Men’s Wearhouse (MW) Stock Plunges on Preliminary Quarterly Earnings

Men’s Wearhouse (MW) stock is retreating after the company reported preliminary fiscal 2015 third quarter earnings that fell below estimates.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Men's Wearhouse (MW) stock is declining 37.66% to $25 in pre-market trading on Friday after the company released preliminary earnings for the fiscal 2015 third quarter.

After the market close on Thursday, the company posted preliminary earnings of 46 cents to 51 cents per share for the quarter, down from previous guidance of 87 cents per share and estimates of 99 cents per share.

Same stores sales declined 14.6% at Jos. A. Bank, which was acquired in 2014 for $1.8 billion, while same stores sales rose 5.3% at Men's Wearhouse locations.

Jos. A. Bank same store sales are expected to continue to fall in the fiscal fourth quarter by about 20% to 25%.

Additionally, Men's Wearhouse lowered its fiscal 2015 earnings guidance to $1.75 to $2 per share, from $2.70 to $2.90 per share.

The company will report is fiscal 2015 third quarter financial results on December 9.

Men's Wearhouse stock was downgraded to "hold" from "buy" at Jefferies this morning because of lower than expected same store sales at Jos. A. Bank.

The firm lowered its price target to $32 from $67.

Separately, TheStreet Ratings team rates MENS WEARHOUSE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate MENS WEARHOUSE INC (MW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: MW

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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