Men's Wearhouse (MW) Stock Plummets By 5.7 Percent

The Men's Wearhouse, Inc.

crumbled by 5.7 percent on Thursday. The company's shares fell by nearly 6 percent, continuing the recent trend for the retailer. The Men's Wearhouse stock is currently down nearly 16 percent in the past one-month. The Men's Wearhouse GAAP loss per share for fiscal third quarter 2015 was $0.56. During the fiscal third quarter, its GAAP loss per share had been due to the decrease in the Jos. A. Bank sales. The Men's Wearhouse conducted an interim valuation of the Jos. A. Bank trade name which had resulted in a $90.1 million non-cash impairment charge. Doug Ewert, Men's Wearhouse chief executive officer stated, "When we acquired Joseph Bank, we knew that we needed to correct the promotional model. However, we underestimated the impact to the near-term performance as we began to execute the difficult, but necessary, corrective steps. We remain confident that these steps will restore a long-term, sustainable, profit model and reshape the business for a healthy and growing Jos. A. Bank The company's preliminary results released on November 5, 2015. The Men's Wearhouse's third quarter comparable sales increased 5.3 percent. Its clothing comps of 7.2 percent were driven by higher transactions per store and its rental comps of 0.7 percent. Comparable sales decreased by 14.6 percent at Jos. A. Bank. Investors were bearish about November's earnings report, however The Men's Wearhouse's shares had dropped ahead of its scheduled earnings release after the closing bell. This slump shouldn't shock investors so much, as MW, only has had 1 negative revision in the past few weeks. The specialty apparel retailer's current year earnings consensus also moved lower over the last 30 days. It is possible that The Men's Wearhouse may experience future challenges. For investors, it's important to watch MW's stock for any recent declines.