Tailored Brands Q2 FY17 net sales drop 6.5%

Second quarter 2017 GAAP diluted earnings per share (EPS) were $1.19, which included $0.05 per share from a net gain on extinguishment of debt, compared to GAAP diluted EPS of $0.51, or adjusted diluted EPS of $0.99, for the second quarter last year. There were no adjusted items for the second quarter of 2017. 

On a GAAP basis, total gross margin was $396.7 million for the second quarter of 2017, a decrease of $13.6 million for the second quarter of 2016, primarily due to a decrease in corporate apparel net sales. As a percentage of sales, total gross margin increased to 46.6 per cent.

"We were pleased that all brands posted sequential improvement in comparable sales on a one- and two-year stacked basis during the second quarter, which resulted in positive comparable sales for our retail segment as a whole. That said, the retail environment remains challenging and therefore we have a cautious outlook for the second half of the year," Tailored Brands chief executive officer Doug Ewert said.

On a GAAP basis, selling, general and administrative expenses decreased $57.4 million to $248.3 million while the operating income was recorded at $108.5 million compared to $59.6 million last year.

"We are executing our plan to innovate the best men's specialty retailer of the future. Our custom suit business continues to grow and exemplifies our unique ability to deliver exclusivity, personalisation and fit at unsurpassed value and convenience. We are advancing our omni-channel capabilities with new services such as guided shopping, which makes it easy for men to find the perfect look. In addition, we are reaching our customers across all channels to let them know what we stand for – helping men love how they look," Ewert added.

For fiscal 2017, the company expects to achieve GAAP diluted EPS in the range of $1.42 to $1.62, and adjusted diluted EPS of $1.65 to $1.85.

"We remain focused on operational excellence and fiscal discipline. Our rationalised store footprint and more efficient expense structure enable us to generate strong cash flow that we are deploying towards capital investment, dividend payment and debt reduction," concluded Ewert. (RR)

Fibre2Fashion News Desk – India