Men’s Wearhouse Owner to Close Hundreds of Stores as Sales Slide

HOUSTON, United States — Tailored Brands Inc. plans to shutter about 250 locations, including all its outlet stores, as the owner of Men's Wearhouse and Jos. A. Bank copes with sluggish sales.

The Houston-based company will close 80 to 90 standard Jos. A. Bank stores, as well as 58 outlet stores, according to a statement Wednesday. Between 100 and 110 MW Tux stores also will be shut, part of a shift of tuxedo rentals to its full-line stores and partner Macy’s Inc.

Tailored Brands, which took that name when it adopted a holding-company structure earlier this year, said the shake-up will weigh on its profit forecast for the year. It now expects earnings of $1.55 to $1.85 a share, excluding some items, down from as much as $2 a share previously.

The company, which bills itself as the largest retailer specializing in men’s suits, is scrambling to align its two major divisions. While sales have been growing at Men’s Wearhouse, Jos. A. Bank is trying to stem a customer exodus. Last year, management abandoned Jos. A. Bank’s “buy one suit, get three free”-style promotions, irking longtime shoppers. That sent the chain’s sales into free fall.

Tailored Brands posted a loss of 30 cents a share, excluding some items, in the quarter ended Jan. 30. Analysts had projected a loss 37 cents on average, according to data compiled by Bloomberg. Sales fell to $825.7 million, missing the $838.6 million estimated by analysts.

The stock gained 6.3 percent to $17.39 in late trading after the latest results were released. Tailored Brands shares, which traded as Men’s Wearhouse until February, were up 11 percent this year through Wednesday’s close.

By Nick Turner; editor: Mark Schoifet.