Tailored Brands Inc (NYSE: TLRD) stock crashed over 25% in the pre-market session on December 13th, 2018 (Source: Google finance) after the company reported third-quarter sales below expectations and trimmed its outlook for fiscal 2018.
TLRD in the third quarter of FY 18 has reported the adjusted earnings per share of $1.01, beating the analysts’ estimates for the adjusted earnings per share of 94 cents. The company had reported the adjusted revenue growth of 0.2 percent to $813 million in the third quarter of FY 18, missing the analysts’ estimates for revenue of $819 million. The sales growth was driven primarily by custom suiting, which the company sold at an average rate of $5 million per week, up 150% versus last year. The company has reported 2.3% positive comparable sales in the third quarter, with all retail brands delivering positive comparable sales. Retail net sales increased 0.6% primarily due to an increase in retail clothing sales. Corporate apparel net sales decreased 3.6%, or $2.3 million, primarily due to lower sales in the United Kingdom (“UK”) associated with uncertainty surrounding Brexit, as well as the impact of a weaker British pound this year. The Company now expects corporate apparel net sales to decrease by a mid-single-digit percentage in fiscal 2018, primarily due to continued soft trends in the UK business, versus previous guidance of a low-single-digit percentage decrease.
Moreover, Men’s Wearhouse comparable sales increased 1.7%. Comparable sales for clothing increased primarily due to an increase in average unit retail partially offset by a decrease in both units per transaction and transactions. Comparable rental services revenue decreased 0.6%, primarily reflecting the trend to purchase suits for special occasions partially offset by the impact of more weddings in the third quarter. The Company expects to report comparable rental services revenue in the fourth quarter of up low-single-digits versus last year and still expects to report a mid-single-digit decrease in rental services revenue for fiscal 2018. Jos. A. Bank comparable sales increased 3.8% primarily due to an increase in both transactions and average unit retail, partially offset by a decrease in units per transaction. K&G comparable sales increased 4.0% due to increases in transactions, units per transaction and average unit retail. Moores comparable sales increased 1.2% primarily due to an increase in transactions partially offset by a decrease in units per transaction, while average unit retail was flat.
Tailored said it expects earnings per share between $2.30 and $2.35 for the year, versus a previous range between $2.35 a share and $2.50 a share.