Tailored Brands (TLRD) reported earnings on Wed 8 March 17 (a/h)

** charts before earnings **

 

** charts after earnings **

 

Tailored Brands misses by $0.06, misses on revs; guides FY18 EPS below consensus; in negotiations to restructure Macy's (M) tuxedo agreement, which hasn't ramped :

• Reports Q4 (Jan) loss of $0.19 per share, excluding non-recurring items, $0.06 worse than the Capital IQ Consensus of ($0.13); revenues fell 4.0% year/year to $793 mln vs the $811.36 mln Capital IQ Consensus. Comps -1.2%
  • MW comps -2.2% vs down slightly guidance
  • JAB comps +3.6% vs. mid-to high single digits guidance
• Co issues downside guidance for FY18, sees EPS of $1.45-1.75, excluding non-recurring items, vs. $2.10 Capital IQ Consensus Estimate... outlook assumes Men's Wearhouse comparable sales down low-single digits, Jos. A. Bank comparable sales up mid-single digits, and Moores and K&G comparable sales down mid-single-digits in 2017. Outlook for 2017 also assumes a decline in Corporate Apparel business as co laps the large airline uniform program we rolled out in 2016."
• "Unfortunately, the challenging retail environment resulted in soft traffic across our retail brands, which drove lower than anticipated fourth quarter and full year net sales and gross margins."
• "Our 2017 plan includes reinvestment of some of the cost savings we achieved to support our omni-channel strategies. The demand for convenience, a more personalized experience and casual wardrobe options has never been more pronounced. In response, we are accelerating our efforts to translate our high-service, in-store experience online and to drive additional traffic to our stores. "In addition, our outlook includes an estimated operating loss of between $19 million and $20 million from the Macy's tuxedo business. During 2016, our Macy's tuxedo business did not ramp as 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 that adjusted operating losses grow from $14 million in 2016 to between $19 million to $20 million in 2017 under the terms of the current agreement. Given current and forecasted results, and the likelihood that a restructured agreement will involve a different operating model, we recorded an asset impairment charge of $14 million in the fourth quarter related to fixed assets in the Macy's stores."