NEW YORK, NY / ACCESSWIRE / December 14, 2018 / Textile and apparel stocks Tailored Brands and Hanesbrands were both in the red on Thursday. Shares of the former fell on a concerning guidance slash while Hanesbrands had no news to explain the stock’s losses.
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Tailored Brands, Inc.
Tailored Brands, Inc. shares closed down 29.84% on Thursday with about 17.4 million shares traded. The stock slumped to a new 52-week low of $13.77 after reporting third-quarter results. While comparable sales growth and earnings both beat expectations, it was a guidance slash that had Wall Street worried. For the third quarter, the company reported revenue of $812.7 million. This was below the average analyst estimate by almost $7 million. Comparable sales saw a growth of 2.3%. The company reported earnings per share of $1.01, up from $0.75 in the prior-year period and $0.07 higher than analysts were expecting. Looking ahead, the company is expecting $2.30 and $2.35 per share on a non-GAAP basis for the full year, down from a previous guidance range of $2.35 to $2.50 per share. Executive chairman Dinesh Lathi said on the earnings call, "While we were pleased with our third quarter performance, as the quarter progressed, we saw deceleration of comp sales at our largest brand, Men's Wearhouse, due to lower transactions and this trend continued into November. While we are taking steps to turn the business around, based on what we are seeing in the business as of today, we have adjusted our full-year adjusted EPS guidance range to $2.30 to $2.35 to reflect our lower comp expectations for Men's Wearhouse. We are maintaining our comp outlook for our other retail brands. While we’re seeing some softness at Men's Wearhouse in Q4, we believe the growth strategies that have fueled four consecutive quarters of positive comps at this brand will continue to drive future growth."
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Hanesbrands Inc. shares closed down 6.63% yesterday on nearly 8.8 million shares traded. The stock hit a low of $13.74 during intra-day trading despite any remarkable news or announcements from the company. It was in November that the Massachusetts-based apparel firm Hanesbrands said it signed a lease at a High Point distribution center to support its Champion brand. Spokeswoman for the company Carole Crosslin told Triad Business Journal the company has signed a lease at 4190 Eagle Hill Drice. Hanesbrands is expected to be operational in the facility by January and employ about 200 new hires. The company will be reporting its next quarterly results on February 14th. The last time Hanesbrands reported earnings was in early November when it reported 0.55 EPS for the quarter, meeting the consensus estimate of $0.55. Revenue of $1.85 billion was below the consensus estimate of $1.87 billion.
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