NEW YORK (TheStreet) -- Shares of Men's Wearhouse (MW) fell 6.68% to $50.27 in morning trading Thursday after the clothing retailer reported a 71% profit decline thanks to the $1.8 billion acquisition of rival company Joseph A. Bank Clothiers.
The company reported profit of $12.3 million, or 25 cents a share, down from $42.9 million, or 85 cents a share, in the year-ago period. Adjusted earnings per share of $1.10, up from $1.01 in the same period one year earlier. Total revenue increased 24.1% year-over-year to $803.1 million from $647.3 million.
Analysts polled by Thomson Reuters expected adjusted EPS of $1.06 on revenue of $894.1 million.
The stock rose in after-hours trading Wednesday after the company reported the earnings, but it opened at $51.29 on Thursday, down from its Wednesday closing price of $53.87.
More than 3.6 million shares had changed hands as of 11:26 a.m., compared to the average volume of 733,072.
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 multiple strengths, 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."