Tailored Brands Inc (NYSE:TLRD) reported upbeat earnings for its second quarter. However, the Fremont, Calif.-based company issued weak third-quarter earnings guidance and says it expects comparable sales in all segments to decrease. The company also suspended its quarterly dividend.
For the second quarter ended August 3, TLRD reported GAAP diluted earnings per share of $0.68 and adjusted diluted earnings per share of $0.82, compared to GAAP diluted earnings per share of $0.97 and adjusted diluted earnings per share( of $1.07 last year.
Second-quarter 2019 results exclude net charges of $10.4 million comprised of $11.3 million of charges related to our multi-year cost savings and operational excellence programs (consisting of $6.1 million in consulting costs, $2.9 million related to the closure of a distribution center in Canada, $2.2 million in severance costs and $0.1 million in lease termination costs), offset by a $0.9 million net favorable adjustment primarily related to a derivative instrument entered into for the corporate apparel business.
Said CEO Dinesh Lathi, "We were pleased to deliver second quarter comparable sales in line with our guidance and adjusted earnings per share above our guidance.
"We are also seeing early customer response to our initiatives, which gives us confidence that unleashing the potential for this business to generate healthy positive comps lies in our transformational strategies of providing i) personalized products and services, ii) inspiring and seamless experiences in and across every channel, and iii) brands that stand for more than just price."
Shares in TLRD slumped $1.76, or 24.6%, to $5.39
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