Research Desk Line-up: Express Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 27, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tailored Brands, Inc. (NYSE: TLRD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TLRD, following the Company's posting of its first quarter fiscal 2017 financial results on June 07, 2017. The specialty apparel retailer's earnings surged 33%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Express, Inc. (NYSE: EXPR) for due-diligence and potential coverage as the Company announced on June 01, 2017, its financial results for Q1 2017. Register for a free membership today, and be among the early birds that get access to our report on Express when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TLRD; also brushing on EXPR. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the fiscal first quarter ended April 29, 2017, Tailored Brands' total net sales decreased 5.5% to $782.9 million, lagging behind analysts' expectations of $791.5 million. The Company's retail segment's net sales decreased by 5.3% to $725.3 million, due primarily to the impact of the previous year's store closures as well as comparable sales declines. Tailored Brands' Corporate apparel segment's net sales decreased 8.0% to $57.6 million, primarily due to unfavorable currency fluctuations and partially offset by higher US sales.

During Q1 2017, Tailored Brands' comparable sales at Men's Wearhouse decreased 3.1%. The decrease in comparable sales resulted primarily from a decline in transactions partially offset by an increase in average unit retail. The Company's Jos. A. Bank comparable sales increased 3.5% primarily due to an increase in transactions that more than offset a decrease in average unit retail. For Q1 2017, K&G comparable sales decreased 7.4% primarily due to lower transactions partially offset by an increase in units per transaction and average unit retail.

During Q1 2017, Tailored Brands' total gross margin was $332.4 million, a decrease of $19.4 million, due primarily to a decrease in retail segment net sales. As a percent of sales, total gross margin remained flat at 42.5%. The Company's GAAP retail gross margin was $316.7 million for Q1 2017, declining $17.0 million on a y-o-y basis. On an adjusted basis, retail gross margin decreased $15.7 million, but as a percent of retail sales increased 30 basis points to 43.9%.

For Q1 2017, Tailored Brands' advertising expense decreased $5.7 million to $42.3 million and decreased 40 basis points as a percent of total sales, driven primarily by reductions in television advertising reflecting a mix shift to digital advertising as well as the timing of marketing campaigns.

Tailored Brands' GAAP operating income for both Q1 2017 and Q1 2016 were $31.0 million. On an adjusted basis, the Company's operating income for the reported quarter was $48.2 million compared to operating income of $47.5 million in the prior year's corresponding quarter

For Q1 2017, Tailored Brands' GAAP net earnings were $1.8 million compared to net earnings of $1.6 million for Q1 2016. The Company's diluted EPS was $0.04 compared to diluted EPS of $0.03 in the prior year's same quarter. On an adjusted basis, Tailored Brands' net earnings for Q1 2017 were $13.3 million compared to net earnings of $13.9 million for Q1 2016. The Company's diluted EPS was $0.27 compared to diluted EPS of $0.29 in the prior year's corresponding quarter and ahead of Wall Street's expectations of $0.20 per share.

Balance Sheet Highlights

Tailored Brands' cash and cash equivalents at the end of Q1 2017 were $66.6 million, an increase of $30.2 million compared to the end of Q1 2016. There were no borrowings outstanding on the Company's revolving credit facility at the end of the reported quarter.

Tailored Brands' inventories decreased $92.5 million to $984.2 million at the end of Q1 2017 compared to Q1 2016, primarily due to lower inventories at Jos. A. Bank. In addition, inventories were lower at its corporate apparel business.

Tailored Brands' total debt at the end of Q1 2017 was approximately $1.6 billion. The Company made its scheduled $1.8 million payment on its term loan during the reported quarter. Additionally, during Q1 2017, the Company repurchased and retired $7.4 million in face value of its senior notes. Subsequent to quarter end, the Company repurchased and retired $17.5 million in face value of its senior notes for a total of $24.9 million year-to-date.

Tailored Brands' cash flow from operating activities for Q1 2017 was $33.4 million compared to $46.4 million in Q1 2016. The Company's capital expenditures for the reported quarter were $17.8 million compared to $30.3 million in the prior year's same quarter.

On June 16, 2017, Tailored Brands announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on September 22, 2017, to shareholders of record at the close of business on September 12, 2017.

Outlook

For FY17, Tailored Brands is forecasting to achieve diluted earnings per share in the range of $1.37 to $1.67, and adjusted diluted earnings per share of $1.60 to $1.90. The Company expects comparable sales for Men's Wearhouse to be down low-single digits, Jos. A. Bank to increase mid-single digits, and Moores and K&G to be down mid-single digits.

During Q2 2017, Tailored Brands plans to close all 170 tuxedo shops at Macy's. In addition, the Company now expects approximately net 20 store closures compared to its previous outlook of net 10 store closures, with the increase due to additional Jos. A. Bank store closures.

Stock Performance

At the close of trading session on Monday, June 26, 2017, Tailored Brands' stock price slightly rose 0.80% to end the day at $10.07. A total volume of 1.34 million shares were exchanged during the session. The Company's shares are trading at a PE ratio of 19.55 and have a dividend yield of 7.15%. At Monday's closing price, the stock's net capitalization stands at $504.91 million.

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