A view outside the Men's Wearhouse store.

Tailored Brands Inc., formerly known as Men’s Wearhouse, delivered preliminary fourth-quarter results this morning that caused Wall Street to breathe a sigh of relief and sent the stock higher.

Comparable sales increased 4.3 percent at Men’s Wearhouse for the fiscal fourth quarter, driven by an increase in the average unit retail and tuxedo comps of 4.7 percent. The weakness at Jos A. Banks continued, with comparable sales decreasing 31.9 percent due to a decline in average transactions per store.

Tailored Brands confirmed its previous guidance for fiscal 2015 earnings to be in the range of $1.75 to $2, albeit the low end of the range. The company also noted that there is likely going to be a significant non-cash impairment charge with regards to Jos. A. Bank.

“This is slightly above our adjusted 2015 EPS estimate of $1.74 and well above consensus of $1.52,” said Richard Jaffe, analyst at Stifel. “Given the weak sales, particularly at the JAB division, we are comfortable with our estimate.” Jaffe has a “hold” rating on the stock, which jumped more than 2 percent to $13.58 in midday trading.

Since ending the volume discounts at Jos. A. Banks, the company has struggled to find ways to bring back its customer. Investors seemed pleased to hear that Tailored Brands was going to restructure the brand to improve performance, including closing stores and restructuring costs.

Doug Ewert, chief executive officer of Tailored Brands, said, “We are taking actions to reduce costs and rationalize the store base. We have also identified opportunities and begun the work to improve efficiency with positive results in other areas of our portfolio.”

On a positive note, Tailored Brands said it has seen improvement since the holiday season. The preliminary full-year results for Men’s Wearhouse for the current year are for an increase in sales of 4.9 percent, which is higher than the previous year’s increase of 3.9 percent.

The K&G brand is also showing an increase in sales for the full year of 5 percent, which is better than last year’s 3.7 percent. The Jos. A. Banks and Moores brands are expected to show sales declines for the full year.

Fitch Ratings senior director David Silverman said the guidance confirms that weakness will likely continue through 2016. “Jos A. Bank hasn’t yet hit its inflection point. A closer look at the brand this year will likely yield deeper-than-expected cost reductions and store closures,” Silverman said. ‘’Until those reductions cycle through, things may look worse in 2016 before they look better.”

Tailored Brands will deliver results for the fourth quarter on March 9 and then host a conference call on March 10. At that time the company said it would provide details on its initiatives with regards to the store closings and cost reductions it plans.

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