Tailored Brands, Inc. (NYSE:TLRD) Q3 2017 Earnings Conference Call Transcript

Dec 06, 2017 • 05:00 pm ET

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Tailored Brands, Inc. (NYSE:TLRD) Q3 2017 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Tailored Brands Fiscal 2017 Third Quarter Results Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this call is being recorded.

It is now my pleasure to introduce your host, Julie MacMedan, IR at Tailored Brands. Thank you, Ms. MacMedan, you may begin.

Executive
Julie MacMedan

Thank you, and good afternoon, everyone. We appreciate your participation in the Tailored Brands' conference call to discuss fiscal 2017's third quarter results. There will be a replay of today's call on the Company's IR website, which is accessible at ir.tailoredbrands.com. Additionally, a recorded telephonic replay will be available until December 13th. The information for accessing this replay feature is in the press release we distributed earlier today. Please note that information on this call speaks only as of today, December 6, 2017, and therefore, you're advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading.

(Forward-Looking Cautionary Statements)

Throughout this conference call, management will be discussing results on an adjusted basis. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures and our explanation of why the non-GAAP financial measures may be useful are discussed in today's earnings release.

With me today are Doug Ewert, CEO, who will provide his perspective on our third quarter results and review our strategic initiatives; and Jack Calandra, CFO, who will provide a more in-depth review of our financial results and outlook. I would now like to turn the call over to Doug.

Executive
Douglas Ewert

Thank you, Julie, and good afternoon, everyone. Today, I'd like to give you my perspective on Q3 results and share with you the progress we're making on numerous initiatives to strengthen Tailored Brands.

With regard to our third quarter results, we reported our second consecutive quarter of positive comparable sales for our retail segment as a whole, in spite of an unfavorable 70 basis point impact from the hurricanes. We also posted higher profits in the third quarter, reflecting the benefits of our cost savings initiatives, continued disciplined expense management, and increased marketing efficiencies. Our strong third quarter results and a good start to the fourth quarter, support our increased fiscal 2017 adjusted EPS guidance of $2.03 to $2.08 per share.

To give you more color on trends in our business, I'll discuss comp sales by brand. Men's Wearhouse comp sales were down 1%, which includes an estimated unfavorable impact of 60 basis points from the hurricanes. As we told you in September, we got off to a slow start in August. I'm pleased to report that comps improved throughout the quarter, and we closed with a strong positive October comp. Clothing comp was up slightly for the quarter, driven by an increase in transactions and UPT, somewhat offset by a decrease in AURs. We're pleased that transactions turned positive this quarter, which is very encouraging for Men's Wearhouse. We believe an