Tailored Brands Inc (NYSE:TLRD) posted fiscal first quarter revenue figures that beat street expectations thanks to strong sales from retailers Jos A Bank and Moores, according to results posted after the bell on Wednesday.
California-based Tailored Brands is the largest men’s formalwear provider in the US and Canada with over 1,400 locations under the brand names Men’s Wearhouse, Joseph Abboud and K&G, in addition to Jos A Bank and Moores.
Total revenue for the three-month period ended May 4, 2019 was $781.4 million against analyst expectations of $776 million. Sales from Jos A Bank were around $167 million, while Moores added another $42.3 million.
Net earnings for the period were $7.1 million or $0.14 on a GAAP basis, compared to $13.9 million or $0.27 during the year-ago quarter. Analysts has estimated around $0.15 per share.
“I am pleased to report that we delivered first quarter adjusted EPS that exceeded our guidance, with Jos. A. Bank and Moores comparable sales ahead of expectations,” said Tailored Brands CEO Dinesh Lathi.
Lathi said the company made “good progress” in the first quarter, with its custom business posting a strong quarter in response to customer demand for personalized products and services.
The CEO also highlighted new advertising programs for Men’s Wearhouse and Jos A Bank. “As we seek an optimized creative mix between promotional and storytelling advertising and an enhanced channel mix between broadcast and digital, we launched new brand campaigns for both Men’s Wearhouse and Jos. A. Bank that are being leveraged across channels,” said Lathi.
E-commerce drives revenue
Lathi also highlighted the company's e-commerce efforts that contributed to a growth in average order values.
"Our e-commerce team executed a robust portfolio of user experience and personalization tests, several of which have been pushed into production to increase conversion and average order values," he said.
E-commerce is a crucial tool for retailers to gain insights into its customers, according to Ronen Luzon, founder and CEO of MySize Inc (NASDAQ:MYSZ), the maker of a mobile app aimed at helping online shoppers size their clothes correctly and cut down on returns.
"People today want to get the right size on their first time purchase and get the right fitted garment when they are looking for custom-made items," he said. "Even more important, when a consumer is renting a tuxedo for a special event, the sizing and fit is crucial."
Tailored Brands said it is in the early stages of executing strategic initiatives and evaluating cost saving opportunities, according to a release accompanying its results.
Shares fell 1.4% in Thursday morning trading to sit at $5.47 in New York.
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