
Jim Cramer -- Men's Wearhouse Plagued by 'Disastrous' Acquisition, Wrong Inventory
Men's Wearhouse (MW) stock was definitely out of fashion Friday, dropping nearly 42% after the company missed on revenue expectations and provided weaker-than-expected guidance.
The company's acquisition of Jos. A. Bank was "disastrous," according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. On CNBC's "Mad Dash" segment, he pointed out the retailer guided for full-year earnings of $1.75 to $2 per share, way down from expectations for $2.70 to $2.90 per share.
Men's Wearhouse MW data by YCharts
The company is experiencing poor comp-store sales growth from Jos. A Bank, which will weigh on fiscal third-quarter earnings per share results, Cramer added.
Aside from overpaying for Jos. A. Bank, Men's Wearhouse has the wrong inventory, Cramer said. The warmer than usual weather this fall and expectations for a mild winter is "a nightmare" for retailers, he explained.
Wool suits aren't going to sell when its warm outside but the impact isn't limited to just Men's Wearhouse, Cramer said. Investors should hear what Macy's (M) - Get Report has to say when it reports earnings Wednesday.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.









