We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tailored Brands, Inc. is a men’s retailer that specializes in suits and tuxedo rentals, and is headquartered in Houston, Texas. The company used to be known as The Men’s Wearhouse, and provides customers with a wide range of suiting options including suit separates, sport coats, slacks, dress shirts, sportswear and outerwear, and shoes and accessories.
Q1 Guidance Hurts TLRD
After Tailored Brands cut its outlook for the fourth quarter back in January, its Q4 results were mostly expected.
An adjusted loss of 28 cents per share came in slightly higher than the Zacks Consensus, but adjusted revenues of $770 million missed our consensus estimate and declined 10% year-over-year.
Men’s Wearhouse comparable sales for the quarter decreased 3.2%, while JoS A. Bank saw comps fall 0.5%.
As a result, TLRD cut their outlook once again for the first quarter, which was not expected. The retailer now expects adjusted earnings of $0.10 to $0.15 per share, well below analysts' $0.50 forecast.
Same-store sales at both Men’s Wearhouse and JoS A. Bank is expected to be be down 3% to 5% due to “significant headwinds” like the late Easter holiday, foreign exchange impacts, and current business trends.
Many analysts cut their price targets following this earnings release. For instance, Susan Anderson at B. Riley FBR cut TLRD from $20 to $11 and downgraded the stock to “neutral” from “buy.”
Analysts have since turned more bearish on Tailored Brands, with two cutting estimates in the last 60 days for the current fiscal year. Earnings are expected to decline roughly 17.3% for the year, and the Zacks Consensus Estimate has dropped 55 cents during that same time period from $2.46 to $1.91 per share.
This sentiment has stretched into 2021. While earnings could grow almost 12%, our consensus estimate has dropped significantly in the past two months.
TLRD is now a Zacks Rank #5 (Strong Sell).
Shares of the retailer have fallen over 46% since January. In comparison, the S&P 500 is almost 16% year-to-date.
Bottom Line
Tailored Brands’ management team does have a few strategies in place that, if successful, could help bolster its e-commerce presence and the company’s move towards fresher, more modern product.
TLRD does boast a forward P/E of just under 4X and a dividend yield of 9.7%, but neither of these two factors mean much of anything if the company won’t be able to increase growth on all fronts.
If you’re an investor interested in adding a specialty retail stock to your portfolio, consider Lululemon (LULU - Free Report) . Shares of Zacks Rank #1 (Strong Buy) LULU have gained about 40% since January; earnings are expected to grow 20% this fiscal year, with 14 analysts revising their estimates upwards in the last 60 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Bear of the Day: Tailored Brands (TLRD)
Tailored Brands, Inc. is a men’s retailer that specializes in suits and tuxedo rentals, and is headquartered in Houston, Texas. The company used to be known as The Men’s Wearhouse, and provides customers with a wide range of suiting options including suit separates, sport coats, slacks, dress shirts, sportswear and outerwear, and shoes and accessories.
Q1 Guidance Hurts TLRD
After Tailored Brands cut its outlook for the fourth quarter back in January, its Q4 results were mostly expected.
An adjusted loss of 28 cents per share came in slightly higher than the Zacks Consensus, but adjusted revenues of $770 million missed our consensus estimate and declined 10% year-over-year.
Men’s Wearhouse comparable sales for the quarter decreased 3.2%, while JoS A. Bank saw comps fall 0.5%.
As a result, TLRD cut their outlook once again for the first quarter, which was not expected. The retailer now expects adjusted earnings of $0.10 to $0.15 per share, well below analysts' $0.50 forecast.
Same-store sales at both Men’s Wearhouse and JoS A. Bank is expected to be be down 3% to 5% due to “significant headwinds” like the late Easter holiday, foreign exchange impacts, and current business trends.
Many analysts cut their price targets following this earnings release. For instance, Susan Anderson at B. Riley FBR cut TLRD from $20 to $11 and downgraded the stock to “neutral” from “buy.”
Estimates Keep Falling
Tailored Brands, Inc. Price and Consensus
Tailored Brands, Inc. Price and Consensus | Tailored Brands, Inc. Quote
Analysts have since turned more bearish on Tailored Brands, with two cutting estimates in the last 60 days for the current fiscal year. Earnings are expected to decline roughly 17.3% for the year, and the Zacks Consensus Estimate has dropped 55 cents during that same time period from $2.46 to $1.91 per share.
This sentiment has stretched into 2021. While earnings could grow almost 12%, our consensus estimate has dropped significantly in the past two months.
TLRD is now a Zacks Rank #5 (Strong Sell).
Shares of the retailer have fallen over 46% since January. In comparison, the S&P 500 is almost 16% year-to-date.
Bottom Line
Tailored Brands’ management team does have a few strategies in place that, if successful, could help bolster its e-commerce presence and the company’s move towards fresher, more modern product.
TLRD does boast a forward P/E of just under 4X and a dividend yield of 9.7%, but neither of these two factors mean much of anything if the company won’t be able to increase growth on all fronts.
If you’re an investor interested in adding a specialty retail stock to your portfolio, consider Lululemon (LULU - Free Report) . Shares of Zacks Rank #1 (Strong Buy) LULU have gained about 40% since January; earnings are expected to grow 20% this fiscal year, with 14 analysts revising their estimates upwards in the last 60 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>