Image source: Tailored Brands.
Continue Reading Below
What: Shares of menswear retailer Tailored Brands tumbled on Thursday following the company's first-quarter report. Tailored Brands missed analyst estimates on all fronts as both the Men's Wearhouse and Jos. A. Bank brands reported weak sales. At 12:15 p.m. EDT, the stock was down about 22%.
So what: Tailored Brands reported quarterly revenue of $828.8 million, down 6.4% year over year and about $13 million short of the average analyst estimate. Men's Wearhouse, the company's largest brand, suffered a 3.5% decline in comparable sales. Jos. A. Bank, which was acquired in 2014, posted a 16% comparable sales decline. The company's decision to end the brand's buy-one-get-three-free promotional events last year continues to weigh on sales.
Non-GAAP EPS came in at $0.29, down from $0.54 during the prior-year period and $0.16 lower the analysts expected. GAAP EPS was just $0.03, with the discrepancy due to various items like severance, consulting fees, and store closure costs.
Despite the weak results, Tailored Brands maintained its earnings guidance for the full year. It stated that performance has improved in May, with Men's Wearhouse posting comparable sales growth. The company expects full-year non-GAAP EPS between $1.55 and $1.85.
Now what: Tailored Brands CEO Doug Ewert pointed to the progress the company has made. "Importantly, we are making progress on our transition plan for Tailored Brands. We are executing on our profit improvement program, organizational realignment, store base rationalization, and cost reductions. 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."
Continue Reading Below
Shares of Tailored Brands have tumbled due to the disastrous acquisition of Jos. A. Bank. Following the decline on Thursday, the stock is down nearly 80% over the past year. The company has its hands full trying to fix the Jos. A. Bank brand, and investors don't seem very confident that it will succeed.
The article Why Tailored Brands Stock Crashed Today originally appeared on Fool.com.
Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.