Menswear giant Tailored Brands has exited the corporate dress business.
The company, whose brands include Men's Wearhouse and Jos. A. Bank, said Monday it has closed on the sale of its corporate apparel business to a group led by the existing corporate apparel U.K. executive team for $62 million in cash. The company will use proceeds from the deal to reinvest in its core business and to pay down debt.
“The consummation of this transaction supports our previously stated strategy to focus on our core retail business in the U.S. and Canada while reducing debt,” said Tailored Brands president and CEO Dinesh Lathi. “We thank the management team and employees for their many contributions and wish them well.”
The company also updated its guidance for the second quarter. It now expects second-quarter earnings per share of 64 cents to 66 cents and adjusted earnings per share of 78 cents to 80 cents, up from prior guidance of 65 cents to 70 cents. Net sales are expected to range from $787 million to $789 million. Analysts’ estimates are for earnings per share of 70 cents and sales of $790 million.
“We are pleased to provide updated guidance for second quarter adjusted EPS that is above our previous outlook,” Lathi said. “We remain focused on improving our performance by transforming our customer experience through three key strategic initiatives: delivering personalized products and services, inspiring and seamless experiences in and across every channel, and brands that stand for more than just price.
Tailored Brands operates more than 1,400 locations in the U.S. and Canada as well as branded e-commerce websites. Its banners include Men's Wearhouse, Jos. A. Bank, Joseph Abboud, Moores Clothing for Men and K&G.