By  on June 13, 2018

Shares of Tailored Brands Inc. dropped 19.9 percent after the company reported first-quarter results, even though it managed to beat Wall Street’s consensus estimates.For the three months ended May 5, the parent company of Men’s Wearhouse and Jos. A. Bank said it had net income of $13.9 million, or 27 cents a diluted share, from net income of $1.8 million, or 4 cents, a year ago. Diluted earnings per share were 50 cents for the quarter on an adjusted basis. Net sales totaled $818 million, a 4.5 percent increase from $782.9 million a year ago. Excluding income from rental and alteration services, as well as its corporate apparel business, retail sales were up 5.2 percent to $613.6 million from $583.6 million. Comparable-store sales rose 2.1 percent. And the company said its corporate apparel net sales rose 9.6 percent, or $5.5 million mostly due to the impact of a stronger British pound this year. By brand segment, Men’s Wearhouse comps rose 3.2 percent, while comps at Jos. A. Ban rose 1.2 percent. Comps at Moores were up 1.8 percent, but were down 1.7 percent at K&G.Wall Street was expecting diluted EPS of 48 cents on sales of $794.1 million.Given the beat on first-quarter results, investors might not have been happy with the company’s reaffirmation of guidance for the year.Tailored Brands said it expects adjusted diluted EPS in the range of $2.35 to $2.50 for fiscal 2018. Wall Street was projecting EPS at $2.49, which was already at the high end of the company’s guidance range. The men’s apparel firm said it also expects comparable sales for Men’s Wearhouse and Jos. A. Bank to be “positive low-single-digits. Moores' comparable sales to be flat-to-up slightly and K&G comparable sales to be flat-to-down slightly.”Tailored Brands also said it would close 10 stores in 2018 as part of its review of its real estate portfolio.Shares of Tailored Brands closed the day’s trading session down 2.8 percent to $33.45, then plunged 19.9 percent to $26.78 in after-hours trading. The company report first-quarter results after the markets closed for the day.Chief executive officer Doug Ewert said, “Our improved first-quarter results reflect continued execution on our growth strategies.”The ceo said the brand campaigns are resonating with new and existing customers, and that the company is growing its custom business. It is also now offering a standard three-week delivery for its Made-in-the-USA custom suits.The ceo also said, “We also continued to strengthen our balance sheet. During the quarter, we refinanced our term loan on favorable terms, extending its maturity to 2025, and we reduced our total debt by $110 million.”

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