Tailored Brands Q1 GAAP diluted EPS $0.27Staff Writer | June 14, 2018
Tailored Brands announced consolidated financial results for the fiscal first quarter ended May 5, 2018.
Tailored Brands Total net sales increased 4.5% to $818.0 million
First quarter 2018 results include $11.9 million of non-cash charges related to the April 2018 refinancing of the company's term loan, primarily consisting of the write-off of deferred financing costs and original issue discount, and a $3.6 million non-cash loss upon closing the previously announced divestiture of the MW Cleaners business.
Total net sales increased 4.5% to $818.0 million. Retail net sales increased 4.1% primarily due to the benefit from the 53-week to 52-week calendar shift and an earlier Easter, as well as the increase in retail segment comparable sales of 2.1%.
Corporate apparel net sales increased 9.6%, or $5.5 million, almost entirely due to the impact of a stronger British pound this year compared to last year.
Men's Wearhouse comparable sales increased 3.2%. 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 decreased 3.9%, primarily reflecting a continued shift to purchase suits for special occasions that more than offset the benefit of an earlier prom season.
Jos. A. Bank comparable sales increased 1.2% 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 and a decrease in average unit retail partially offset by an increase in units per transaction.
Moores comparable sales increased 1.8% primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail.
On a GAAP basis, consolidated gross margin was $345.2 million, an increase of $12.8 million, primarily due to the increase in net sales. As a percent of sales, consolidated gross margin decreased 30 basis points to 42.2%.
On an adjusted basis, consolidated gross margin decreased 40 basis points, primarily due to a decrease in retail gross margin rate.
On a GAAP basis, retail gross margin was $328.8 million, an increase of $12.1 million.
As a percent of sales, retail gross margin decreased 10 basis points to 43.6%.
On an adjusted basis, retail gross margin increased $10.7 million while the retail gross margin rate decreased 30 basis points primarily due to increased promotional activities, mostly offset by lower occupancy costs as a percent of sales. ■