Market Overview

Men's Wearhouse Stock Plummets 5.7%

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Men's Wearhouse Stock Plummets 5.7%

Men's Wearhouse Inc (NYSE: MW) crumbled by 5.7 percent on Thursday. The company's nearly 6 percent fall continues the recent trend for the retailer. Men's Wearhouse stock is currently down nearly 16 percent in the past one-month, and the GAAP loss per share for fiscal third-quarter 2015 has come in at $0.56.

During the fiscal third quarter, its GAAP loss per share had been due to the decrease in Jos. A. Bank sales. Men's Wearhouse conducted an interim valuation of the Jos. A. Bank trade name, which resulted in a $90.1 million non-cash impairment charge.

Related Link: Wednesday's After-Hours Movers Led By American Supercontucto, Men's Wearhouse

Doug Ewert, Men's Wearhouse CEO 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."

Recent Earnings

The company's preliminary results were released on November 5, 2015. 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' Responses

Investors were bearish about November's earnings report; however, Men's Wearhouse shares dropped ahead of its scheduled earnings release after the closing bell. This slump shouldn't shock investors so much, as the company has only received one 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 Men's Wearhouse may experience future challenges. For investors, it's important to watch the stock for any recent declines.

Image Credit: Public Domain

 

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