Declining Sales at All Divisions Sink Tailored Brands’ Q1 Results

The woes continued at Tailored Brands in the first quarter.
On Wednesday, the Fremont, Calif.-based retailer reported net income for the quarter fell to $ 7.1 million, or 14 cents a diluted share, from $ 13.9 million, or 27 cents, a year earlier. Results for the most-recent quarter included $ 4.4 million in restructuring charges to pay severance and terminate leases.
Adjusted earnings per share fell to 21 cents from 50 cents a year earlier.
Sales for the three months ended May 4, decreased 4.5 percent to $ 781.4 million from $ 818 million. On a comparable-store basis, sales also declined at each division, falling 4.5 percent at the flagship Men’s Wearhouse, 0.7 percent at Jos. A. Bank, 4.6 percent at Moores in Canada and 0.5 percent at K&G. Sales at the corporate apparel division dropped the most, posting a 10.1 percent decline in the period.
The company attributed much of the soft showing to fewer transactions and units per transactions, and cited lower clothing sales at Men’s Wearhouse in particular.
Investors were already on guard and sent shares of the company down 6.1 percent in regular trading Wednesday only to go further after the results came out, pushing the stock down another 6 percent to $ 5.54 after hours.
Dinesh Lathi,

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