Tailored Brands Inc.’s second-quarter profits were nearly cut in half as the company continued to try to take its Jos. A. Bank chain into a less-promotional model.
The company’s net profits for the second quarter fell 47.7 percent to $25 million, or 51 cents a diluted share, from $47.8 million, or 98 cents, a year earlier.
However, adjusted earnings of 99 cents a share came in 6 cents ahead of the 93 cents analysts projected.
Sales for the three months ended July 30 declined 1.1 percent to $909.7 million from $920 million.
Comparable sales at the company’s Men’s Wearhouse chain rose 2.9 percent, while the Jos. A. Bank business comped down 16.3 percent, inline with the trend in the first quarter and the company’s projections.
Doug Ewert, president and chief executive officer of Tailored Brands, said: “Our second-quarter results showed improvement compared to the first quarter, yet reflected a challenging retail apparel spending environment as well as the continued transitioning of our Jos. A. Bank business. We continue to execute our transition plan for Tailored Brands and are on track to achieve our targeted $50 million of cost savings in fiscal 2016. Our store base rationalization is well underway. During the second quarter, we closed 86 stores, including 45 Jos. A. Bank factory stores and eight Men’s Wearhouse outlet stores, and we remain on schedule to close approximately 250 stores during fiscal 2016.”
The company will go over results with Wall Street on a conference call Thursday morning.