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Factors to Watch Ahead of Tailored Brands’ (TLRD) Q3 Earnings


Tailored Brands, Inc. TLRD is slated to release third-quarter fiscal 2018 results on Dec 12, 2018. This specialty apparel retailer’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter, while it has outperformed the same by average of 35.8% in the trailing four quarters. Let’s see how things are shaping up ahead of this earnings release.

Tailored Brands, Inc. Price and EPS Surprise

Tailored Brands, Inc. Price and EPS Surprise | Tailored Brands, Inc. Quote

What to Expect?

The Zacks Consensus Estimate has remained stable in the past 30 days at 94 cents, which reflects more than 25% growth from the year-ago quarter’s figure. Further, the consensus mark for revenues is $829.1 million, reflecting 2.3% improvement from the year-ago quarter.

Factors Impacting the Quarter

Tailored Brands is likely to gain from its focus on key strategies, which include improving delivery speed; enriching customer experience; undertaking product launches; and creating awareness and drawing customer traffic. Incidentally, the company continues to solidify its brand portfolio via innovative and new marketing techniques, which should keep yielding favorable results. Also, Tailored Brands is committed toward strengthening its omnichannel network through its LIVE! E-commerce service. This service connects online shoppers with in-store consultants.

Well, increased rental demand in the second half of the year bodes well. This is mainly due to important wedding dates. Notably, the company envisions Jan 19 to be a significant wedding date, which should increase business for the company. However, rental business is being affected by consumers’ shifting preference from rental to retail for certain occasions. Notably, retail usually entails a lower gross margin rate. Thus, the company has to undertake efficient fixed-cost management at its rental business to stay firm. The company noted that its corporate apparel sales are suffering, partly owing to lower U.K. sales. Lingering apprehensions related to Brexit remain a concern for U.K. sales.

Nevertheless, Tailored Brands’ strategic initiatives are likely to draw traffic and drive top line. Further, the company’s strong inventory management is a significant growth-driving strategy, given the increased penetration of custom clothing. These efforts are likely to aid the company’s performance in the quarter to be reported.

What the Zacks Model Unveils

Our proven model doesn’t show that Tailored Brandsis likely to beat bottom-line estimates this quarter. For this to happen, the stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Though Tailored Brands carries a Zacks Rank #3, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks Poised to Beat Earnings Estimates

Caseys General Stores, Inc. CASY has an Earnings ESP of +6.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

NIKE, Inc. NKE has an Earnings ESP of +0.34% and a Zacks Rank #3.

Netflix, Inc. NFLX has an Earnings ESP of +14.44% and a Zacks Rank #3.

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