Tailored Brands Inc (NYSE:TLRD) wasn’t looking so smart in pre-market trading after it reported a wider-than-expected and lower sales in the final quarter of 2016.
The Men’s Wearhouse and Jos. A Bank owner made a loss of 62 cents a share in the three months to December 31 2016 as sales dipped to US$793mln, down from US$826mln a year earlier.
Adjusted for one-offs – including a US$14mln charge from its Macy’s tuxedo stores – Tailored Brands lost 19 cents a share, although consensus was for an adjusted loss of 12 cents a share on sales of US$811mln.
The company’s chief executive Doug Ewert blamed a “challenging retail environment” hampered Tailored’s progress at the end of 2016.
In anticipation of similar trends, the group projected earnings for this year of between US$1.45 and US$1.75.
That outlook includes the struggling Macy’s tuxedo business which Tailored Brands estimates will report an operating loss of around US$20mln in 2017.
That particular division failed to ramp up as expected last year, and Ewert said the company was “actively engaged” in discussions with the renowned department store to try and restructure the current agreement.
In pre-market trading on Thursday, shares in Tailored Brands were down 30% to US$23.37.
Story by ProactiveInvestors