Custom sales at Tailored Brands double in Q2

"We are pleased to report positive comparable sales for all of our retail brands this quarter.  I am also pleased with the progress we are making to move to a leaner, more efficient inventory model, which is particularly important as custom clothing becomes a larger percentage of our mix.  With leaner inventories, we can improve the customer experience and free-up working capital." said Tailored Brands CEO Doug Ewert. 

On a Gaap basis, consolidated gross margin of the US-based company was $368.9 million, a decrease of $27.8 million, primarily due to the decrease in net sales.  As a percent of sales, consolidated gross margin decreased 180 basis points to 44.8 per cent. On an adjusted basis, consolidated gross margin decreased 130 basis points, primarily due to a decrease in retail segment gross margin rate.

Second quarter Gaap results include charges of $8.1 million related to the partial redemption of $175 million of the company's senior notes, $4.4 million related to the closure of a rental product distribution center, and $0.2 million. Of the $12.7 million total charges, $6.3 million were non-cash.

"We continue to strengthen our balance sheet.  During the quarter, we completed a $175 million partial redemption of our senior notes and our total debt is down $325 million versus a year ago." Ewert added,

Cash and cash equivalents at the end of the second quarter of 2018 were $68.2 million, a decrease of $44.5 million compared to the end of the second quarter of 2017, primarily due to the use of cash on hand to fund a portion of the $175 million partial redemption of senior notes.  At the end of the second quarter of 2018, there were $104.5 million of borrowings outstanding on our revolving credit facility, which was used to fund the remaining portion of the senior notes redemption.  

Fibre2Fashion News Desk – India