Tailored Brands Q4 GAAP loss per share $21.86
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The company will close approximately 250 stores during fiscal year 2016.
These non-cash charges related to Jos. A. Bank and a store rationalization program initiated in the fourth quarter. Fiscal fourth quarter 2015 adjusted loss per share was $0.30 excluding items not indicative of the Company's core operating results, certain items related to the acquisition and integration of Jos. A. Bank and non-cash impairment charges.
The fiscal year 2015 GAAP loss per share was $21.26 and adjusted EPS was $1.80 excluding non-operating items and the non-cash charges described above.
As reported in the company's preliminary results released on February 16, 2016, fourth quarter comparable sales increased 4.3% at Men's Wearhouse with clothing comps of 4.3% driven by an increase in average unit retail (or the net selling price per unit) and rental comps of 4.9%. Jos. A. Bank comparable sales decreased 31.9%.
K&G comparable sales increased 1.9% driven by an increase in units per transaction offset somewhat by lower average transactions per store. Moores comparable sales decreased 2.7% primarily driven by macro-economic conditions in Canada.
Doug Ewert, Tailored Brands chief executive officer stated, "While our fourth quarter and full year results were consistent with our revised guidance, we remain very disappointed by the weak Jos. A. Bank results. Our transition away from unsustainable promotions has proven significantly more difficult and expensive than we expected.
"We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business. Additionally, our Men's Wearhouse, Moores, and K&G brands continue to perform well, with profitability in line or ahead of our expectations."
"As part of our store rationalization program we plan to close approximately 250 stores during fiscal year 2016. The store closures fall into three categories.[break]
"First, we expect to close 80 to 90 full-line Jos. A. Bank stores which we believe have limited potential for meaningful profit improvement.
"Second, we will close all Jos. A. Bank (49) and Men's Wearhouse (9) outlet stores. We have determined that outlet stores, which collectively were not profitable, are not sufficiently differentiated enough from our core offerings and have not resonated with our customers.
"Lastly, we intend to close between 100 and 110 MW Tux stores. These closings are a continuation of our strategy of migrating tuxedo rentals to full line stores and reflective of our new partnership with Macy's, Tuxedo Shop @ Macy's.
"We have refined our Tuxedo Shop @ Macy's rollout schedule and now plan to open 166 stores in 2016 with the balance of 122 stores to be opened in 2017."
"We have also embarked on an extensive profit improvement program that we believe will reduce our expenses by approximately $50 million in 2016. This program includes reduced distribution costs, cost reductions in our organizational structure, payroll and employee benefit reductions and savings in occupancy and goods-not-for-resale.
"We estimate the cash costs to complete the store rationalization and profit improvement programs to be between $45 and $60 million for 2016. This is in addition to the non-cash charges recorded in 2015.
"Reflective of the many operational changes being made and the expectation for a slow recovery at Jos. A. Bank, we believe that fiscal year 2016 adjusted EPS will be in the range of $1.55 to $1.85. This includes comparable sales of negative mid-teens and significant product margin improvement for Jos. A. Bank." ■