Tailored Brands (TLRD 25.67, -7.78) has slumped 23.3% after the company's better than expected results were overshadowed by weaker than expected comparable sales growth.
The apparel conglomerate reported above-consensus first quarter earnings of $0.50 per share on a 4.5% year-over-year increase in revenue to $818 million, which was also ahead of market estimates. However, total comparable sales increased 2.1%, which was below expectations for growth of 2.4%.
Looking at the segment breakdown, comparable sales at Men's Wearhouse increased 3.2% while total sales grew 6.6% to $447.80 million. Clothing sales growth was fueled by increased transactions, though units per transaction declined. Average unit retail was unchanged. Rental services revenue fell 3.9% due to a shift toward more purchases.
Comparable sales at Jos. A. Bank grew 1.2% while total sales increased 1.1% to $169.10 million. A higher number of transactions and units per transaction was partially offset by lower average unit retail.
Comparable sales at K&G declined 1.7% while total sales increased 0.7% to $89.30 million. Lower transactions and a decline in average unit retail were partially offset by higher units per transaction.
Comparable sales at Moores grew 1.8% while total sales jumped 13.0% to $46.10 million. The growth was fueled by higher number of transactions and units per transaction, which outweighed a decrease in average unit retail.
Going forward, the company reaffirmed its guidance for fiscal year earnings between $2.35 per share and $2.50 per share. Comparable sales growth at Men's Wearhouse and Jos. A. Bank is expected to be in the low-single digits while comparable sales are Moores are expected to be flat or up slightly. Comparable sales at K&G are expected to be flat or down slightly.