Tailored Brands (TLRD - Get Report) shares were down nearly 3% to $5.38 Thursday after the specialty retailer beat Wall Street's first-quarter earnings and sales expectations, but offered weak second quarter guidance.
The Houston-based company, which owns such brands as Men's Wearhouse, Jos. A Bank, and Joseph Abboud, reported net earnings for the period of $7.1 million, or 14 cents a share, compared with $13.9 million, or 27 cents a share, a year ago. Adjusted earnings came to 21 cents a share. Analysts were expecting earnings of 15 cents.
Revenue totaled $781.4 million, down 4.5% from a year ago, but beat analysts' expectations of $776 million.
For the second quarter, Tailored Brands is expecting earnings of 65 to 70 cents a share. Wall Street is expecting earnings of 81 cents a share.
Retail net sales decreased 4% primarily due to the decrease in retail segment comparable sales of 3.2%. Corporate apparel net sales fell 10.1%, or $6.4 million, primarily due to lower replenishment demand in the U.S. as well as the impact of a weaker British pound this year compared with last year.
"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," Dinesh Lathi, president and CEO, said in a statement.
First-quarter 2019 results include $4.4 million of charges, such as $3.1 million in consulting costs, $1.1 million in severance costs and $200,000 in lease termination costs. Retail gross margin was $305.4 million, a decrease of $23.3 million.