Shares of Tailored Brands (TLRD - Get Report) on Monday rallied, then gave up the gains after the owner of the Men's Wearhouse and Jos. A. Bank chains sold its corporate apparel business and raised its second-quarter earnings outlook.
The company said Monday it had sold its corporate clothing unit to the current U.K. executive team that runs the outfit in a deal worth $62 million. While most of the money was due at the deal closing, $6 million is expected to get paid in the first quarter of next year.
The retailer also lifted its guidance for second-quarter adjusted earnings per share to 78 cents to 80 cents a share, up from previous guidance of 65 cents to 70 cents.
Analysts expect second-quarter earnings of 70 cents a share, on average, for the July quarter. Tailored Brands said it would report earnings on Sept. 11.
"We remain focused on improving our performance by transforming our customer experience through three key strategic initiatives: delivering personalized products and services, inspiring and seamless experiences in and across every channel, and brands that stand for more than just price," said Dinesh Lathi, Tailored Brands CEO.
The stock closed off 7.7% to $4.67 in trading Monday. They traded as high as $5.51 during the day.