Tailored Brands (TLRD 16.45, -6.92) has plunged 29.6% in pre-market action, responding to disappointing results and weak guidance.
The apparel conglomerate reported a below-consensus fourth quarter loss of $0.19 per share on a 4.0% year-over-year decline in revenue to $793 million, which was also shy of expectations.
Tailored Brands operates through four retail segments, and all four saw year-over-year declines in net sales while three of four saw year-over-year declines in comparable sales.
Net sales at Men's Wearhouse declined 3.7% year-over-year to $384.60 million, making up 48.5% of total sales. Comparable sales declined 2.2% year-over-year after increasing 4.3% one year ago. Net sales at Jos. A. Bank fell 4.7% to $219.40 million, which accounted for 27.7% of total fourth quarter sales. Jos. A. Bank comparable sales increased 3.6% year-over-year, but this followed a 32.3% year-over-year decline one year ago.
Net sales at K&G declined 3.7% year-over-year to $77.90 million, representing 9.8% of total sales. K&G comparable sales fell 5.2% year-over-year after increasing 1.9% one year ago. Net sales at Moores fell 2.1% to $48.30 million, representing 6.1% of total sales. Comparable sales decreased 5.4% after falling 2.7% one year ago.
In the Corporate Apparel segment, net sales declined 4.8% year-over-year to $55.00 million. This segment accounted for 6.9% of total fourth quarter revenue.
Tailored Brands' management blamed a soft retail environment for the disappointing report. Store traffic was noticeably weak, leading to lower than expected sales. The company is in the process of restricting its Jos. A. Bank brand, having already closed 233 locations. Cost savings have exceeded $60 million, but weak traffic across company stores has overshadowed these efforts.
The company expects to face continued challenges, evidenced by below-consensus guidance for the fiscal year. Tailored Brands expects full year earnings between $1.45 and $1.75 per share, which is well below current market expectations. The company's outlook assumes that Men's Wearhouse comparable sales will be down in the low single digits while Jos. A. Bank comparable sales are expected to increase in the mid-single digits. Comparable sales at Moores and K&G are expected to show a mid-single digit decline.
Editor's Note: the original comment has been corrected to account for the distinction between net sales and comparable sales performances at each segment