Tailored Brands (TLRD 28.29, +4.35, +18.17%) jumped 11.5% in
pre-market and extended those gains during the morning session after reporting
in-line earnings, reaffirming its guidance, and boosting comparable sales
guidance for two of its smaller brands.
The apparel company reported in-line second quarter earnings of $1.07/share on a 3.3% year/year decline in revenue to $823.4 mln, which was a bit below expectations.
Going forward, the company expects that earnings for the fiscal year will be between $2.35/share and $2.50/share. Comparable sales for Men's Wearhouse and Jos. A. Bank are expected to show low single-digit increases while the outlook for comparable sales at Moores and K&G was increased. Comparable sales at Moores are expected to be up in the low single digits after previous guidance called for slight growth at best. Comparable sales at K&G are expected to be flat or up slightly, up from the previous outlook for a slight decline.
Returning to second quarter results, the company saw lower total sales at most of its units, but comparable sales increased across the board. The decline in net sales was mostly due to lower rental service revenue resulting from an earlier prom season and a shift in demand for weddings to the third quarter. The losses were offset by higher retail clothing sales.
Men's Wearhouse net sales fell 3.0% to $445.2 mln, but comparable sales grew 1.0%. Higher transactions and slightly higher average unit retail prices were partially offset by fewer units per transaction. Comparable rental service revenue fell 11.5%.
Jos. A. Bank net sales fell 1.1% to $172.4 mln while comparable sales increased 2.0%. The increase in comparable sales was owed to higher transactions while average unit retail prices were flat.
K&G net sales declined 2.5% to $83.6 mln while comparable sales grew 3.5%. Higher units per transaction and higher unit retail prices were partially offset by a slight decline in transactions.
Moores net sales grew 2.0% to $66.6 mln while comparable sales increased 3.7% due to a larger number of transactions and higher average unit prices. Units per transaction were unchanged.
Corporate Apparel net sales fell 3.9% to $55.5 mln due to lower sales in the U.K., which were partially offset by a stronger British pound.
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