UPDATE: Tailored Brands (TLRD) Tops Q1 EPS by 2c, FY EPS Guidance Misses Views at Mid-Point
Tailored Brands (NYSE: TLRD) reported Q1 EPS of $0.50, $0.02 better than the analyst estimate of $0.48. Revenue for the quarter came in at $818 million versus the consensus estimate of $794.05 million.
Q1 2018 retail segment comparable sales up 2.1%
Comparable Sales
Men's Wearhouse comparable sales increased 3.2%. Comparable sales for clothing increased primarily due to an increase in transactions, partially offset by a decrease in units per transaction, while average unit retail was flat. Comparable rental services revenue decreased 3.9%, primarily reflecting a continued shift to purchase suits for special occasions that more than offset the benefit of an earlier prom season.
Jos. A. Bank comparable sales increased 1.2% primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail.
K&G comparable sales decreased 1.7% primarily due to lower transactions and a decrease in average unit retail partially offset by an increase in units per transaction.
Moores comparable sales increased 1.8% primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail.
FISCAL 2018 FULL YEAR OUTLOOK
The Company reaffirmed its outlook for fiscal 2018 as follows:
- Earnings per Share: The Company expects to achieve adjusted diluted EPS in the range of $2.35 to $2.50.
- Comparable Sales: The Company expects comparable sales for Men's Wearhouse and Jos. A. Bank to be positive low-single-digits, Moores comparable sales to be flat-to-up slightly and K&G comparable sales to be flat-to-down slightly.
- Effective Tax Rate: The Company expects the effective tax rate to be approximately 25%.
- Inventory: The Company expects to reduce inventories by a high-single-digit percentage.
- Capital Expenditures: The Company expects capital expenditures of approximately $100 million.
- Depreciation and Amortization: The Company expects depreciation and amortization of approximately $100 million.
- Real Estate: The Company expects approximately net 10 store closures in 2018 resulting from its continuous review of its real estate portfolio for opportunities to optimize its fleet as lease terms expire.
(Street sees FY EPS of $2.49)
For earnings history and earnings-related data on Tailored Brands (TLRD) click here.