Tailored Brands, the Houston-based owner of Men’s Wearhouse and Jos. A. Bank, plans to shutter about 250 locations this fiscal year, including all of its outlet stores.
The company, which made the announcement late Wednesday with its fourth-quarter results, also said it is reducing expenses by about $50 million by slimming down its operations and overhead.
Investors applauded the move, which followed an unprofitable holiday quarter and a slide in sales. The stock (ticker: TLRD) rose $1.46, or about 9 percent, to $17.82 a share.
The company did not release a store closings list, but said it would shut 80 to 90 standard Jos. A. Bank stores, as well as 58 outlet stores, in 2016. Between 100 and 110 MW Tux stores also will be eliminated, part of a shift of tuxedo rentals to its full-line stores and partner Macy’s Inc.
On a conference call, CEO Doug Ewert said the closings would be “in markets that are over penetrated and where we believe we can serve at the Jos. A. Bank core customer from our remaining store base.”
According to its website, the company has five Jos. A. Bank locations in Tarrant County with three in Fort Worth, one in Southlake and one in Arlington. And there are 12 more on the Dallas side of the Metroplex.
Tailored Brands, 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 faces 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 into free fall. Jos. A Bank’s same-store sales plunged 32 percent last quarter, compared with a 4.3 percent gain for Men’s Wearhouse.
Tailored Brands, which took that name when it adopted a holding-company structure earlier this year, said streamlining its stores 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 retailer is “tailoring down to a suitable size,” Cowen & Co. analyst John Kernan said in a report on Thursday. He boosted his earnings outlook for the company, which he expects to perform in line with the market.
This report includes material from the Star-Telegram.
Area Jos. A. Bank stores
Downtown Fort Worth, 501 Houston St. Map
University Park Village, 1540 South University Dr Suite 104 Map
Alliance Town Center, 9540 Sage Meadow Trail Map
Arlington Highlands, 4000 Arlington Highlands Blvd.Suite 157 Map
Southlake Town Square, 1238 Main Street Map
Las Colinas Village, 861 West John Carpenter Freeway, Suite B Map
Shops @ Highland Village, 3580 Justin Road, Suite 110 Highland Village Map
Downtown Dallas, 1508 Commerce Street Map
Shops @ Highland Park, 4234 Oak Lawn Avenue Map
Plaza @ Preston Village, 4025 Northwest Parkway Map
Village On The Green, 5301 Alpha Road Suite 32 Map
Hillside, 6316 E. Mockingbird Lane Map
The Shops At Willow Bend, 6121 W. Park Boulevard, Space B220 Map
Preston Towne Crossing, 2396 Preston Road Map
Market At Preston Ridge, 8549 Gaylord Parkway, Suite 107 Map
Firewheel Town Center 440 Coneflower Drive, Garland Map
Watters Creek, 980 Village Green Drive, Allen Map