Upcoming AWS Coverage on Chico's FAS Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 16, 2016 / Active Wall St. announces its post-earnings coverage on Tailored Brands, Inc. (NYSE: TLRD). The Company posted its first quarter fiscal 2016 earnings results on December 07, 2016. The suit retailer surpassed earning and sales expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Tailored Brands' competitors within the Apparel Stores space, Chico's FAS, Inc. (NYSE: CHS), reported on November 22, 2016, its financial results for the fiscal 2016 third quarter and thirty-nine weeks ended October 29, 2016. AWS will be initiating a research report on Chico's FAS in the coming days.

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

http://www.activewallst.com/registration-3/?symbol=TLRD

http://www.activewallst.com/registration-3/?symbol=CHS

Earnings Reviewed

For the quarter ended on October 29 2016, Tailored Brand's total net sales decreased 2.1%, or $18.5 million, to $846.9 million. The Company's retail segment net sales decreased 4.7%, or $37.7 million, to $763.7 million for Q3 2016. Corporate apparel sales increased 30.0%, or $19.2 million, to $83.2 million in the reported quarter. The company's net sales numbers topped analysts' expectations of $833 million.

For Q3 2016, Tailored Brands' 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%. The company's operating income for the reported quarter was $61.1 million compared to an operating loss of $36.4 million last year, which included a trade name impairment charge of $90.1 million.

Tailored Brands' Q3 2016 earnings totaled $28.4 million compared to net loss of $27.15 million in the year ago same quarter. GAAP diluted earnings per share totaled $0.58 compared to a loss of $0.56 in the same period a year ago. During the reported quarter, adjusted diluted EPS was $0.68 excluding certain items compared to adjusted diluted EPS of $0.50 in Q3 2015. The earnings results also beat analysts' estimates of $0.55 per share.

Segment Results

During Q3 2016, Tailored Brands' net sales at its largest brand, Men's Wearhouse, decreased 0.8% to $461.8 million, while comparable sales increased 0.1% from Q3 2015. The company's Jos. A. Bank net sales declined 16.6% on a y-o-y basis to $166.0 million, while its comparable sales for the reported 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.

For Q3 2016, K&G comparable sales decreased 2.6% to $70.9 million, 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 the Company's Canadian retail brand, Moores, increased 1.2% to $56.5 million. Moores' comparable sales dropped 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. Tailored's Corporate Apparel segment had a sales increase of 30.0% primarily driven by the rollout of a large new uniform program.

Liquidity and Capital Resources

Tailored Brands' total debt at the end of Q3 2016 was approximately $1.6 billion. The Company made its scheduled $1.8 million payment on its term loan during the reported quarter. Additionally, during Q3 2016, 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 its revolving credit facility at the end of Q3 2016.

Tailored Brands' inventories decreased $12.3 million to $1.05 billion at the end of Q3 2016 from $1.06 billion at the end of the Q3 2015, primarily due to the weaker exchange rate from British pounds to US dollars. Excluding this foreign exchange translation impact, total inventories were a few million dollars higher than last year.

Cash flow from operating activities through Q3 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 Q3 2016 were $80.6 million compared to $86.4 million in the prior year.

Store Update

Tailored Brands stated that it is on track to achieve its targeted $50 million of cost savings in FY16. The company also provided update on its store base rationalization initiative. During Q3 2016, Tailored Brands closed 83 stores, including 74 Men's Wearhouse and Tux stores, bringing its total year-to-date closures to 187 stores. The company expects to close approximately 63 stores in the Q4 2016 for a total of approximately 250 store closures during FY16.

CFO Change

In a separate press release on December 13th, 2016, Tailored Brands announced the appointment of Jack Calandra as executive Vice President, Chief Financial Officer, and Treasurer, effective January 03, 2017, and he will report to Tailored Brand's President and Chief Executive Officer, Doug Ewert.

Mr. Calandra joins Tailored Brands from The Gap, Inc. where he was most recently Senior Vice President, Corporate Finance and Investor Relations. His career at The Gap spanned more than ten years and included roles as CFO of the multi-billion dollar Banana Republic Global division and CFO of Gap Direct, the ecommerce division, which achieved significant growth and profitability under his leadership.

Mr. Calandra succeeds Tailored Brand's current CFO, Jon Kimmins, who will be leaving to pursue other interests. Mr. Kimmins will remain with the Company through the end of this calendar year and will assist with Mr. Calandra's transition through March 2017.

Stock Performance

At the close of trading session on Thursday, December 15, 2016, the stock closed the trading session at $27.38, slightly falling 0.26% from its previous closing price of $27.45. A total volume of 1.02 million shares have exchanged hands. Tailored Brands' stock price rallied 54.27% in the last month, 65.77% in the past three months, and 135.39% in the previous six months. Additionally, the stock has skyrocketed 94.63% since the start of the year. The company's shares have a dividend yield of 2.63% and currently have a market cap of $1.33 billion.

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