Tailored Brands is adding to its C-suite.
The country’s largest retailer of men’s tailored clothing is bringing in a new chief financial officer and has elevated one of its executives to the role of chief operating officer.
On Dec. 1, Mike Baughn, the former CFO of Foot Locker, will join Tailored Brands as executive vice president and CFO. And Karla Gray, who joined the retailer in May 2021 as executive vice president and chief stores officer, is being promoted to executive vice president and chief operating officer.
Baughn succeeds Brandy Richardson, who left the company over the summer to join Saks Global as CFO. The chief operating officer role has been vacant for several years.
“As our company looks to the future, our ability to perform with financial and operational rigor will be critical to our success,” said John Tighe, chief executive officer. “In Mike, we have found someone who not only brings an extraordinary background to be our next CFO, but who is a strong reflection of our company’s values. And as Karla steps into the role of COO, I am confident she will bring a next level of operational excellence across the enterprise as we open new stores and propel our strategic growth plans.”
In an interview at the company’s New York City offices, Tighe credited Baughn with successfully executing Foot Locker’s acquisition by Dick’s Sporting Goods and pointed to his experience as a CFO of a public company. “He is a terrific, qualified guy and the minute we met him, we knew he’d fit perfectly in with our culture,” Tighe said.
His appointment raises the question of whether Tailored Brands will once again consider going public. The retailer, which was founded in 1973, went public in 1992. It continued to be publicly traded until August of 2020 when it filed for bankruptcy as a result of the pandemic and other internal issues. It emerged from bankruptcy as a private company that December with much of its financing coming from Silver Point Capital, which remains its largest shareholder and a secured lender.
Tighe declined to comment on the IPO rumors, instead choosing to focus on the new appointments. In addition to Baughn, he said Gray will continue to oversee stores, real estate and the Customer Contact Center and will now add oversight for supply chain and technology.
“There are going to be lots of synergies around supply chain and stores that we need to bring together,” Tighe said. “Karla has done remarkable work with the stores organization, transforming it to be super effective, putting customers first, and also improving productivity. So we’re looking forward to that across all of our other operational endeavors.”
Gray, who had served as vice president and general manager of North American Factory Stores at Nike before joining Tailored Brands, said: “This is an exciting time for the company, and I couldn’t be happier to be partnering more closely with the leaders of these functions. Being ‘Better Every Day’ is one of our core values and I believe we have tremendous opportunity to build on what is an incredibly strong foundation as we move into a new era of efficiency and growth.”
Baughn, who also spent 15 years at Kohl’s before joining Foot Locker, said of Tailored Brands: “The fundamentals are incredibly strong, and these amazing brands are positioned well for long-term growth. Throughout the process of getting to know the company and its leaders, it was clear that its values are deeply ingrained in how the team operates and I am ready to become a part of this dynamic organization and its forward momentum.”
Tighe said that for the second year in a row, “business has been strong” at Tailored Brands. He said each of the company’s nameplates — the flagship Men’s Wearhouse chain, Jos. A Bank, Moores and K&G Fashion Superstore — are performing well. “All of the banners are growing and we’re wildly profitable,” he said, adding that Jos. A. Bank is actually the strongest business this year. “We love the Jos. A. Bank business and we think there’s tremendous opportunity to grow that business in the future.”
During a presentation in January, the company said its sales were $2.6 billion and its adjusted EBITDA was $406 million for fiscal 2023. No updated figures are available.
Tighe, who was named CEO in August as Peter Sachse transitioned to executive chairman, said the retailer is focused on five pillars including a strong focus on marketing, localizing its assortments, growing its penetration in e-commerce, and continuing to increase its market share in tailored clothing and rental while building on what he called “every wear,” or apparel other than suits.
“We have a real purpose for existing,” Tighe said. “People come to us because they need help for the most important moments in their lives — weddings, job interviews, proms — and our teams kind of spring to action and make that happen. We have the number-one market share in tailored in the country but guys aren’t necessary wearing suits back to work. They might wear a nice cashmere sweater or slacks and a sport coat or a pair of dress jeans. That’s a big opportunity for us.”
Tailored Brands opened six stores this year: six Men’s Wearhouse and three K&G units, and the plan is to open another five in 2026, primarily in the second and third quarters. The company operates more than 1,000 stores nationally.
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