Tailored Brands Inc. (fka TLRDQ)

[MjMilo]

Tailored Brands trashed after dismal Q3 guidance
Sep. 11, 2019 5:48 PM ET|About: Tailored Brands, Inc. (TLRD)|By: Carl Surran, SA News Editor

Tailored Brands (NYSE:TLRD) -25.8% after-hours after reporting mixed Q2 results, suspending its quarterly dividend and warning of lower profits in Q3.

Overall Q2 revenues fell 4.1% Y/Y to $789.5M, including a 4.9% decline at Men's Wearhouse to $423.5M and a 3.7% drop at Jos. A. Bank to $166.1M.

End-of-quarter cash and cash equivalents fell 71% Y/Y to $19.5M, inventories increased 7% to $847M, and operating cash flow fell 85% to $33.3M; total debt slipped by $61M to $1.2B.

For Q3, TLRD forecasts adjusted EPS of $0.40-$0.45, compared with analyst consensus of $0.88, with across the board sales declines including a 3%-5% drop in same-store sales at Men's Wearhouse and a 2%-4% decline at Jos. A. Bank.

The company says it is halting the dividend so it can redeploy capital to accelerated debt repayment and share repurchases.

TLRD says it expects a net closure of seven stores across Men's Wearhouse and Jos. A. Bank for the quarter.