Tailored Brands, Inc. engages in the retail of men's suits and the provision of tuxedo rental in the United States and Canada. It offers a selection of suits, sport coats, furnishings and accessories. The company was founded in 1973 and is headquartered in Houston, TX.
Our success depends, in part, on our ability to meet the changing preferences of our customers and manage merchandise lead times.
Certain of our strategies, including product innovations and expanding our exclusive offerings, may present greater risks.
Our investments in omni‑channel initiatives may not deliver the results we anticipate.
We face challenges in managing our store fleet, including limited new store growth potential.
Any future acquisitions or divestitures could result in operating difficulties and could harm our operating results.
Risks Associated with General Economic Conditions
Our business is particularly sensitive to economic conditions and consumer confidence.
We have experienced fluctuations in our sales and expect our sales to fluctuate in the future.
Some of our businesses are seasonal.
Risks Associated With Our Sourcing and Distribution Strategies
The loss of, or disruption in, our distribution centers could result in delays in the delivery of merchandise to our stores.
Our business is global in scope and can be impacted by factors beyond our control.
Failure of manufacturers to adhere to applicable laws and regulations including our internal policy requirements could harm our business.
Our business could be adversely affected by increased costs of the raw materials and other resources that are important to our business.
Any significant interruption in delivery of raw materials could cause interruptions that may delay the manufacture of our products.
Labor union disputes could impact our business.
Risks Associated with Our Information Technology Systems
If we are unable to operate information systems and implement new technologies effectively, our business could be disrupted or our sales or profitability could be reduced.
We are subject to data security risks, which could have an adverse effect on our results of operations and consumer confidence in our security measures.
Other Risks Affecting Our Business
We may be negatively impacted by competition.
Our success depends on our ability to attract and retain key personnel.
The occurrence of an event that impacts our reputation could have a material adverse effect on our brands.
We may be unable to protect our trademarks and other intellectual property rights.
War, acts of terrorism, public health crises, or weather catastrophes (whether or not caused by climate change) could have a material adverse effect on our business.
Fluctuations in exchange rates may cause us to experience currency exchange losses.
Compliance with ever-changing legal, regulatory and corporate governance requirements and standards for accounting could result in increased administrative expenses or litigation and could adversely impact our business, results of operations and reported financial results.
Changes to accounting standards and estimates could materially impact our results of operations, financial position, and cash flows.
We could incur losses due to impairment on long‑lived assets, goodwill and intangible assets.
Our advertising, marketing and promotional activities have been the subject of review by state regulators and subject to lawsuits.
We are subject to various proceedings, lawsuits, disputes, and claims, from time to time, which could adversely affect our results of operations, financial position, and cash flows.
Rights of our shareholders may be negatively affected if we issue any of the shares of preferred stock which our Board of Directors has authorized for issuance.
Our stock price may be volatile or may decline regardless of our operating performance.
Risks Associated with Our Indebtedness
Our current level of indebtedness could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk to the extent of our variable rate debt and prevent us from meeting our obligations under the Credit Facilities or the indenture governing the Senior Notes.
Despite our high indebtedness level, we will still be able to incur significant additional amounts of debt, which could exacerbate the risks associated with our substantial indebtedness.
We may not be able to generate sufficient cash to service all of our indebtedness and fund our working capital and capital expenditures, and we may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
The agreements and instruments governing our debt impose restrictions that may limit our operating and financial flexibility.
Our variable rate indebtedness subjects us to interest rate risk, which could cause our debt service obligations to increase.
Uncertainty relating to the LIBOR calculation process and potential phasing out of LIBOR may adversely affect our results of operations.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
We are a leading specialty retailer of men’s tailored clothing, and the largest men’s formalwear provider in the United States (“U.S.”) and Canada. We help men look and feel their best by offering a broad selection of clothing including suits, suit separates, sport coats, slacks, formalwear, business casual, denim, sportswear, outerwear, dress shirts, shoes and accessories. We serve our customers through an expansive omni-channel network that includes over 1,400 stores in the U.S. and Canada as well as our branded e-commerce websites at www.menswearhouse.com, www.josbank.com, and www.josephabboud.com.
Our U.S. retail stores operate under the Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank, Joseph Abboud and K&G brand names and are located in 50 states and the District of Columbia. Our Canadian stores operate under the Moores brand name and are located in 10 Canadian provinces. As of February 2, 2019, the Company operated 1,464 stores throughout the U.S. and Canada.