Tailored Brands Q1 sales decline by 60.4 percent
11 Jun 2020
Tailored Brands, Inc. reported total retail comparable sales up 2.4 percent and all brands positive in February, however, the company said, in response to the Covid-19 pandemic, on March 17, Tailored Brands closed all stores and on March 20 it closed all e-commerce fulfilment centres in the U.S. and Canada. The company’s e-commerce fulfilment centres reopened March 31 and total first quarter e-commerce sales, including rental services, were down 31.9 percent versus the first quarter of last year. The company added that given that store sales represent the vast majority of total net sales, this represented a significant drag on total first quarter net sales, which were down 60.4 percent versus the first quarter of last year.
Commenting on the preliminary first quarter update, Tailored Brands President and CEO Dinesh Lathi said in a statement: “While many of these actions were difficult, such as furloughing/temporarily laying off more than 95 percent of our employees and implementing salary reductions, they were necessary given the impact of the disruptions from the Covid-19 pandemic on our business.”
Tailored Brands provides current trading update
On May 7, the company began to open stores in the U.S. and Canada and had 634 stores open as of June 5. The company further said that for the week ended June 5, for stores open at least one week, comparable sales at Men’s Wearhouse were down about 65 percent, at Jos. A. Bank down about 78 percent, and at K&G down about 40 percent. For the second quarter-to-date through June 5, total e-commerce sales, including rental services, are down about 32 percent.
In the second quarter, the company sold one distribution centre and one owned store for total net proceeds of 13.4 million dollars.