Tailored Brands, Inc. Reports Fiscal 2016 Third Quarter And Nine Month Results

FREMONT, Calif., Dec. 7, 2016

Third quarter 2016 GAAP diluted earnings per share ("EPS") were $0.58, compared to a loss of $0.56 in the same period a year ago.  Third quarter 2016 adjusted diluted EPS⁽¹⁾ was $0.68 excluding certain items⁽¹⁾, compared to adjusted diluted EPS of $0.50 in the third quarter of 2015.

"Our improved profitability this quarter reflects solid progress on our cost reduction initiatives as we continue to navigate the turnaround of Jos. A. Bank and a choppy retail environment," said Doug Ewert, president and chief executive officer of Tailored Brands.

"Men's Wearhouse's 0.1% comparable sales increase reflects the softening traffic trend we initially saw after Father's Day, which has continued," said Ewert.  "While the retail environment remains challenging, we are pleased with the response to premium clothing, custom clothing and performance wear, including the recently launched Kenneth Cole AWEAR-TECH.  We plan to drive greater awareness of these innovative offerings and view them as significant growth drivers in 2017.  In addition, we continued to strengthen our omnichannel capabilities during the third quarter, which we believe will help drive additional traffic as we make it easy for customers to shop with us both online and in-store. 

"Our Jos. A. Bank turnaround is gaining traction.  We are pleased to report a better-than-expected comparable sales decline of 9.8% in the third quarter, particularly since we were up against last year's final "Buy-One-Get-Three Free" event in October.  While there is still work to be done, we are encouraged by the healthier trends we are seeing at Jos. A. Bank that reflect our investments in elevating the brand and customer experience through marketing, merchandising and a more engaging sales experience. 

"Based on our third quarter results and our outlook for the balance of the year, we are updating full year 2016 adjusted EPS expectations to $1.70 to $1.85 per diluted share from our previous range of $1.55 to $1.85 per diluted share.  Our updated full year guidance reflects our expectation for Jos. A. Bank comparable sales to be up mid-to-high-single-digits and Men's Wearhouse comparable sales to be down slightly in the fourth quarter. 

"We are on track to achieve our targeted $50 million of cost savings in fiscal 2016.  In addition, we continue to make progress on our store base rationalization initiative.  During the third quarter, we closed 83 stores, including 74 Men's Wearhouse and Tux stores, bringing our total year-to-date closures to 187 stores.  We expect to close approximately 63 stores in the fourth quarter for a total of approximately 250 store closures during fiscal 2016," said Ewert.