Men's Wearhouse Parent Tailored Brands Shares Tank On Wider-than-expected Quarterly Loss
Tailored Brands Inc. shares fell more than 22% Wednesday after the parent of Men's Wearhouse, Jos. A. Bank and other apparel retailers reported a wider-than-expected loss and lower sales in the fourth quarter. Tailored Brands said it lost 62 cents a share in the three-month period, compared with a loss of $21.86 a share in the same period a year ago. Sales reached $793.3 million in the quarter, down from $826 million a year ago. The company's fourth-quarter GAAP operating loss included a $14 million charge related to fixed assets in its Macy's tuxedo stores. Adjusted for one-time items, the company lost 19 cents a share, compared with 30 cents a share in the fourth quarter of 2015. Analysts polled by FactSet had expected an adjusted loss of 12 cents a share on sales of $811 million in the quarter. A "challenging retail environment resulted in soft traffic across our retail brands," CEO Doug Ewert said in a statement. In anticipation of similar trends, Tailored Brands projected earnings between $1.45 a share to $1.75 a share for fiscal 2017. The outlook includes an estimated operating loss of $19 million to $20 million from the Macy's tuxedo business, which did not ramp in 2016 as the company expected. "We are actively engaged in discussions with Macy's to restructure our agreement. Due to the early stages of our negotiations, our current 2017 plan assumes no further Macy's store expansion," and a restructured agreement with the department store "will involve a different operating model," Tailored Brands said. Shares of the company ended the regular trading day up 1.1%.
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