Tailored Brands, Inc. (NYSE:TLRD) Q4 2018 Earnings Conference Call - Final Transcript
Mar 13, 2019 • 05:00 pm ET
Greetings and welcome to Tailored Brands' Fourth Quarter 2018 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to you Julie MacMedan, Vice President of Investor Relations. Thank you. Please begin.
Thank you and good afternoon, everyone. Welcome to Tailored Brands' fourth quarter 2018 results conference call. This call is being webcast and a replay will be available on the Company's Investor Relations website ir.tailoredbrands.com.
Please note that comments made during the conference call contain forward-looking statements within the meaning of the United States federal securities laws. These statements are subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond our control. Any forward-looking statements are not guarantees of future performance and actual results may differ materially from those in such forward-looking statements. Please refer to today's earnings release, our annual report on form 10-K and quarterly reports on forms 10-Q to understand these risks and uncertainties. You can access all these reports on the Tailored Brands' IR website. In addition, the information on this call speaks only as of today, March 13, 2019, and we assume no obligation to publicly update or revise our forward-looking 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 our Executive Chairman, Dinesh Lathi and our CFO, Jack Calandra. I would now like to turn the call over to Dinesh.
Thank you, Julie, and good afternoon, everyone. Earlier today we released our results for the fourth quarter and full year of 2018. While our full year earnings per share of $2.31 came in above our revised guidance, our comp sales trends in Q4 were disappointing and unacceptable relative to our view of the potential of this business. While uncontrollable macro factors like stock market volatility and the temporary government shutdown undoubtedly played some role in that softness, my comp level observation six months after the Board asked me to step in is that the softness has roots in a degree of historical under investment in keeping pace with an evolving customer.
Creating a business that can consistently generate positive profitable comps will not happen overnight. It will be a process and we have already started taking decisive action to move us in that direction. We think it's important that investors know the following, that the process will necessarily be characterized by meaningful changes in investment, that thanks to the hard work of this team, we have an improved balance sheet and strong cash generation that provides investment flexibility. And finally, that we have a Board and a leadership team that is committed to the process because they passionately believe in the potential of this business and what we do for the customer.
In a moment