NEW YORK (TheStreet) -- Shares of Tailored Brands (TLRD - Get Report) are spiking 8.8% to $17.80 on heavy trading volume early Thursday afternoon after posting its 2015 fourth quarter results after yesterday's closing bell.
The Houston-based holding company of Men's Wearhouse and Jos. A. Bank reported an adjusted loss of 30 cents per diluted share, narrower than the loss of 37 cents per share that analysts were expecting.
Revenue for the period was $825.7 million, which fell short of Wall Street's estimates of $835.8 million.
Additionally, the company said it would close about 250 stores, including all of its outlet stores.
"Over the past several months we completed a comprehensive operational review of the Tailored Brands businesses and are in the process of taking actions we believe will right-size our store base, optimize our cost structure, return Jos. A. Bank to profitability and improve other operating aspects of Tailored Brands," CEO Doug Ewert said in a statement.
The company's transition away from the brand's "unsustainable" buy-one-get-three-free suits promotion in October was more difficult and expensive than expected, he noted.
Comparable same store sales at Jos. A. Bank fell 31.9% year-over-year, while sales increased 4.3% at Men's Wearhouse.
Ewert said he remains "confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business."
About 1.99 million of the company's shares were traded so far today vs. its average volume of 1.28 million shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.
This is driven by multiple weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: TLRD