FREMONT, Calif., Dec. 7, 2016 /PRNewswire/ -- Tailored
Brands, Inc. (NYSE: TLRD) today announced consolidated financial
results for the fiscal third quarter ended October 29, 2016.
Third quarter 2016 GAAP diluted earnings per share ("EPS") were
$0.58, compared to a loss of
$0.56 in the same period a year
ago. Third quarter 2016 adjusted diluted EPS(1)
was $0.68 excluding certain
items(1), compared to adjusted diluted EPS of
$0.50 in the third quarter of
2015.
"Our improved profitability this quarter reflects solid progress
on our cost reduction initiatives as we continue to navigate the
turnaround of Jos. A. Bank and a choppy retail environment," said
Doug Ewert, president and chief
executive officer of Tailored Brands.
"Men's Wearhouse's 0.1% comparable sales increase reflects the
softening traffic trend we initially saw after Father's Day, which has continued," said
Ewert. "While the retail environment remains challenging, we
are pleased with the response to premium clothing, custom clothing
and performance wear, including the recently launched Kenneth Cole
AWEAR-TECH. We plan to drive greater awareness of these
innovative offerings and view them as significant growth drivers in
2017. In addition, we continued to strengthen our omnichannel
capabilities during the third quarter, which we believe will help
drive additional traffic as we make it easy for customers to shop
with us both online and in-store.
"Our Jos. A. Bank turnaround is gaining traction. We are
pleased to report a better-than-expected comparable sales decline
of 9.8% in the third quarter, particularly since we were up against
last year's final "Buy-One-Get-Three Free" event in October.
While there is still work to be done, we are encouraged by the
healthier trends we are seeing at Jos. A. Bank that reflect our
investments in elevating the brand and customer experience through
marketing, merchandising and a more engaging sales
experience.
"Based on our third quarter results and our outlook for the
balance of the year, we are updating full year 2016 adjusted EPS
expectations to $1.70 to $1.85 per
diluted share from our previous range of $1.55 to $1.85 per diluted share. Our
updated full year guidance reflects our expectation for Jos. A.
Bank comparable sales to be up mid-to-high-single-digits and Men's
Wearhouse comparable sales to be down slightly in the fourth
quarter.
"We are on track to achieve our targeted $50 million of cost savings in fiscal 2016.
In addition, we continue to make progress on our store base
rationalization initiative. During the third quarter, we
closed 83 stores, including 74 Men's Wearhouse and Tux stores,
bringing our total year-to-date closures to 187 stores. We
expect to close approximately 63 stores in the fourth quarter for a
total of approximately 250 store closures during fiscal 2016," said
Ewert.
(1)
|
See Use of Non-GAAP
Financial Measures for additional information. Non-GAAP
adjusted EPS is referred to as "adjusted EPS" for
simplicity.
|
SALES REVIEW
The table that follows is a summary of total net sales for the
third quarter and year-to-date period ended October 29, 2016. The dollars shown are
U.S. dollars in millions and, due to rounded numbers, may not
sum. Comparable sales exclude the net sales of a store for
any month of one period if the store was not owned or open
throughout the same month of the prior period and include
e-commerce net sales. The Moores comparable sales change is
based on the Canadian dollar. In addition, Jos. A. Bank
comparable sales exclude sales from factory stores as these stores
were running clearance sales in preparation for closing.
Fiscal 2015 comparable sales shown below for Jos. A. Bank are
based on a comparison to Jos. A. Bank's fiscal 2014 sales, a
portion of which was prior to the acquisition on June 18, 2014.
|
Third Quarter Net
Sales Summary – Fiscal 2016
|
|
|
Net
Sales
|
Comparable
Sales
Change
|
|
Net Sales
Change
|
Current
Quarter
|
% of Total
Sales
|
Current
Quarter
|
Prior
Year
Quarter
|
|
|
|
|
|
|
Retail
Segment
|
(4.7%)
|
($37.7)
|
$763.7
|
90.2%
|
|
|
Men's
Wearhouse
|
(0.8%)
|
($3.6)
|
$461.8
|
54.5%
|
0.1%
|
5.3%
|
Jos. A.
Bank
|
(16.6%)
|
($32.9)
|
$166.0
|
19.6%
|
(9.8%)
|
(14.4%)
|
K&G
|
(2.6%)
|
($1.9)
|
$70.9
|
8.4%
|
(3.0%)
|
3.7%
|
Moores
|
1.2%
|
$0.7
|
$56.5
|
6.7%
|
(0.4%)
|
(5.4%)
|
MW
Cleaners
|
0.4%
|
$0.0
|
$8.5
|
1.0%
|
|
|
|
|
|
|
|
|
|
Corporate Apparel
Segment
|
30.0%
|
$19.2
|
$83.2
|
9.8%
|
|
|
|
|
|
|
|
|
|
Total
Company
|
(2.1%)
|
($18.5)
|
$846.9
|
|
|
|
|
|
|
Year-To-Date Net
Sales Summary – Fiscal 2016
|
|
|
Net
Sales
|
Comparable
Sales
Change
|
|
Net Sales
Change
|
Current
Year
|
% of Total
Sales
|
Current
Year
|
Prior
Year
|
|
|
|
|
|
|
Retail
Segment
|
(5.0%)
|
($124.5)
|
$2,360.1
|
91.3%
|
|
|
Men's
Wearhouse
|
(0.4%)
|
($5.4)
|
$1,386.3
|
53.6%
|
(0.1%)
|
5.0%
|
Jos. A.
Bank
|
(16.7%)
|
($106.2)
|
$530.5
|
20.5%
|
(14.2%)
|
(8.3%)
|
K&G
|
(2.1%)
|
($5.4)
|
$252.0
|
9.8%
|
(1.5%)
|
6.0%
|
Moores
|
(4.1%)
|
($7.1)
|
$166.2
|
6.4%
|
(1.8%)
|
(1.4%)
|
MW
Cleaners
|
(1.1%)
|
($0.3)
|
$25.1
|
1.0%
|
|
|
|
|
|
|
|
|
|
Corporate Apparel
Segment
|
21.1%
|
$39.3
|
$225.3
|
8.7%
|
|
|
|
|
|
|
|
|
|
Total
Company
|
(3.2%)
|
($85.2)
|
$2,585.4
|
|
|
|
Net sales for the third quarter at our largest brand, Men's
Wearhouse, decreased 0.8% while comparable sales increased 0.1%
from last year's third quarter. The slight increase in
comparable sales resulted primarily from higher rental services
revenue while comparable sales for clothing decreased primarily due
to decreases in both average transactions per store and units sold
per transaction partially offset by an increase in average unit
retails (net selling prices). Comparable rental services
revenue increased 4.9% in the third quarter of 2016.
Jos. A. Bank comparable sales for the third quarter decreased
9.8% primarily due to decreases in both average transactions per
store and average unit retails partially offset by higher units
sold per transaction and higher rental services revenue.
K&G comparable sales decreased 3.0% primarily due to lower
average transactions per store partially offset by an increase in
average unit retails and units sold per transaction.
Net sales for Moores, our Canadian retail brand, increased 1.2%
primarily due to the impact of new stores. Moores had a
comparable sales decrease of 0.4% due to a decrease in average
transactions per store driven by weak macro-economic conditions in
Canada, partially offset by an
increase in average unit retails with units per transaction
essentially flat.
The Corporate Apparel segment had a sales increase of 30.0%
primarily driven by the rollout of a large new uniform program.
THIRD QUARTER GAAP RESULTS
Below is a comparison table and discussion of the condensed
consolidated third quarter FY 2016 to third quarter FY 2015
operating results.
Consolidated Third
Quarter FY 2016 Comparison to Third Quarter FY 2015 Operating
Results
|
|
Q3
FY16
|
Q3
FY16
|
Q3
FY15
|
Q3
FY15
|
Variance
|
|
$
|
% of
Sales
|
$
|
% of
Sales
|
Dollar
|
%
|
Basis
Points
|
Net sales:
|
|
|
|
|
|
|
Retail clothing product
|
$
575,046
|
67.90%
|
$615,874
|
71.16%
|
($40,828)
|
-6.63%
|
(3.27)
|
Rental services
|
138,724
|
16.38%
|
132,443
|
15.30%
|
6,281
|
4.74%
|
1.08
|
Alteration and other services
|
49,919
|
5.89%
|
53,070
|
6.13%
|
(3,151)
|
-5.94%
|
(0.24)
|
Total retail sales
|
763,689
|
90.17%
|
801,387
|
92.60%
|
(37,698)
|
-4.70%
|
(2.43)
|
Corporate apparel clothing product
|
83,245
|
9.83%
|
64,059
|
7.40%
|
19,186
|
29.95%
|
2.43
|
Total net sales
|
846,934
|
100.00%
|
865,446
|
100.00%
|
(18,512)
|
-2.14%
|
-
|
|
|
|
|
|
|
|
|
Gross
margin(1):
|
|
|
|
|
|
|
|
Retail
clothing product
|
327,068
|
56.88%
|
341,526
|
55.45%
|
(14,458)
|
-4.23%
|
1.42
|
Rental
services
|
115,766
|
83.45%
|
111,012
|
83.82%
|
4,754
|
4.28%
|
(0.37)
|
Alteration
and other services
|
16,393
|
32.84%
|
16,810
|
31.68%
|
(417)
|
-2.48%
|
1.16
|
Occupancy
costs
|
(108,923)
|
-14.26%
|
(114,629)
|
-14.30%
|
5,706
|
4.98%
|
0.04
|
Total retail gross margin
|
350,304
|
45.87%
|
354,719
|
44.26%
|
(4,415)
|
-1.24%
|
1.61
|
Corporate apparel clothing product
|
26,902
|
32.32%
|
18,272
|
28.52%
|
8,630
|
47.23%
|
3.79
|
Total gross margin
|
377,206
|
44.54%
|
372,991
|
43.10%
|
4,215
|
1.13%
|
1.44
|
|
|
|
|
|
|
|
|
Advertising
expense
|
45,656
|
5.39%
|
47,991
|
5.55%
|
(2,335)
|
-4.87%
|
(0.15)
|
Selling, general and
administrative expenses
|
270,494
|
31.94%
|
271,301
|
31.35%
|
(807)
|
-0.30%
|
0.59
|
Tradename impairment
charge
|
-
|
-
|
90,100
|
10.41%
|
(90,100)
|
-100.00%
|
(10.41)
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
61,056
|
7.21%
|
$(36,401)
|
-4.21%
|
$97,457
|
NM
|
11.42
|
|
|
|
|
|
|
|
|
Summary of
Operating Income (Loss) by Reportable Segment and Shared Services
(1)
|
Retail
|
$
97,629
|
12.78%
|
$
512
|
0.06%
|
$
97,117
|
18968.16%
|
12.72
|
Corporate
apparel
|
10,314
|
12.39%
|
2,623
|
4.09%
|
7,691
|
293.21%
|
8.30
|
Shared
services
|
(46,887)
|
-5.54%
|
(39,536)
|
-4.57%
|
(7,351)
|
18.59%
|
(0.97)
|
|
|
|
|
|
|
|
|
Total operating income
(loss)
|
$
61,056
|
7.21%
|
$(36,401)
|
-4.21%
|
$97,457
|
NM
|
11.42
|
(1)
|
As a percent of
related sales.
|
Total net sales decreased 2.1%, or $18.5
million, to $846.9
million. Retail segment net sales decreased by 4.7%,
or $37.7 million. Corporate
apparel sales increased by 30.0% or $19.2
million.
Total gross margin was $377.2
million, an increase of $4.2
million, or 1.1%, due primarily to the impact of the rollout
of a large new uniform program partially offset by a decrease in
retail segment net sales. As a percent of retail sales,
retail gross margin increased 161 basis points to 45.9% primarily
as a result of anniversarying lower gross margins in last year's
third quarter that resulted from the clearance of merchandise
through the e-commerce channel, primarily at our Men's Wearhouse
brand.
Advertising expense decreased $2.3
million to $45.7 million and
decreased 15 basis points as a percent of total sales.
Selling, general and administrative expenses ("SG&A")
decreased $0.8 million to
$270.5 million but increased 59 basis
points as a percent of total sales, primarily as a result of
deleverage from lower sales.
Operating income for the third quarter was $61.1 million compared to an operating loss of
$36.4 million last year, which
included a tradename impairment charge of $90.1 million.
Net interest expense for the third quarter was $25.4 million compared to $26.4 million in 2015.
The effective tax rate for the third quarter was 24.1% for 2016
and a benefit of (56.8)% for 2015.
Net earnings for the quarter were $28.4
million compared to a net loss of $27.2 million last year. Diluted EPS was
$0.58 compared to diluted loss per
share of $0.56 in the prior year
quarter.
THIRD QUARTER ADJUSTED RESULTS (1)
Below is a comparison table and discussion of adjusted operating
metrics for the third quarter of FY 2016 and FY 2015. Note
that only the line items affected by adjustments are shown in the
table.
Consolidated
Adjusted Third Quarter FY 2016 Comparison to Adjusted Third Quarter
FY 2015 Operating Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
Q3
FY16
|
Q3
FY16
|
Q3
FY15
|
Q3
FY15
|
Variance
|
|
|
|
$
|
% of
Sales
|
$
|
% of
Sales
|
Dollar
|
%
|
Basis
Points
|
|
|
Gross
margin(2):
|
|
|
|
|
|
|
|
|
|
Retail
clothing product
|
$
327,068
|
56.88%
|
$ 341,575
|
55.46%
|
($14,507)
|
-4.25%
|
1.42
|
|
|
Alteration
and other services
|
16,400
|
32.85%
|
16,810
|
31.68%
|
(410)
|
-2.44%
|
1.18
|
|
|
Occupancy
costs
|
(109,901)
|
-14.39%
|
(114,782)
|
-14.32%
|
4,881
|
-4.25%
|
(0.07)
|
|
|
Total retail gross margin
|
349,333
|
45.74%
|
354,615
|
44.25%
|
(5,282)
|
-1.49%
|
1.49
|
|
|
Total gross margin
|
376,235
|
44.42%
|
372,887
|
43.09%
|
3,348
|
0.90%
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
257,176
|
30.37%
|
263,890
|
30.49%
|
(6,714)
|
-2.54%
|
(0.13)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
73,403
|
8.67%
|
$
61,006
|
7.05%
|
$12,397
|
20.32%
|
1.62
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Operating Income by Reportable Segment and Shared Services
(2)
|
|
|
Retail
|
$
107,537
|
14.08%
|
$
97,777
|
12.20%
|
$
9,760
|
9.98%
|
1.88
|
|
|
Corporate
apparel
|
10,314
|
12.39%
|
2,623
|
4.09%
|
7,691
|
293.21%
|
8.30
|
|
|
Shared
services
|
(44,448)
|
-5.25%
|
(39,394)
|
-4.55%
|
(5,054)
|
12.83%
|
(0.70)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
$
73,403
|
8.67%
|
$
61,006
|
7.05%
|
$12,397
|
20.32%
|
1.62
|
|
|
(1) See
Use of Non-GAAP Financial Measures for reconciliation to
GAAP.
|
(2) As a
percent of related sales.
|
Total gross margin increased $3.3
million and increased 134 basis points. Retail gross
margin dollars decreased $5.3 million
primarily due to lower sales while the retail gross margin rate
increased 149 basis points primarily due to anniversarying lower
gross margins in last year's third quarter, that resulted from
clearance activities in our e-commerce channel. Excluding the
impact of the factory/outlet stores last year, total gross margin
increased 140 basis points and retail gross margin increased 155
basis points.
On a stand-alone basis, Jos. A. Bank retail clothing product
selling margin excluding factory stores increased approximately 277
basis points due to lower product costs and increased average unit
retails.
Primarily due to the Company's cost reduction efforts, SG&A
expenses decreased $6.7 million and
decreased 13 basis points as a percent of total sales. The
decrease in SG&A expenses was partially offset by increased
incentive compensation accruals.
Operating income increased $12.4
million or 20.3%.
The effective tax rate was 30.6%.
Adjusted net earnings were $33.3
million, or $0.68 adjusted EPS
compared to adjusted EPS of $0.50 in
the last year's third quarter.
NINE MONTH GAAP RESULTS
Below is a comparison table and discussion of the condensed
consolidated nine months of FY 2016 to nine months of FY 2015
operating results.
Consolidated Nine
Months FY 2016 Comparison to Nine Months FY 2015 Operating
Results
|
|
|
|
|
|
|
|
|
|
YTD
FY16
|
YTD
FY16
|
YTD
FY15
|
YTD
FY15
|
Variance
|
|
$
|
% of
Sales
|
$
|
% of
Sales
|
Dollar
|
%
|
Basis
Points
|
Net sales:
|
|
|
|
|
|
|
Retail clothing product
|
$1,806,660
|
69.88%
|
$1,931,926
|
72.34%
|
($125,266)
|
-6.48%
|
(2.46)
|
Rental services
|
403,564
|
15.61%
|
392,621
|
14.70%
|
10,943
|
2.79%
|
0.91
|
Alteration and other services
|
149,888
|
5.80%
|
160,024
|
5.99%
|
(10,136)
|
-6.33%
|
(0.19)
|
Total retail sales
|
2,360,112
|
91.28%
|
2,484,571
|
93.03%
|
(124,459)
|
-5.01%
|
(1.75)
|
Corporate apparel clothing product
|
225,328
|
8.72%
|
186,038
|
6.97%
|
39,290
|
21.12%
|
1.75
|
Total net sales
|
2,585,440
|
100.00%
|
2,670,609
|
100.00%
|
(85,169)
|
-3.19%
|
-
|
|
|
|
|
|
|
|
|
Gross
margin(1):
|
|
|
|
|
|
|
|
Retail
clothing product
|
1,010,445
|
55.93%
|
1,081,144
|
55.96%
|
(70,699)
|
-6.54%
|
(0.03)
|
Rental
services
|
337,621
|
83.66%
|
329,755
|
83.99%
|
7,866
|
2.39%
|
(0.33)
|
Alteration
and other services
|
45,803
|
30.56%
|
50,496
|
31.56%
|
(4,693)
|
-9.29%
|
(1.00)
|
Occupancy
costs
|
(327,673)
|
-13.88%
|
(341,980)
|
-13.76%
|
14,307
|
4.18%
|
(0.12)
|
Total retail gross margin
|
1,066,196
|
45.18%
|
1,119,415
|
45.05%
|
(53,219)
|
-4.75%
|
0.12
|
Corporate apparel clothing product
|
73,155
|
32.47%
|
53,809
|
28.92%
|
19,346
|
35.95%
|
3.54
|
Total gross margin
|
1,139,351
|
44.07%
|
1,173,224
|
43.93%
|
(33,873)
|
-2.89%
|
0.14
|
|
|
|
|
|
|
|
|
Advertising
expense
|
138,547
|
5.36%
|
143,628
|
5.38%
|
(5,081)
|
-3.54%
|
(0.02)
|
Selling, general and
administrative expenses
|
849,122
|
32.84%
|
822,485
|
30.80%
|
26,637
|
3.24%
|
2.04
|
Tradename impairment
charge
|
-
|
-
|
90,100
|
3.37%
|
(90,100)
|
-100.00%
|
(3.37)
|
|
|
|
|
|
|
|
|
Operating
income
|
$
151,682
|
5.87%
|
$
117,011
|
4.38%
|
$34,671
|
29.63%
|
1.49
|
|
|
|
|
|
|
|
|
Summary of
Operating Income by Reportable Segment and Shared Services
(1)
|
Retail
|
$ 278,732
|
11.81%
|
$
233,143
|
9.38%
|
$
45,589
|
19.55%
|
2.43
|
Corporate
apparel
|
24,288
|
10.78%
|
6,429
|
3.46%
|
17,859
|
277.79%
|
7.32
|
Shared
services
|
(151,338)
|
-5.85%
|
(122,561)
|
-4.59%
|
(28,777)
|
23.48%
|
(1.26)
|
|
|
|
|
|
|
|
|
Total operating
income
|
$ 151,682
|
5.87%
|
$
117,011
|
4.38%
|
$34,671
|
29.63%
|
1.49
|
(1)
|
As a percent of
related sales.
|
Total net sales decreased 3.2%, or $85.2
million, to $2,585.4
million. Retail segment net sales decreased by 5.0%,
or $124.5 million. Corporate
apparel sales increased by 21.1% or $39.3
million.
Total gross margin was $1,139.4
million, a decrease of $33.9
million, or 2.9% due primarily to the decrease in retail
segment net sales. As a percent of total sales, total gross
margin increased 14 basis points.
Advertising expense decreased $5.1
million to $138.5 million and
decreased slightly by 2 basis points as a percent of total
sales.
SG&A increased $26.6 million
to $849.1 million or 204 basis
points, primarily due to costs associated with our store
rationalization and profit improvement programs.
Operating income for the nine months was $151.7 million compared to operating income of
$117.0 million last year.
Net interest expense for the nine months was $77.8 million compared to $79.3 million in 2015.
The effective tax rate for the nine months was 27.3% for 2016
and a benefit of (24.0%) for 2015.
Net earnings for the nine months were $55.0 million compared to net earnings of
$31.0 million last year.
Diluted EPS was $1.13 compared to
diluted EPS of $0.64 in the same
period last year.
NINE MONTH ADJUSTED RESULTS (1)
Below is a comparison table and discussion of adjusted operating
metrics for the nine months of FY 2016 and FY 2015. Note that
only the line items affected by adjustments are shown in the
table.
Consolidated
Adjusted Nine Months FY 2016 Comparison to Adjusted Nine Months FY
2015 Operating Results(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD
FY16
|
YTD
FY16
|
YTD
FY15
|
YTD
FY15
|
Variance
|
|
|
|
$
|
% of
Sales
|
$
|
% of
Sales
|
Dollar
|
%
|
Basis
Points
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin(2):
|
|
|
|
|
|
|
|
|
|
Retail clothing
product
|
$1,010,422
|
55.93%
|
$1,082,178
|
56.02%
|
($71,756)
|
-6.63%
|
(0.09)
|
|
|
Alteration
and other services
|
46,098
|
30.75%
|
50,496
|
31.56%
|
(4,398)
|
-8.71%
|
(0.80)
|
|
|
Occupancy
costs
|
(329,640)
|
-13.97%
|
(340,996)
|
-13.72%
|
11,356
|
-3.33%
|
(0.24)
|
|
|
Total retail gross margin
|
1,064,501
|
45.10%
|
1,121,433
|
45.14%
|
(56,932)
|
-5.08%
|
(0.03)
|
|
|
Total gross margin
|
1,137,656
|
44.00%
|
1,175,242
|
44.01%
|
(37,586)
|
-3.20%
|
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
779,208
|
30.14%
|
796,980
|
29.84%
|
(17,772)
|
-2.23%
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
$ 219,901
|
8.51%
|
$234,633
|
8.79%
|
($14,732)
|
-6.28%
|
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Operating Income by Reportable Segment and Shared Services
(2)
|
|
|
Retail
|
$
326,131
|
13.82%
|
$ 347,781
|
14.00%
|
$ (21,650)
|
-6.23%
|
(0.18)
|
|
|
Corporate
apparel
|
24,288
|
10.78%
|
6,429
|
3.46%
|
17,859
|
277.79%
|
7.32
|
|
|
Shared
services
|
(130,518)
|
-5.05%
|
(119,577)
|
-4.48%
|
(10,941)
|
9.15%
|
(0.57)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
income
|
$ 219,901
|
8.51%
|
$ 234,633
|
8.79%
|
($14,732)
|
-6.28%
|
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See Use of
Non-GAAP Financial Measures for reconciliation to GAAP.
|
(2) As a percent of
related sales.
|
Total gross margin decreased $37.6
million but was flat as a percent of sales. Retail
gross margin decreased $56.9 million
primarily due to lower sales and decreased 3 basis points as a
percent of retail sales. Excluding the impact of the factory/outlet
stores from both periods, total gross margin increased by 46 basis
points and retail gross margin increased 47 basis points.
On a stand-alone basis, Jos. A. Bank retail clothing product
selling margin excluding factory stores increased approximately 498
basis points due to lower product costs and an increase in the
average unit retail.
Primarily due to the Company's cost reduction efforts, SG&A
expenses decreased $17.8 million yet
deleveraged 30 basis points due to lower sales. The decrease in
SG&A expenses was partially offset by increased incentive
compensation accruals.
Operating income decreased $14.7
million or 6.3%.
The effective tax rate was 32.9%.
Adjusted net earnings were $95.4
million, or $1.96 adjusted EPS
compared to adjusted EPS of $2.11 in
the same period last year.
BALANCE SHEET
Total debt at the end of the third quarter 2016 was
approximately $1.6 billion. The
Company made its scheduled $1.8
million payment on its term loan during the third
quarter. In addition, as previously reported, during the
third quarter, the Company repurchased and retired $18.5 million of its senior notes, resulting in a
total of $25.0 million of its senior
notes being repurchased and retired during 2016. There were no
borrowings outstanding on our revolving credit facility at the end
of the third quarter of 2016.
Inventories decreased $12.3
million to $1,047.9 million at
the end of the third quarter 2016 from $1,060.2 million at the end of the prior year
third quarter, primarily due to the weaker exchange rate from
British pounds to U.S. dollars. Excluding this foreign
exchange translation impact, total inventories were a few million
dollars higher than last year. The Company expects
inventories to be at or below prior-year levels at year end 2016,
with Jos. A. Bank inventories already below prior-year levels.
Cash flow from operating activities through the third quarter
2016 was $176.9 million compared to
$112.2 million in the same period
last year. The increase was primarily due to working capital
items.
Capital expenditures through the third quarter 2016 were
$80.6 million compared to
$86.4 million in the prior year.
CALL AND WEBCAST INFORMATION
At 9:00 a.m. Eastern time on
Thursday, December 8, 2016,
management will host a conference call and real time webcast to
discuss fiscal 2016 third quarter and nine month results.
To access the conference call at 9:00
a.m. Eastern on December
8th, please dial 412-902-0030. To access
the live webcast, visit the Investor Relations section of the
Company's website at http://ir.tailoredbrands.com. A
telephonic replay will be available through December 15, 2016, by calling 201-612-7415 and
entering the access code of 13648633#, or a webcast archive will be
available free on the website for approximately 90 days.
STORE INFORMATION
|
October 29,
2016
|
October 31,
2015
|
January 30,
2016
|
|
Number of
Stores
|
Sq.
Ft.
(000's)
|
Number of
Stores
|
Sq.
Ft.
(000's)
|
Number of
Stores
|
Sq.
Ft.
(000's)
|
|
|
|
|
|
|
|
Men's Wearhouse
(a)
|
713
|
4,010.2
|
709
|
3,998.7
|
714
|
4,025.7
|
|
|
|
|
|
|
|
Jos. A. Bank
(b)
|
550
|
2,588.7
|
633
|
2,912.5
|
625
|
2,880.7
|
|
|
|
|
|
|
|
Men's Wearhouse and
Tux
|
61
|
90.1
|
183
|
255.1
|
160
|
223.5
|
|
|
|
|
|
|
|
The Tuxedo Shop @
Macy's
|
170
|
84.0
|
12
|
6.6
|
12
|
6.5
|
|
|
|
|
|
|
|
Moores, Clothing for
Men
|
126
|
789.0
|
123
|
775.0
|
124
|
779.8
|
|
|
|
|
|
|
|
K&G
(c)
|
90
|
2,101.5
|
88
|
2,087.1
|
89
|
2,102.1
|
|
|
|
|
|
|
|
Total
|
1,710
|
9,663.5
|
1,748
|
10,035.0
|
1,724
|
10,018.3
|
|
|
(a)
|
Includes one Joseph
Abboud store.
|
(b)
|
Excludes 14 franchise
stores.
|
(c)
|
82, 81 and 82 stores,
respectively, offering women's apparel.
|
Tailored Brands, Inc. is a leading authority on helping men
dress for work, special occasions and everyday life. We serve
our customers through an expansive omnichannel network that
includes over 1,700 locations in the U.S. and Canada as well as our branded ecommerce
websites. Our brands include Men's Wearhouse, Jos. A. Bank,
Joseph Abboud, Moores Clothing for
Men and K&G Fashion Superstores. We also operate a global
corporate apparel and workwear group consisting of Twin Hill in
the United States and Dimensions,
Alexandra and Yaffy in the United Kingdom.
For additional information on Tailored Brands, please visit the
Company's websites at www.tailoredbrands.com,
www.menswearhouse.com, www.josbank.com, www.josephabboud.com,
www.mooresclothing.com, www.kgstores.com, www.mwcleaners.com,
www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.
This press release contains forward-looking information,
including the Company's statements regarding its ability to drive
traffic and growth through innovative product offerings and
strengthened omnichannel capabilities, comparable sales
expectations and adjusted earnings per share guidance, and
inventory expectations. In addition, statements containing
words such as "guidance," "may," "believe," "anticipate," "expect,"
"intend," "plan," "project," "projections," "business outlook," and
"estimate" or similar expressions constitute forward-looking
statements.. The forward-looking statements are made pursuant
to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not
guarantees of future performance and a variety of factors could
cause actual results to differ materially from the anticipated or
expected results expressed in or suggested by these forward-looking
statements. Factors that might cause or contribute to such
differences include, but are not limited to: actions by
governmental entities, domestic and international macro-economic
conditions, inflation or deflation, the loss of, or changes in, key
personnel; success, or lack thereof, in executing our internal
strategies and operating plans including new store and new market
expansion plans, cost reduction initiatives, store rationalization
plans, profit improvement plans, revenue enhancement strategies and
the impact of opening tuxedo shops within Macy's stores, changes in
demand for clothing, market trends in the retail business, customer
confidence and spending patterns, changes in traffic trends in our
stores, customer acceptance of our merchandise strategies,
performance issues with key suppliers, disruptions in our supply
chain, severe weather, foreign currency fluctuations, government
export and import policies, advertising or marketing activities of
competitors, and legal proceedings.
The forward-looking statements in this press release speak
only as of the date hereof. Except for the ongoing obligations of
Tailored Brands to disclose material information under the federal
securities laws, Tailored Brands undertakes no obligation to revise
or update publicly any forward-looking statement, except as
required by law. Other factors that may impact the
forward-looking statements are described in our latest annual
report on Form 10-K and our filings on Form
10-Q.
Contact:
Investor Relations
(281) 776-7575
ir@tailoredbrands.com
Julie MacMedan, VP, Investor
Relations
Tailored Brands, Inc.
TAILORED BRANDS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
|
(Unaudited)
|
|
For the Three
Months Ended October 29, 2016 and October 31, 2015
|
(In thousands, except
per share data)
|
|
|
Three Months
Ended
|
|
Variance
|
|
|
% of
|
|
% of
|
|
|
|
Basis
|
|
2016
|
Sales
|
2015
|
Sales
|
|
Dollar
|
%
|
Points
|
Net sales:
|
|
|
|
|
|
|
|
|
Retail clothing product
|
$
575,046
|
67.90%
|
$
615,874
|
71.16%
|
|
$
(40,828)
|
-6.63%
|
-3.27
|
Rental services
|
138,724
|
16.38%
|
132,443
|
15.30%
|
|
6,281
|
4.74%
|
1.08
|
Alteration and other services
|
49,919
|
5.89%
|
53,070
|
6.13%
|
|
(3,151)
|
-5.94%
|
-0.24
|
Total retail sales
|
763,689
|
90.17%
|
801,387
|
92.60%
|
|
(37,698)
|
-4.70%
|
-2.43
|
Corporate apparel clothing product
|
83,245
|
9.83%
|
64,059
|
7.40%
|
|
19,186
|
29.95%
|
2.43
|
Total net sales
|
846,934
|
100.00%
|
865,446
|
100.00%
|
|
(18,512)
|
-2.14%
|
0.00
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
469,728
|
55.46%
|
492,455
|
56.90%
|
|
(22,727)
|
-4.62%
|
-1.44
|
|
|
|
|
|
|
|
|
|
Gross margin
(a):
|
|
|
|
|
|
|
|
|
Retail
clothing product
|
327,068
|
56.88%
|
341,526
|
55.45%
|
|
(14,458)
|
-4.23%
|
1.42
|
Rental
services
|
115,766
|
83.45%
|
111,012
|
83.82%
|
|
4,754
|
4.28%
|
-0.37
|
Alteration
and other services
|
16,393
|
32.84%
|
16,810
|
31.68%
|
|
(417)
|
-2.48%
|
1.16
|
Occupancy
costs
|
(108,923)
|
-14.26%
|
(114,629)
|
-14.30%
|
|
5,706
|
4.98%
|
0.04
|
Total retail gross margin
|
350,304
|
45.87%
|
354,719
|
44.26%
|
|
(4,415)
|
-1.24%
|
1.61
|
Corporate apparel clothing product
|
26,902
|
32.32%
|
18,272
|
28.52%
|
|
8,630
|
47.23%
|
3.79
|
Total gross margin
|
377,206
|
44.54%
|
372,991
|
43.10%
|
|
4,215
|
1.13%
|
1.44
|
|
|
|
|
|
|
|
|
|
Advertising
expense
|
45,656
|
5.39%
|
47,991
|
5.55%
|
|
(2,335)
|
-4.87%
|
-0.15
|
Selling, general and
administrative expenses
|
270,494
|
31.94%
|
271,301
|
31.35%
|
|
(807)
|
-0.30%
|
0.59
|
Tradename impairment
charge
|
-
|
-
|
90,100
|
10.41%
|
|
(90,100)
|
-100.00%
|
-10.41
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
61,056
|
7.21%
|
(36,401)
|
-4.21%
|
|
97,457
|
NM
|
11.42
|
|
|
|
|
|
|
|
|
|
Net
interest
|
(25,424)
|
-3.00%
|
(26,407)
|
-3.05%
|
|
983
|
-3.72%
|
0.05
|
Gain on
extinguishment of debt, net
|
1,808
|
0.21%
|
-
|
-
|
|
1,808
|
NM
|
0.21
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
before income taxes
|
37,440
|
4.42%
|
(62,808)
|
-7.26%
|
|
100,248
|
NM
|
11.68
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
9,007
|
1.06%
|
(35,654)
|
-4.12%
|
|
44,661
|
NM
|
5.18
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
$
28,433
|
3.36%
|
$
(27,154)
|
-3.14%
|
|
$
55,587
|
NM
|
6.49
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
per diluted common share allocated to common
shareholders
|
$
0.58
|
|
$
(0.56)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
diluted common shares outstanding:
|
48,812
|
|
48,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Gross margin
percent of sales is calculated as a percentage of related
sales.
|
|
|
TAILORED BRANDS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
|
(Unaudited)
|
|
For the Nine
Months Ended October 29, 2016 and October 31, 2015
|
(In thousands, except
per share data)
|
|
|
Nine Months
Ended
|
|
Variance
|
|
|
%
of
|
|
%
of
|
|
|
|
Basis
|
|
2016
|
Sales
|
2015
|
Sales
|
|
Dollar
|
%
|
Points
|
Net sales:
|
|
|
|
|
|
|
|
|
Retail clothing product
|
$
1,806,660
|
69.88%
|
$
1,931,926
|
72.34%
|
|
$
(125,266)
|
-6.48%
|
-2.46
|
Rental services
|
403,564
|
15.61%
|
392,621
|
14.70%
|
|
10,943
|
2.79%
|
0.91
|
Alteration and other services
|
149,888
|
5.80%
|
160,024
|
5.99%
|
|
(10,136)
|
-6.33%
|
-0.19
|
Total retail sales
|
2,360,112
|
91.28%
|
2,484,571
|
93.03%
|
|
(124,459)
|
-5.01%
|
-1.75
|
Corporate apparel clothing product
|
225,328
|
8.72%
|
186,038
|
6.97%
|
|
39,290
|
21.12%
|
1.75
|
Total net sales
|
2,585,440
|
100.00%
|
2,670,609
|
100.00%
|
|
(85,169)
|
-3.19%
|
0.00
|
|
|
|
|
|
|
|
|
|
Total cost of sales
|
1,446,089
|
55.93%
|
1,497,385
|
56.07%
|
|
(51,296)
|
-3.43%
|
-0.14
|
|
|
|
|
|
|
|
|
|
Gross margin
(a):
|
|
|
|
|
|
|
|
|
Retail
clothing product
|
1,010,445
|
55.93%
|
1,081,144
|
55.96%
|
|
(70,699)
|
-6.54%
|
-0.03
|
Rental
services
|
337,621
|
83.66%
|
329,755
|
83.99%
|
|
7,866
|
2.39%
|
-0.33
|
Alteration
and other services
|
45,803
|
30.56%
|
50,496
|
31.56%
|
|
(4,693)
|
-9.29%
|
-1.00
|
Occupancy
costs
|
(327,673)
|
-13.88%
|
(341,980)
|
-13.76%
|
|
14,307
|
4.18%
|
-0.12
|
Total retail gross margin
|
1,066,196
|
45.18%
|
1,119,415
|
45.05%
|
|
(53,219)
|
-4.75%
|
0.12
|
Corporate apparel clothing product
|
73,155
|
32.47%
|
53,809
|
28.92%
|
|
19,346
|
35.95%
|
3.54
|
Total gross margin
|
1,139,351
|
44.07%
|
1,173,224
|
43.93%
|
|
(33,873)
|
-2.89%
|
0.14
|
|
|
|
|
|
|
|
|
|
Advertising
expense
|
138,547
|
5.36%
|
143,628
|
5.38%
|
|
(5,081)
|
-3.54%
|
-0.02
|
Selling, general and
administrative expenses
|
849,122
|
32.84%
|
822,485
|
30.80%
|
|
26,637
|
3.24%
|
2.04
|
Tradename impairment
charge
|
-
|
-
|
90,100
|
3.37%
|
|
(90,100)
|
-100.00%
|
-3.37
|
|
|
|
|
|
|
|
|
|
Operating
income
|
151,682
|
5.87%
|
117,011
|
4.38%
|
|
34,671
|
29.63%
|
1.49
|
|
|
|
|
|
|
|
|
|
Net
interest
|
(77,751)
|
-3.01%
|
(79,335)
|
-2.97%
|
|
1,584
|
-2.00%
|
-0.04
|
Gain (loss) on
extinguishment of debt, net
|
1,737
|
0.07%
|
(12,675)
|
-0.47%
|
|
14,412
|
NM
|
0.54
|
|
|
|
|
|
|
|
|
|
Earnings before
income taxes
|
75,668
|
2.93%
|
25,001
|
0.94%
|
|
50,667
|
202.66%
|
1.99
|
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
20,623
|
0.80%
|
(5,993)
|
-0.22%
|
|
26,616
|
NM
|
1.02
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
55,045
|
2.13%
|
$
30,994
|
1.16%
|
|
$
24,051
|
77.60%
|
0.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
diluted common share allocated to common shareholders
|
$
1.13
|
|
$
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
diluted common shares outstanding:
|
48,691
|
|
48,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Gross
margin percent of sales is calculated as a percentage of related
sales.
|
|
|
TAILORED BRANDS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
|
|
October
29,
|
|
October
31,
|
|
|
2016
|
|
2015
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
34,948
|
|
$
53,654
|
|
Accounts receivable,
net
|
71,898
|
|
66,902
|
|
Inventories
|
1,047,915
|
|
1,060,247
|
|
Other current
assets
|
60,190
|
|
168,071
|
|
|
|
|
|
|
Total
current assets
|
1,214,951
|
|
1,348,874
|
Property and
equipment, net
|
501,391
|
|
548,481
|
Rental product,
net
|
160,101
|
|
147,344
|
Goodwill
|
116,026
|
|
890,991
|
Intangible assets,
net
|
172,337
|
|
568,171
|
Other
assets
|
10,323
|
|
8,518
|
|
|
|
|
|
|
Total
assets
|
$
2,175,129
|
|
$
3,512,379
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' (DEFICIT) EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
200,199
|
|
$
233,520
|
|
Accrued expenses and
other current liabilities
|
280,658
|
|
265,993
|
|
Income taxes
payable
|
917
|
|
13,218
|
|
Current portion of
long-term debt
|
7,000
|
|
7,000
|
|
|
|
|
|
|
Total
current liabilities
|
488,774
|
|
519,731
|
|
|
|
|
|
Long-term debt,
net
|
1,588,873
|
|
1,649,206
|
Deferred taxes and
other liabilities
|
175,179
|
|
358,059
|
|
|
|
|
|
|
Total
liabilities
|
2,252,826
|
|
2,526,996
|
|
|
|
|
|
Shareholders'
(deficit) equity:
|
|
|
|
|
Preferred
stock
|
-
|
|
-
|
|
Common
stock
|
487
|
|
485
|
|
Capital in excess of
par
|
466,817
|
|
452,666
|
|
(Accumulated deficit)
retained earnings
|
(499,663)
|
|
541,672
|
|
Accumulated other
comprehensive loss
|
(45,338)
|
|
(6,356)
|
|
Treasury stock, at
cost
|
-
|
|
(3,084)
|
|
|
|
|
|
|
Total
shareholders' (deficit) equity
|
(77,697)
|
|
985,383
|
|
|
|
|
|
|
Total liabilities and shareholders' (deficit) equity
|
$
2,175,129
|
|
$
3,512,379
|
|
|
|
|
|
TAILORED BRANDS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
For the Nine
Months Ended October 29, 2016 and October 31, 2015
|
(In
thousands)
|
|
|
|
Nine Months
Ended
|
|
|
2016
|
|
2015
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net
earnings
|
$
55,045
|
|
$
30,994
|
|
Non-cash adjustments
to net earnings:
|
|
|
|
|
Depreciation and amortization
|
87,838
|
|
98,162
|
|
Rental
product amortization
|
35,982
|
|
30,496
|
|
Tradename impairment charge
|
-
|
|
90,100
|
|
Asset
impairment charges
|
4,293
|
|
1,695
|
|
(Gain)
loss on extinguishment of debt, net
|
(1,737)
|
|
12,675
|
|
Amortization of deferred financing costs
|
4,922
|
|
5,151
|
|
Amortization of discount on long-term debt
|
728
|
|
848
|
|
Loss
(gain) on disposition of assets
|
616
|
|
(833)
|
|
Other
|
(556)
|
|
(46,457)
|
|
Changes in operating
assets and liabilities
|
(10,247)
|
|
(110,595)
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
176,884
|
|
112,236
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
(80,550)
|
|
(86,406)
|
|
Proceeds from sales
of property and equipment
|
605
|
|
2,613
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(79,945)
|
|
(83,793)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Payments on term
loan
|
(40,701)
|
|
(6,250)
|
|
Proceeds from
asset-based revolving credit facility
|
520,550
|
|
5,500
|
|
Payments on
asset-based revolving credit facility
|
(520,550)
|
|
(5,500)
|
|
Repurchase and
retirement of senior notes
|
(25,000)
|
|
-
|
|
Deferred financing
costs
|
-
|
|
(3,566)
|
|
Cash dividends
paid
|
(26,438)
|
|
(26,269)
|
|
Proceeds from
issuance of common stock
|
1,451
|
|
2,454
|
|
Tax payments related
to vested deferred stock units
|
(1,258)
|
|
(4,538)
|
|
Excess tax benefits
from share-based plans
|
-
|
|
1,104
|
|
Repurchases of common
stock
|
-
|
|
(277)
|
|
|
|
|
|
|
Net cash
used in financing activities
|
(91,946)
|
|
(37,342)
|
|
|
|
|
|
|
Effect of exchange
rate changes
|
(25)
|
|
292
|
|
|
|
|
|
INCREASE
(DECREASE) IN CASH AND CASH EQUIVALENTS
|
4,968
|
|
(8,607)
|
|
|
|
|
|
|
Balance at beginning
of period
|
29,980
|
|
62,261
|
|
Balance at end of
period
|
$
34,948
|
|
$
53,654
|
TAILORED BRANDS, INC.
UNAUDITED NON-GAAP FINANCIAL
MEASURES
(In thousands, except per share amounts)
Use of Non-GAAP Financial Measures
In addition to providing financial results in accordance with
GAAP, we have provided adjusted information for the fiscal third
quarter and nine months of 2016 and 2015 as well as our fiscal year
ending January 28, 2017. This
non-GAAP financial information is provided to enhance the user's
overall understanding of the Company's financial performance by
removing the impacts of large, unusual or unique transactions that
we believe are not indicative of our core operating results,
primarily costs related to our store rationalization and profit
improvement programs as well as certain items related to the
acquisition and integration of Jos. A. Bank. Management uses
these adjusted results to assess the Company's performance, to make
decisions about how to allocate resources and to develop
expectations for future operating performance. In addition,
adjusted EPS is used as a performance measure in the Company's
executive compensation program to determine the number of
performance units that are ultimately earned.
The non-GAAP financial information should be considered in
addition to, not as a substitute for or as being superior to,
financial information prepared in accordance with GAAP.
Management strongly encourages investors and shareholders to review
the Company's financial statements and publicly filed reports in
their entirety and not to rely on any single financial
measure.
Reconciliations of non-GAAP information to our actual results
follow and amounts may not sum due to rounded numbers. In
addition, only the line items affected by adjustments are shown in
the tables.
GAAP to Non-GAAP
Adjusted Consolidated Statements of Earnings
Information
|
|
GAAP to Non-GAAP
Adjusted - Three Months Ended October 29, 2016
|
|
Consolidated
Results
|
GAAP
Results
|
Jos. A. Bank
Integration (1)
|
Profit
Improvement(2)
|
Other
|
Total
Adjustments
|
Non-GAAP
Adjusted Results
|
|
Alteration and other
services gross margin
|
$
16,393
|
$
-
|
$
7
|
$
-
|
$
7
|
$
16,400
|
|
Occupancy
costs
|
(108,923)
|
532
|
(1,510)
|
-
|
(978)
|
(109,901)
|
|
|
|
|
|
|
|
|
|
Total retail gross
margin
|
350,304
|
532
|
(1,503)
|
-
|
(971)
|
349,333
|
|
|
|
|
|
|
|
|
|
Total gross
margin
|
377,206
|
532
|
(1,503)
|
-
|
(971)
|
376,235
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
270,494
|
(866)
|
(12,452)
|
-
|
(13,318)
|
257,176
|
|
|
|
|
|
|
|
|
|
Operating
income(3)
|
61,056
|
1,398
|
10,949
|
-
|
12,347
|
73,403
|
|
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debt, net
|
1,808
|
-
|
-
|
(1,808)
|
(1,808)
|
-
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes(4)
|
9,007
|
|
|
|
5,667
|
14,674
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
28,433
|
|
|
|
4,872
|
33,305
|
|
|
|
|
|
|
|
|
|
Net earnings per diluted common share
allocated to common shareholders
|
$
0.58
|
|
|
|
$
0.10
|
$
0.68
|
|
|
|
(1) Primarily
consisting of severance costs and accelerated
depreciation.
|
|
(2) Primarily
consists of $8.7 million of lease termination costs and $1.8
million of consulting costs.
|
|
(3) Of the $12.3
million in total adjustments to operating income, $9.9 million
relates to the retail segment and $2.4 million relates to shared
services.
|
|
(4) The tax effect of
the excluded items is computed as the difference between tax
expense on a GAAP basis and tax expense on an adjusted non-GAAP
basis.
|
GAAP to Non-GAAP
Adjusted - Three Months Ended October 31, 2015
|
Consolidated
Results
|
GAAP
Results
|
Acquisition
&
Integration(1)
|
Purchase
Acctg.
Allocation (2)
|
Other(3)
|
Total
Adjustments
|
Non-GAAP
Adjusted Results
|
Retail clothing
product gross margin
|
$
341,526
|
$
10
|
$
39
|
$
-
|
$
49
|
$
341,575
|
Occupancy
costs
|
(114,629)
|
(206)
|
53
|
-
|
(153)
|
(114,782)
|
|
|
|
|
|
|
|
|
Total retail gross
margin
|
354,719
|
(196)
|
92
|
-
|
(104)
|
354,615
|
|
|
|
|
|
|
|
|
Total gross
margin
|
372,991
|
(196)
|
92
|
-
|
(104)
|
372,887
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
271,301
|
(5,222)
|
(2,116)
|
(73)
|
(7,411)
|
263,890
|
Tradename impairment
charge
|
90,100
|
-
|
-
|
(90,100)
|
(90,100)
|
-
|
|
|
|
|
|
|
|
|
Operating (loss)
income(4)
|
(36,401)
|
5,026
|
2,208
|
90,173
|
97,407
|
61,006
|
|
|
|
|
|
|
|
|
(Benefit) provision
for income taxes(5)
|
(35,654)
|
|
|
|
46,116
|
10,462
|
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
(27,154)
|
|
|
|
51,291
|
24,137
|
|
|
|
|
|
|
|
|
Net (loss) earnings
per diluted common share allocated
to common
shareholders
|
$
(0.56)
|
|
|
|
$
1.06
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Acquisition &
integration primarily relates to Jos. A. Bank.
|
(2) Consists of
depreciation and amortization adjustments resulting from the
recognition of intangible assets and step up in fair value for
PP&E for Jos. A. Bank.
|
(3) Other primarily
relates to non-cash tradename and store impairment charges and a
gain on the sale of property.
|
(4) Of the $97.4
million in total adjustments to operating income, $97.3 million
relates to the retail segment and $0.1 million relates to shared
services.
|
(5) The tax effect of
the excluded items is computed as the difference between tax
expense on a GAAP basis and tax expense on an adjusted non-GAAP
basis.
|
GAAP to Non-GAAP
Adjusted - Nine Months Ended October 29, 2016
|
Consolidated
Results
|
GAAP
Results
|
Jos. A. Bank
Integration (1)
|
Profit
Improvement(2)
|
Other
|
Total
Adjustments
|
Non-GAAP
Adjusted
Results
|
Retail clothing
product gross margin
|
$
1,010,445
|
$
-
|
$
-
|
$
(23)
|
$
(23)
|
$
1,010,422
|
Alteration and other
services gross margin
|
45,803
|
-
|
295
|
-
|
295
|
46,098
|
Occupancy
costs
|
(327,673)
|
1,613
|
(3,016)
|
(564)
|
(1,967)
|
(329,640)
|
|
|
|
|
|
|
|
Total retail gross
margin
|
1,066,196
|
1,613
|
(2,721)
|
(587)
|
(1,695)
|
1,064,501
|
|
|
|
|
|
|
|
Total gross
margin
|
1,139,351
|
1,613
|
(2,721)
|
(587)
|
(1,695)
|
1,137,656
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
849,122
|
(5,431)
|
(61,846)
|
(2,637)
|
(69,914)
|
779,208
|
|
|
|
|
|
|
|
Operating
income(3)
|
151,682
|
7,044
|
59,125
|
2,050
|
68,219
|
219,901
|
|
|
|
|
|
|
|
|
Gain on
extinguishment of debt, net
|
1,737
|
-
|
-
|
(1,737)
|
(1,737)
|
-
|
|
|
|
|
|
|
|
Provision for income
taxes(4)
|
20,623
|
|
|
|
26,173
|
46,796
|
|
|
|
|
|
|
|
Net
earnings
|
55,045
|
|
|
|
40,309
|
95,354
|
|
|
|
|
|
|
|
Net earnings per diluted common share
allocated
to common
shareholders
|
$
1.13
|
|
|
|
$
0.83
|
$
1.96
|
|
|
(1) Primarily
consisting of severance costs and accelerated
depreciation.
|
(2) Primarily
consists of $37.0 million of lease termination costs and $13.6
million of consulting costs.
|
(3) Of the $68.2
million in total adjustments to operating income, $47.4 million
relates to the retail segment and $20.8 million relates to shared
services.
|
(4) The tax effect of
the excluded items is computed as the difference between tax
expense on a GAAP basis and tax expense on an adjusted non-GAAP
basis.
|
GAAP to Non-GAAP
Adjusted - Nine Months Ended October 31, 2015
|
Consolidated
Results
|
GAAP
Results
|
Acquisition
&
Integration(1)
|
Purchase
Acctg.
Allocation (2)
|
Other(3)
|
Total
Adjustments
|
Non-GAAP
Adjusted Results
|
Retail clothing
product gross margin
|
$
1,081,144
|
$
65
|
$
969
|
$
-
|
$
1,034
|
$
1,082,178
|
Occupancy
costs
|
(341,980)
|
260
|
723
|
-
|
983
|
(340,996)
|
|
|
|
|
|
|
|
Total retail
gross margin
|
1,119,415
|
325
|
1,692
|
-
|
2,017
|
1,121,433
|
|
|
|
|
|
|
|
Total gross
margin
|
1,173,224
|
325
|
1,692
|
-
|
2,017
|
1,175,242
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
822,485
|
(15,597)
|
(6,067)
|
(3,841)
|
(25,505)
|
796,980
|
Tradename impairment
charge
|
90,100
|
-
|
-
|
(90,100)
|
(90,100)
|
-
|
|
|
|
|
|
|
|
Operating
income(4)
|
117,011
|
15,922
|
7,759
|
93,941
|
117,622
|
234,633
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt
|
(12,675)
|
12,675
|
-
|
-
|
12,675
|
-
|
|
|
|
|
|
|
|
Provision for income
taxes(5)
|
(5,993)
|
|
|
|
58,965
|
52,972
|
|
|
|
|
|
|
|
Net
earnings
|
30,994
|
|
|
|
71,331
|
102,326
|
|
|
|
|
|
|
|
Net earnings per diluted common share
allocated to common shareholders
|
$
0.64
|
|
|
|
$
1.47
|
$
2.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Acquisition &
integration primarily relates to Jos. A. Bank.
|
(2) Consists of
depreciation and amortization adjustments resulting from the
recognition of intangible assets and step up in fair value for
PP&E for Jos. A. Bank.
|
(3) Other primarily
relates to non-cash tradename and store impairment charges,
separation costs with a former executive and a gain on the sale of
property.
|
(4) Of the $117.6
million in total adjustments to operating income, $114.6 million
relates to the retail segment and $3.0 million relates to shared
services.
|
(5) The tax effect of
the excluded items is computed as the difference between tax
expense on a GAAP basis and tax expense on an adjusted non-GAAP
basis.
|
GAAP to Non-GAAP
Adjusted EPS for Fiscal 2016
|
GAAP to Non-GAAP
Adjusted - Reconciliation of Forecasted Adjusted EPS for Fiscal
2016
|
Diluted EPS- GAAP
Basis
|
$0.65-$0.80
|
Profit Improvement
Programs
|
$0.94
|
Jos. A. Bank
Integration
|
$0.10
|
Other
|
$0.01_____
|
|
|
Diluted EPS- Non-GAAP
Adjusted (1)
|
$1.70-$1.85
|
(1) Based on
forecasted adjusted non-GAAP tax rate of 33%
|
GAAP to Non-GAAP
Adjusted Earnings Information for Jos. A. Bank
|
GAAP to Non-GAAP
Adjusted - Three Months Ended October 29, 2016
|
Jos. A. Bank
Brand
|
GAAP
Results
|
Total
Adjustments
|
Non-GAAP Adjusted
Results
|
Gross margin before
occupancy
|
$
95,708
|
$
-
|
$
95,708
|
Occupancy
costs
|
(34,167)
|
(406)
|
(34,573)
|
|
|
|
|
Selling, general and
administrative expenses
|
70,429
|
(6,964)
|
63,465
|
|
|
|
|
Operating
loss
|
$
(8,888)
|
$
(6,558)
|
$
(2,330)
|
|
GAAP to Non-GAAP
Adjusted - Three Months Ended October 31, 2015
|
Jos. A. Bank
Brand
|
GAAP
Results
|
Total
Adjustments
|
Non-GAAP Adjusted
Results
|
Gross margin before
occupancy
|
$
113,500
|
$
49
|
$
113,549
|
Occupancy
costs
|
(38,237)
|
(175)
|
(38,412)
|
|
|
|
|
Selling, general and
administrative expenses
|
167,043
|
(96,024)
|
71,019
|
|
|
|
|
Operating (loss)
income
|
$
(91,780)
|
$
(95,898)
|
$
4,118
|
|
GAAP to Non-GAAP
Adjusted - Nine Months Ended October 29, 2016
|
Jos. A. Bank
Brand
|
GAAP
Results
|
Total
Adjustments
|
Non-GAAP Adjusted
Results
|
Gross margin before
occupancy
|
$
292,725
|
$
(23)
|
$
292,702
|
Occupancy
costs
|
(104,778)
|
(1,007)
|
(105,785)
|
|
|
|
|
Selling, general and
administrative expenses
|
226,955
|
(32,747)
|
194,208
|
|
|
|
|
Operating
loss
|
$
(39,008)
|
$
(31,717)
|
$
(7,291)
|
|
GAAP to Non-GAAP
Adjusted - Nine Months Ended October 31, 2015
|
Jos. A. Bank
Brand
|
GAAP
Results
|
Total
Adjustments
|
Non-GAAP Adjusted
Results
|
Gross margin before
occupancy
|
$
357,897
|
$
985
|
$
358,882
|
Occupancy
costs
|
(114,355)
|
1,009
|
(113,346)
|
|
|
|
|
Selling, general and
administrative expenses
|
315,511
|
(104,573)
|
210,938
|
|
|
|
|
Operating (loss)
income
|
$
(71,969)
|
$
(106,567)
|
$
34,598
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/tailored-brands-inc-reports-fiscal-2016-third-quarter-and-nine-month-results-300374885.html
SOURCE Tailored Brands, Inc.