The stock price of the owner of Men's Wearhouse and Jos. A. Bank plunged 25.87% to $5.32, even as the analysts raised their price target on the struggling retailer to $6, up from $5 previously.
Investors have been bailing on the stock following Tailored Brand's release of a mixed, second-quarter financial report.
While the men's apparel chain beat analysts' estimates on earnings and came in on target on revenue, Tailored Brands also suspended its dividend and warned investors of a tougher third quarter.
The retailer said it would suspend payment of its 18-cents-a-share dividend in the fourth quarter in order to pay down corporate debt and repurchase shares. In addition, Tailored Brands also forecast lower third-quarter sales, with earnings per share to drop to between 40 cents to 45 cents.
Tailored Brands also warned investors it was bracing for a drop in same-store sales of 3% to 5% at Men's Wearhouse and 2% to 4% at Jos. A. Bank.
Still, the retailer beat analysts' expectations with its second-quarter earnings. GAAP diluted EPS was 68 cents a share. Adjusted EPS was 82 cents, coming in above the 74 cents expected by analysts surveyed by Zacks Investment Research.