Tailored Brands, Inc. Reports Fiscal 2017 Fourth Quarter And Year End Results

"In 2018, we remain focused on executing three key growth strategies: expand our custom business and make buying a custom suit as easy and affordable as buying a suit off the rack, strengthen our brands and grow market share by communicating the quality selection and service we provide at a great value, and enhance our omni-channel experience by combining the high-touch service we offer in our stores with the convenience of online shopping." 

Sale of MW Cleaners

Today, the Company also announced the sale of its MW Cleaners business for approximately $18 million, as part of the Company's strategy to focus on its core businesses and unlock cash flow.  In the fourth quarter of 2017, the Company recorded a goodwill impairment charge for MW Cleaners of $1.5 million. 

Fourth Quarter Fiscal 2017 Results

Net Sales

Total net sales increased 8.4% to $859.9 million, including a $45.7 million benefit from the 53^rd week. Retail net sales increased 6.6% primarily due to an increase in retail segment comparable sales of 2.5% and a $40.7 million benefit from the 53^rd week.  Corporate apparel net sales increased 32.2%, primarily due to the rollout of new uniform programs in the U.S. and U.K., a $5.0 million benefit from the 53^rd week and the impact of a stronger British pound this year compared to last year.

Comparable Sales

Men's Wearhouse comparable sales increased 2.3%. Comparable sales for clothing increased primarily due to an increase in transactions, partially offset by a decrease in units per transaction, while average unit retail was flat. Comparable rental services revenue increased 2.1%, primarily reflecting an increase in rental units.  

Jos. A. Bank comparable sales increased 5.3% primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail. 

K&G comparable sales decreased 1.7% primarily due to lower transactions partially offset by an increase in units per transaction, while average unit retail was flat. 

Moores comparable sales decreased 1.4% primarily due to a decrease in average unit retail partially offset by an increase in transactions, while units per transaction were flat.

Gross Margin

On a GAAP basis, consolidated gross margin was $320.9 million, an increase of $18.8 million, primarily due to the increase in net sales.  As a percent of sales, consolidated gross margin decreased 80 basis points to 37.3%.  On an adjusted basis, consolidated gross margin decreased 80 basis points, primarily due to a decrease in retail gross margin rate.

On a GAAP basis, retail gross margin was $302.2 million, an increase of $14.6 million.  As a percent of sales, retail gross margin decreased 60 basis points to 38.4%.  On an adjusted basis, retail gross margin increased $14.1 million while the retail gross margin rate decreased 60 basis points primarily due to higher procurement and distribution costs as a percent of sales, somewhat offset by lower occupancy costs as a percent of sales.

Advertising Expense

Advertising expense increased $1.2 million to $52.6 million but decreased 40 basis points as a percent of sales to 6.1%.  The increase in advertising expense was driven primarily by a shift in timing of marketing spend from the third quarter. 

Selling, General and Administrative Expenses ("SG&A")

On a GAAP basis, SG&A decreased $1.7 million to $252.8 million and decreased 270 basis points as a percent of sales.  On an adjusted basis, SG&A increased $10.9 million, primarily due to the impact of the 53^rd week and increased incentive compensation expense, partially offset by lower employee-related benefit costs. As a percent of sales, adjusted SG&A decreased 110 basis points to 29.4%.

Operating Income

On a GAAP basis, operating income was $13.3 million compared to an operating loss of $18.9 million last year.  On an adjusted basis, operating income was $14.8 million compared to $9.3 million last year.  As a percent of sales, adjusted operating margin increased 50 basis points to 1.7%.

Net Interest Expense and Net Loss on Extinguishment of Debt

Net interest expense was $25.0 million compared to $25.2 million last year.  The decrease in interest expense was due to reducing our outstanding debt but was mostly offset by the impact of the 53^rd week.  Net loss on extinguishment of debt was $1.1 million primarily related to the write-off of deferred financing costs resulting from the Company's voluntary $40.0 million prepayment on its Term Loan and the Company's repurchase of senior notes.

Effective Tax Rate

On a GAAP basis, the effective tax rate was a benefit of 96.1% compared to a benefit of 31.8% last year.  Our GAAP effective tax rate includes one-time items including a favorable tax resolution offset by a change in our position on permanently reinvested foreign earnings and other impacts of the recently enacted Tax Cuts and Jobs Act of 2017.  On an adjusted basis, the effective tax rate was 99.3% compared to 42.3% last year.  Both the GAAP and the adjusted effective tax rate reflect a benefit related to a change in the full year effective tax rate from 33% to 29%, primarily driven by discrete tax items, tax credits, and reductions in state income tax items including reversal of valuation allowances and uncertain tax positions.

Net Loss and EPS

On a GAAP basis, net loss was $0.5 million compared to a net loss of $30.1 million last year.  GAAP diluted loss per share was $0.01 compared to a diluted loss per share of $0.62 last year.  On an adjusted basis, fourth quarter 2017 net loss was $0.1 million compared to a net loss of $9.2 million last year.  Adjusted diluted loss per share was $0.00, compared to an adjusted loss per share of $0.19 last year.  As a reminder, this year's fourth quarter contained 14 weeks while last year's fourth quarter contained 13 weeks.  The Company estimates the impact of the extra week in 2017 was $0.05 per diluted share.

Fiscal Year 2017 Results

Full Year Net Sales Summary – Fiscal 2017
	Net Sales (U.S. dollars, in millions)	% Total Sales Change	Comparable Sales Change(1)
Retail	$3,053.0	-1.5%	0.1%
Men's Wearhouse	$1,742.7	-1.6%	-1.1%
Jos. A. Bank	$735.1	-2.0%	5.4%
K&G	$324.0	-1.8%	-3.1%
Moores(2)	$216.4	0.9%	-2.0% Werbung Mehr Nachrichten zur Tailored Brands Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 23.04.24 - dpa-AFX Sparkurs zeigt Wirkung: UPS schneidet nicht so schlecht ab wie befürchtet 23.04.24 - PR Newswire BlackRock Sustainable American Income Trust Plc - Transaction in Own Shares 23.04.24 - PR Newswire Ashtead Group Plc - Transaction in Own Shares Der KI-Boom ist vorbei!    Aber dieser heiße Sektor verspricht, weiter zu wachsen... weiterlesen» Anzeige wo-site-teaser-box-16737_site-teaser-box_2024-04-23_09%253A00%253A00_2024-04-24_09%253A00%253A59