Tanger Factory Outlet Centers (SKT) click here.

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