The holiday season wasn’t too kind to Tailored Brands.
On Monday, the Fremont, Calif.-based men’s retailer updated its outlook for the fourth quarter and scaled back its earnings per share expectations based on lower than anticipated results at the Jos. A. Bank division during November and December.
The company said its overall comparable sales for the nine-week period ended Jan. 5 decreased 1.4 percent. This reflects a 3.6 percent decline a the flagship Men’s Wearhouse division, a 0.1 percent increase at Jos. A. Bank , a 2.1 percent increase at K&G and a 3.5 percent increase at Moores.
For the fourth quarter, the company is now expecting comparable sales at Jos. A. Bank to be flat versus previous guidance of an increase in the low-single digits. Comparable sales at Men’s Wearhouse are still expected to be down low-single digits, Moores to be up low-single digits and K&G to be flat-to-up slightly.
“Comparable sales at Jos. A. Bank were strong in November and early December but weakened during the third and fourth weeks of December, reflecting a deceleration in traffic,” said Dinesh Lathi, executive chairman. “As a result, we now expect fourth-quarter comparable sales at Jos. A. Bank to be flat instead of up low-single-digits.”
Lathi said the retailer is confident it can “successfully navigate these short-term challenges to our business and we have continued confidence in our strategic initiatives to drive growth over the long term.”
The company now expects to report fourth-quarter adjusted diluted loss per share in the range of 29 cents to 34 cents compared to prior guidance of adjusted diluted loss per share in the range of 24 cents to 29 cents.
Full-year fiscal 2018 adjusted earnings per diluted share are now expected to be in the range of $2.25 to $2.30, compared to prior guidance of adjusted earnings per diluted share in the range of $2.30 to $2.35.
Shares of the company sank nearly 15 percent in early trading following the release.