Tailored Brands’ stock plunged in after-hours trading Wednesday after the company released disappointing third-quarter results.
The men’s specialty retailer, which includes brands such as Men’s Wearhouse, JoS. A. Bank and Moores Clothing, closed up Wednesday 1.51 percent to $20.14 a share, but fell more than 27 percent in after-hours trading after the company announced earnings that were about a third of last year’s figure. As a result, Tailored Brands revised its outlook for the fourth quarter to “a more cautious” one, according to a statement from Tailored Brands executive chairman Dinesh Lathi.
Income for the three months ending Nov. 3 was $13.9 million, down from $36.9 million the same time last year.
Lathi said in the statement that the disappointing numbers can be attributed to fewer transactions at Men’s Wearhouse. In addition, lower sales volumes in the U.K. are likely a result of continued uncertainty surrounding Brexit and a weaker British pound, Lathi said.
Meanwhile, total sales increased 0.2 percent to $812.7 million, up from $810.8 million the same time last year. The largest gains were in same-store sales — up 2.3 percent during the period.
Lathi attributed the growth to the company’s bright spot: custom suiting, which sold an average of $5 million a week, compared with $2 million a week the same period a year ago. That’s a 150 percent increased year-over-year.
On Wednesday evening’s conference call, Lathi said the business will continue to focus on what is important to the customer, including “speed, selection and service.” Tailored Brands also closed two JoS. A. Bank stores during the quarter and plans to close about 10 more stores in the coming year to help reduce costs.
This is also the company’s first quarter without former chief executive officer Doug Ewert, who retired as ceo and a member of the board on Sept. 30. A replacement has not yet been found.