Tailored Brands (TLRD 11.38, +0.16) is up 1.4% after reporting mixed results for the first quarter and reaffirming its guidance.
The apparel conglomerate reported above-consensus first quarter earnings of $0.27 per share on a 5.5% year-over-year decline in revenue to $782.90 million, which was shy of expectations.
The decline in total revenue was due to lower comparable sales at most brands, which was partially associated with store closures. Men's Wearhouse comparable sales fell 3.1% due to lower transactions, which were partially offset by an increase in average unit retail. Units per transaction were little changed. Comparable rental services revenue fell 0.9%. Men's Wearhouse net revenue declined 4.9% year-over-year to $420.10 million.
Glancing at other brands, comparable sales at K&G declined 7.4% while K&G net sales fell 6.4% to $88.70 million. Lower transactions were partially offset by higher units per transaction and higher average unit retail.
Comparable sales at Moores decreased 5.3% while net sales declined 5.6% to $40.80 million. Decreases in average unit retail and transactions led to the drop while units per transaction were flat.
Jos. A. Bank bucked the trend, recording a 3.5% comparable sales increase, driven by higher transactions that offset a decrease in average unit retail. Units per transaction were little changed. However, Jos. A. Bank net sales were down 6.3%, declining to $167.20 million. Corporate Apparel sales dropped 8.0% to $57.60 million.
Adjusted retail gross margin increased by 30 basis points to 43.9%.
The company reaffirmed its guidance for the full fiscal year, expecting earnings between $1.60 per share and $1.90 per share. The company still expects that comparable sales at Men's Wearhouse will be down in the low single digits. Sales at Jos. A. Bank are expected to see a mid-single digit increase, while sales at Moores and K&G are expected to show a mid-single digit decline.
It is worth noting that Tailored Brands said it expects to close 20 stores after previously guiding for ten closures. The additional closures will affect the Jos. A. Bank brand.