Tailored Brands, a leading US-based specialty retailer of menswear, has posted net sales of $810.8 million for the third quarter of fiscal 2017, down 4.3% compared to the same quarter in previous year. Retail net sales decreased 2.1% due to the impact of last year’s store closures, with retail segment comparable sales up 0.1%.
Third quarter 2017 GAAP diluted earnings per share (EPS) were $0.75, which included $0.03 per share from a net gain on extinguishment of debt, compared to GAAP diluted EPS of $0.58, or adjusted diluted EPS of $0.71, for the third quarter last year, which includes $0.03 /share from a net gain on extinguishment of debt.
On a GAAP basis, total gross margin was $358.8 million, a decrease of $18.4 million, primarily due to a decrease in corporate apparel net sales. As a percent of sales, total gross margin decreased to 44.2%.
“While we still have more work to do, we are pleased with the progress in our business in the third quarter. We posted positive comparable sales at Jos. A. Bank and sequential comparable sales improvement at Men’s Wearhouse and K&G, resulting in our second consecutive quarter of positive comparable sales for our retail segment. Based on solid third quarter results and a good start to the fourth quarter, we have increased our EPS outlook for the year,” said Tailored Brands CEO Doug Ewert.
“We also continued to make progress toward strengthening our balance sheet. During the third quarter, we repurchased and retired $65 million face value of senior notes, resulting in year-to-date repurchases of $115 million. We remain committed to a balanced capital allocation strategy, investing to support our growth initiatives, returning cash to shareholders via our dividend and using excess free cash flow to reduce debt,” Ewert added,
For fiscal 2017, the company continues to expect comparable sales for Men’s Wearhouse and Moores to be down low-single digits and comparable sales for Jos. A. Bank to increase mid-single digits. The company now expects comparable sales for K&G to be down low-single digits.
“Our new marketing campaigns are building awareness about the solutions we provide to men of all shapes and sizes. We’re bringing new customers into our stores where we win with superior service and selection, including custom suiting at a disruptive price. We are encouraged by the progress we are making on our strategic initiatives to grow our custom business and enhance our online and in-store omni-channel capabilities. These initiatives are part of our strategy to deliver a superior customer experience in order to increase market share and drive long-term sustainable growth,” said Ewert.