There’s a major change in the cards for Tailored Brands.
On Tuesday, the Fremont, Calif.-based brand said Doug Ewert, its chief executive officer, will be retiring from his position and his post on the board on Sept. 30. At the same time, Bruce Thorn resigned from his position as president and chief operating officer, effective Aug. 31. Thorn is reportedly leaving to pursue another opportunity.
Dinesh Lathi, non-executive chairman of the board, has been appointed executive chairman, effective immediately. As a result of his elevation, the board appointed Theo Killion as lead independent director.
Tailored Brands said the “to ensure an orderly transition,” Ewert will serve as a strategic adviser to the company until the end of the calendar year. The board is initiating “a comprehensive search process” to identify a successor ceo.
The leadership change came at the same time the company issued a preliminary estimate for the second quarter, ended Aug. 4. Its earnings will be released on Sept. 12.
Tailored Brands Inc. now expects to report GAAP diluted earnings per share in the range of 95 cents to 97 cents, and adjusted diluted EPS in the range of $1.05 to $1.07 for the second quarter. This includes an $8.1 million loss on extinguishment of debt related to the partial redemption of $175 million of the company’s senior notes, $4.4 million of costs related to the closure of a rental product distribution location and a $200,000 million unfavorable final working capital adjustment related to the previously announced divestiture of the MW Cleaners business.
Regarding his impending departure, Ewert said in a statement: “It has been my privilege to lead the Tailored Brands team and I am proud of everything that we have accomplished. During my tenure as ceo we have grown revenues from $2.4 billion to $3.3 billion and built the custom suit business into a driver of sales and profitability. We have a compelling business with brands that can win in today’s market and I believe that now is the right time to begin the succession process to hand over the reins to new leadership. I am eager to work with the board and management team to ensure a smooth transition and I look forward to my next chapter. I would also like to thank Bruce for his contributions as he begins the next phase of his career.”
Ewert did not respond to a request for further comment on Tuesday.