Tailored Brands Inc. on Wednesday reported a first-quarter profit after the equity markets closed the day’s trading session, but missed Wall Street’s estimates for the quarter.
Formerly known as The Men’s Wearhouse, the company said net earnings for the quarter ended April 30 were down 84.2 percent to $1.6 million, or 3 cents a diluted share, from $10.4 million, or 21 cents, a year ago. Total net sales fell 6.4 percent to $828.8 million from $885.1 million.
Retail sales of apparel declined 7.7 percent to $615.7 million from $666.9 million. The balance of income was from rental and alteration services and sales of corporate apparel. On an adjusted basis, diluted earnings per share for the quarter were 29 cents. Wall Street was expecting 45 cents on sales of $842 million.
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Doug Ewert, president and chief executive officer, said the quarter’s results were mixed as the company “navigated the difficult consumer and retail environment and cycled a strong performance in last year’s first quarter.”
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He said that Men’s Wearhouse posted a modestly below-plan comparable sales decline of 3.5 percent while Jos. A. Bank comps fell 16 percent.
Ewert noted that the company is making progress on its transition plan. “We remain committed to stabilizing, resizing and rebuilding the foundation of the Jos. A. Bank business to a base from which we can profitably grow on a go-forward basis,” he said.
The ceo added that trends were improving – based on May comps – for its Men’s Wearhouse, Jos. A. Bank and Moores Clothing for Men businesses.
Shares of Tailored Brands closed up 1 percent to $15.53, but then fell 4 percent to $14.92 in aftermarket trading following its first quarter earnings report.
The company will host a conference call for Wall Street analysts Thursday morning.