Tailored Brands stock rallies after Q1 update; sales down 60%

Tailored Brands stock rallies after Q1 update; sales down 60%

Tailored Brands Inc. shares rallied 13% in the extended session Wednesday after the apparel retailer said it had taken “decisive actions” to manage its liquidity and requested an extension to file quarterly results because of the “disruption” caused by the coronavirus pandemic. Some 44% of its stores, which include Men’s Wearhouse and Jos. A. Bank, have reopened, it said. As of June 5, Tailored Brands had $201 million in cash and equivalents, it said, excluding $93.5 million of restricted cash. First-quarter sales were down 60% to $286.7 million due to the pandemic, it said. Trends such as “casualization”, online sales and digital marketing have accelerated during this time, the company said. “While it’s still early and the operating environment remains highly uncertain, we anticipate sales will rebuild gradually during the remainder of the year,” Chief Executive Dinesh Lathi said in the statement. “We are planning the business conservatively and will continue to operate with discipline to preserve our liquidity as we navigate this uncertain environment.” Some of the actions to shore up liquidity included accessing $310 million in additional borrowings from its credit facility, cutting or deferring expenses, extending payment terms with landlords and suppliers, and furloughing salespeople. Shares of Tailored Brands ended the regular trading day down 12%.

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