Why Tailored Brands Stock Dropped Today

What happened

Shares of menswear retailer Tailored Brands (NYSE: TLRD) slumped on Monday, down about 9.6% at 3:05 p.m. EDT. There were no new developments pushing down the stock. Instead, pessimism seems to be building after a disappointing earnings report and leadership shuffle last month.

So what

Tailored Brands' core brands, Men's Wearhouse and Jos. A. Bank, both suffered comparable sales declines during the fourth quarter of 2018. Men's Wearhouse saw comps slump by 3.2%, while Jos. A. Bank registered a 0.5% decline.

A declining stock chart.

Image source: Getty Images.

Dinesh Lathi, now the President and CEO of Tailored Brands after a post-earnings shake-up, said in the earnings press release that those weak trends had continued into the first quarter of 2019. The company blamed the macroeconomic environment as well as slow execution on its growth initiatives.

Tailored Brands expects its results to be much worse in the first quarter. The company sees comparable sales at both Men's Wearhouse and Jos. A. Bank down by 3% to 5%. Adjusted earnings per share is expected to be $0.10 to $0.15, far below the average analyst estimate of $0.51.

Now what

Tailored Brands is now valued at roughly $375 million. The stock has shed nearly 90% of its value since peaking in 2015, right before problems with the Jos. A. Bank acquisition came to light.

The current retail environment is not treating Tailored Brands well. On top of that, men's suits aren't as popular as they once were. The market's increasing pessimism on the stock looks like it's warranted.

10 stocks we like better than Tailored Brands Inc
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tailored Brands Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Timothy Green has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More