Stock Monitor: Duluth Holdings Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 16, 2018 / Active-Investors.com has just released a free earnings report on Tailored Brands, Inc. (NYSE: TLRD). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TLRD. The Company reported its fourth quarter fiscal 2017 and full fiscal year 2017 operating and financial results on March 14, 2018. The specialty apparel retailer reported better than expected results and provided guidance for FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Duluth Holdings Inc. (NASDAQ: DLTH), which also belongs to the Services sector as the Company Tailored Brands. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Tailored Brands most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For Q4 2017, Tailored Brands' total net sales increased 8.4% to $859.9 million, including a benefit of $45.7 million from the 53rd week. The Company's revenue numbers beat analysts' estimates of $810.0 million.
During Q4 2017, Tailored Brands' Retail segment's net sales increased 6.6%, primarily due to an increase in retail segment comparable sales of 2.5% and a benefit of $40.7 million from the 53rd week. The Company's Corporate Apparel segment's net sales increased 32.2% on a y-o-y basis, primarily due to the rollout of new uniform programs in the US and the UK, a benefit of $5.0 million from the 53rd week, and the impact of a stronger British pound on a y-o-y basis in the reported quarter.
On a GAAP basis, Tailored Brands' consolidated gross margin was $320.9 million in Q4 2017 compared to $302.1 million in Q4 2016, primarily due to an increase in net sales. As a percentage of sales, the Company's consolidated gross margin decreased 80 basis points to 37.3%. On a GAAP basis, Tailored Brands' retail gross margin was $302.2 million compared to $287.6 million in Q4 2016. As a percentage of sales, the Company's retail gross margin decreased 60 basis points to 38.4%.
For Q4 2017, Tailored Brands' advertising expenses increased $1.2 million to $52.6 million on a y-o-y basis, but decreased 40 basis points as a percentage of sales to 6.1%. The increase in advertising expenses was driven primarily by a shift in the timing of marketing spend from Q3 2017. The Company's selling, general, and administrative expenses (SG&A) decreased $1.7 million to $252.8 million and decreased 270 basis points as a percentage of sales during the reported quarter.
Tailored Brands' GAAP operating income was $13.3 million in Q4 2017 compared to $18.9 million in Q4 2016. On an adjusted basis, the Company's operating income was $14.8 million in the reported quarter compared to $9.3 million in the prior year's same quarter.
During Q4 2017, on a GAAP basis, Tailored Brands' effective tax rate was a benefit of 96.1% compared to a benefit of 31.8% in Q4 2016. The Company's reported quarter GAAP effective tax rate included one-time items, including a favorable tax resolution, offset by a change in Tailored Brands' position on permanently reinvested foreign earnings and other impacts of the recently enacted Tax Cuts and Jobs Act (TCJA) of 2017.
For Q4 2017, Tailored Brands reported a GAAP net loss of $0.5 million, or $0.01 loss per diluted share, compared to a net loss of $30.1 million or $0.62 loss per diluted share, in Q4 2016. On an adjusted basis, the Company's net loss was $0.1 million, or $0.00 per diluted share, in the reported quarter versus a net loss of $9.2 million, or $0.19 loss per diluted share, in the prior year's comparable quarter. Tailored Brands' reported results were better than Wall Street's estimates for a loss of $0.11 per share.
For the full year FY17, Tailored Brands' total net sales dropped 2.2% to $3.30 billion compared to $3.38 billion for FY16.
On a GAAP basis, Tailored Brands' net income was $96.7 million, or $1.95 per diluted share, in FY17 compared to $25.0 million, or $0.51 per diluted share, in FY16. On an adjusted basis, the Company's net income was $108.6 million, or $2.20 per diluted share, in FY17 compared to $87.3 million, or $1.79 per diluted share, in FY16.
Comparable Sales
During Q4 2017, Tailored Brands' Men's Wearhouse segment's comparable sales increased 2.3% on a y-o-y basis, primarily due to an increase in transactions, partially offset by a decrease in units per transaction. In the reported quarter, the Company's Jos. A. Bank segment's comparable sales increased 5.3%, primarily due to an increase in transactions and units per transaction that more than offset a decrease in average unit retail.
For Q4 2017, Tailored Brands' K&G segment's comparable sales decreased 1.7% on a y-o-y basis, primarily due to lower transactions that were partially offset by an increase in units per transaction. The Company's Moores segment's comparable sales decreased 1.4%, primarily due to a decrease in average unit retail that were partially offset by an increase in transactions.
Balance Sheet Highlights
As of February 03, 2018, Tailored Brands' cash and cash equivalents were $103.6 million compared to $70.9 million as on January 28, 2017. The Company did not have any borrowings outstanding on its revolving credit facility at the end of 2017.
Tailored Brands' total debt was approximately $1.4 billion as of February 03, 2018. During Q4 2017, the Company repurchased and retired $38.8 million face value of its senior notes. Furthermore, Tailored Brands made a total of $43.5 million in payments on its term loan, including a $40.0 million voluntary prepayment in the reported quarter.
For FY17, Tailored Brands' cash flow from operating activities was $350.8 million compared to $242.6 million in FY16. The increase was primarily driven by higher net earnings and expected lower inventory and rental product purchases.
Outlook
For FY18, Tailored Brands is forecasting to achieve GAAP diluted earnings per share (EPS) to be in the range of $2.35 to $2.50. The Company expects comparable sales for Men's Wearhouse and Jos. A. Bank to be positive low-single-digits; Moores comparable sales to be flat-to-up slightly; and K&G comparable sales to be flat-to-down slightly.
Stock Performance Snapshot
April 13, 2018 - At Friday's closing bell, Tailored Brands' stock marginally declined 0.56%, ending the trading session at $28.55.
Volume traded for the day: 766.57 thousand shares.
Stock performance in the last month – up 23.01%; previous three-month period – up 29.65%; past twelve-month period – up 126.23%; and year-to-date – up 30.78%
After last Friday's close, Tailored Brands' market cap was at $1.42 billion.
Price to Earnings (P/E) ratio was at 14.59.
The stock has a dividend yield of 2.52%.
The stock is part of the Services sector, categorized under the Apparel Stores industry.
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