For the second quarter of fiscal 2018, custom sales of Tailored Brands doubled compared to last year. The company reported positive comparable sales for all retail brands in the second quarter of fiscal 2018. Transactions increased through brand marketing campaigns and enhanced omni-channel initiatives.

As a per cent of sales, consolidated gross margin decreased 180 basis points to 44.8 per cent. On an adjusted basis, consolidated gross margin decreased 130 basis points, primarily due to a decrease in retail segment gross margin rate.

On a Gaap basis, consolidated gross margin of the US-based company was $368.9 million, a decrease of $27.8 million, primarily due to the decrease in net sales. The company is moving to a leaner, more efficient inventory model, which is particularly important as custom clothing becomes a larger percentage of its mix. With leaner inventories, Tailored Brands can improve the customer experience and free-up working capital.

The balance sheet is being strengthened. During the quarter, the brand completed a $175 million partial redemption of its senior notes and its total debt is down $325 million versus a year ago. Cash and cash equivalents at the end of the second quarter of 2018 were $68.2 million, a decrease of $44.5 million compared to the end of the second quarter of 2017.