Market Insider

Shares of Tailored Brands plunge after fourth quarter miss, weak guidance

A Men's Wearhouse in New York
Adam Jeffery | CNBC

Tailored Brands shares plunged on Thursday after the company reported disappointing fourth-quarter results and issued weak 2017 guidance.

Shares of the Men's Wearhouse parent company closed the day down more than 32 percent.

The California-based company posted an adjusted loss of 19 cents per share on revenue of $793 million on Wednesday. A consensus of analysts polled by FactSet expected a loss of 12 cents per share on revenue of $811 million.

The company gave a weak guidance, estimating its diluted earnings for 2017 to be between $1.45 a share and $1.75 per share.

"Unfortunately, the challenging retail environment resulted in soft traffic across our retail brands, which drove lower than anticipated fourth quarter and full year net sales and gross margins," President and CEO Doug Ewert said in a press release on Wednesday.

Comparable sales were down 1.2 percent for the quarter year-over-year; sales for 2016 were also down 3.2 percent from last year.

"We closed 233 stores under our store rationalization program, we achieved over $60 million in cost savings through our profit improvement plan, and we stabilized and began to turn around Jos. A. Bank," Ewert said.

Jos A. Bank was the only one of Tailored's four main segments to post same-store sales growth. But the line's 3.6 percent rise in same-store sales missed the forecast for a 4.9 percent growth estimate, according to FactSet.

Tailored Brands acquired Jos A. Bank back in 2014 for $65 per share in cash.

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