Upcoming AWS Coverage on Shoe Carnival Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 23, 2017 / Active Wall St. announces its post-earnings coverage on Tailored Brands, Inc. (NYSE: TLRD). The Company disclosed its financial results for its fourth quarter and fiscal 2016 on March 08, 2017. The specialty apparel retailer missed top- and bottom-line expectations. Register with us now for your free membership at:

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One of Tailored Brands' competitors within the Apparel Stores space, Shoe Carnival, Inc. (NASDAQ: SCVL), announced on March 02, 2017, that its Q4 2016 earnings results will be released on Thursday, March 23, 2017 after the market close. The Company will host its quarterly conference call to discuss Q4 2016 and FY16 results at 4:30 p.m. ET. AWS will be initiating a research report on Shoe Carnival in the coming days.

Today, AWS is promoting its earnings coverage on TLRD; touching on SCVL. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended January 28, 2017, Tailored Brands' total net sales decreased 3.9% to $793.36 million compared to net sales of $825.66 million in Q4 FY15. Retail segment's net sales decreased by 3.9% due primarily to store closures as well as comparable sales decline. The Company's sales numbers lagged behind analysts' consensus of $811 million.

For Q4 FY16, Tailored Brands' gross margin was $302.12 million, down $9.1 million on a y-o-y basis, primarily due to a drop in retail segment net sales. As a percent of retail sales, retail gross margin increased 60 basis points to 39.0% primarily as a result of anniversarying an $11.0 million inventory write-down in Q4 FY15. On an adjusted basis, Tailored Brands reported total gross margin of $302.57 million, down $21.1 million on a y-o-y basis, while gross margin rate decreased 110 basis points to 38.1%.

Tailored Brands operating loss for Q4 FY16 was $18.9 million compared to an operating loss of $1.19 billion in Q4 FY15. The reported quarter GAAP operating loss includes $14 million non-cash impairment charge related to fixed assets in the Company's Macy's tuxedo stores. Q4 FY15 operating loss included approximately $1.18 billion of goodwill, intangible asset and other impairment charges primarily related to Jos. A. Bank.

Tailored Brands net loss for Q4 FY16 was $30.1 million compared to a net loss of $1.06 billion in Q4 FY15. Diluted loss per share was $0.62 compared to diluted loss per share of $21.86 in the prior year quarter. Excluding certain items, the Company's Q4 FY16 adjusted net loss was $0.19 per share compared to adjusted diluted loss per share of $0.30 in the year ago same period. The Company's adjusted numbers was below market expectations for a loss of $0.12 per share.

Segment Results

During Q4 FY16, Tailored Brands' net sales for Men's Wearhouse, its largest brand decreased 3.7% to $384.6 million, and comparable sales decreased 2.2% on a y-o-y basis. The decrease in comparable sales resulted primarily from a drop in both average transactions per store and net selling prices, which was partially offset by increases in units per transaction and higher rental services revenue.

For Q4 FY16, Tailored Brands' Jos. A. Bank comparable sales rose 3.6% primarily due to increases in both average transactions per store and units per transaction, which was partially offset by a decrease in average unit retail. Jos. A. Bank net sales for the reported quarter dropped 4.7% to $219.4 million due to significant store closures in 2016 as part of the Company's store rationalization program that more than offset comparable sales increases.

K&G's net sales for Q4 FY16 totaled $77.0 million, down 3.7% on a y-o-y basis and comparable sales fell 5.2% primarily due to lower average transactions per store partially offset by an increase in units per transaction and average unit retail.

Tailored Brands' Moores comparable sales for Q4 FY16 dropped 5.4% primarily due to decreases in both average transactions per store and units per transaction which was partially offset by an increase in average unit retail. However, total net sales for Moores declined 2.1% to $48.3 million primarily due to favorable currency fluctuations.

The Company's net sales for the Corporate Apparel segment declined 4.8% to $55.0 million primarily due to unfavorable currency fluctuations partially offset by higher US sales.

FY16 Summary

For FY16, Tailored Brands total net sales decreased 3.4% to $3.38 billion. Retail segment's net sales had decreased by 4.7% reflecting significant store closures under the Company's store rationalization program and declining comparable sales.

Tailored Brands' total gross margin was $1.44 billion for FY16, a decrease of $43.0 million, due primarily to the decrease in retail segment net sales. As a percent of total sales, total gross margin increased 20 basis points. The Company's operating income for the year was $132.8 million compared to an operating loss of $1.08 billion in the prior year.

Tailored Brands' net earnings for FY16 were $25.0 million, or $0.51 diluted per share, compared to a net loss of $1.03 billion, or diluted EPS of $21.26, last year.

Balance Sheet

Tailored Brands' total debt at the end of FY16 was approximately $1.6 billion. The Company's inventories decreased $67.0 million to $955.5 million at the end of FY16 primarily due to lower inventories at Jos. A. Bank as well as the weaker exchange rate from British pounds to US dollars.

The Company's cash flow from operating activities for FY16 was $242.6 million compared to $131.7 million in FY15. The increase was primarily due to working capital items including the impact of income tax refunds and lower inventories. Tailored Brands' capital expenditures for FY16 were $99.7 million compared to $115.5 million in the prior year.

On March 17th, 2017, Tailored Brands announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share payable on June 23, 2017 to shareholders of record at the close of business on June 13, 2017.

Outlook

For FY17, Tailored Brands is projecting to achieve diluted earnings per share in the range of $1.45 to $1.75. The Company expects comparable sales in FY17 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. Tailored Brands' are forecasting capital expenditures of approximately $90 million for FY17. The Company expects approximately net 10 store closures in FY17.

Stock Performance

At the close of trading session on Wednesday, March 22, 2017, Tailored Brands' stock price climbed 1.83% to end the day at $14.44. A total volume of 1.32 million shares were exchanged during the session. The stock currently has a market cap of $703.81 million and has a dividend yield of 4.99%.

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SOURCE: Active Wall Street