Dismal cash from the guardian firm of guys’s Wearhouse are scaring the pants off traders.
tailored brands shares plummeted as a lot as 27% after hours after it posted awful fourth quarter results. males’s Wearhouse gross sales had been down three.7%.
“sadly, the challenging retail setting resulted in comfortable site visitors across our retail brands,” CEO Doug Ewert said in a commentary.
Like most brick-and-mortar shops, tailored brands has been hit by using online shopping and declining foot site visitors at malls. the upward thrust of casualwear additionally poses a problem.
the company shuttered 233 outlets up to now year.
The Jos. A. bank brand, which men’s Wearhouse sold in 2014, remained a drag. sales at those shops had been down four.7% closing quarter. They’ve taken successful ever because it dropped its purchase-One-Get-Three swimsuit sale.
A 2015 deal with Macy’s to appoint tuxedos out of its malls was once also a bust. The settlement cost tailored manufacturers $ 14 million in 2016, and the corporate anticipates losses could leap to $ 20 million subsequent year.
“all over 2016, our Macy’s tuxedo industry didn’t ramp as expected,” Ewert stated. “we are actively engaged in discussions with Macy’s to restructure our settlement.”
the corporate stated it expects males’s Wearhouse gross sales will proceed to drop in 2017, although it is hoping to turn round Jos. A. bank.
CNNMoney (new york) First revealed March eight, 2017: 6:05 PM ET
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