Men’s Wearhouse Owner Tumbles After Disappointing First Quarterby
Tailored Brands Inc. shares fell as much as 17 percent after first-quarter profit and sales missed analysts’ estimates, a sign the owner of Men’s Wearhouse and Jos. A. Bank remains mired in a slump.
Excluding some items, earnings amounted to 29 cents a share in the period ended April 30, the company said in a statement Wednesday. Analysts had projected 44 cents on average, according to data compiled by Bloomberg. Sales fell 6.4 percent to $828.8 million in the period, missing the estimate of $842.3 million.
Tailored Brands, formed after the merger of Men’s Wearhouse and Jos. A. Bank, has struggled to align the two divisions. Last year, management abandoned Jos. A. Bank’s “buy one suit, get three free”-style promotions, irking longtime shoppers. That sent the chain’s sales plunging.
The stock dropped as low as $12.90 in New York on Thursday, the biggest intraday swoon in six months. The shares had been up 5.8 percent this year through Wednesday, boosted by optimism that Chief Executive Officer Doug Ewert could stage a comeback.
Despite the bleak quarter, business did show signs of improvement in May, the CEO said in the statement. Men’s Wearhouse had a same-store sales increase in the mid-single-digit range during the month, Ewert said. Jos. A. Bank and the company’s Moores chain in Canada also saw improvement, he said.
“We are making progress on our transition plan for Tailored Brands,” he said. “We are executing on our profit improvement program, organizational realignment, store base rationalization and cost reductions.”