Tailored Brands, Inc. (NYSE:TLRD) Q2 2019 Earnings Conference Call - Final Transcript

Sep 11, 2019 • 05:00 pm ET


Tailored Brands, Inc. (NYSE:TLRD) Q2 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the Tailored Brands Q2 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]

Please note this conference is being recorded. I'd now turn the conference over to your host, Julie MacMedan, Vice President, Investor Relations. Miss. MacMedan, you may begin.

Julie MacMedan

Thank you and good afternoon everyone. Welcome to Tailored Brands second quarter 2019 results conference call. This call is being webcast and a replay will be available on the company's Investor Relations website, ir.tailorbrands.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 Form 10-Q to understand these risks and uncertainties. You could access all of these reports on the Tailored Brands IR website.

In addition, the information on this call speaks only as of today September 11, 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 president and CEO, Dinesh Lathi and our CFO, Jack Calandra. I would now like to turn the call over to Dinesh.

Dinesh Lathi

Thank you Julie, and good afternoon everyone. Earlier today, we released our results for the second quarter of 2019. And I'm pleased to report that our earnings per share of $0.82 exceeded the high end of the guidance range we provided in June of $0.65 to $0.70. As Jack will describe in greater detail, our outperformance on the bottom-line was the result of topline sales that were in-line with guidance, coupled with expense favorability, primarily in lower marketing spend and lower incentive compensation costs.

While delivering at or above guidance on the top and bottom line is important, and reflects the substantial and collective effort of our nearly 20000 colleagues, no one at Tailored Brands will be satisfied until we have transformed our customer facing experience to one that can generate sustainable bottom and topline growth.

Back in March, I indicated that we had work ahead of us to transform our customer facing experience and that the transformation would take time. Our Q2 comps and our outlook for Q3 reflect the facts that we are in the midst of a transformation, that transformations take time and that we are executing our transformation in a challenging retail environment. Despite these challenges, we are confident in and excited