Tailored Brands stock resumes trading, down 33%

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Tailored Brands calls for lower profit in Q3, halts dividend

Tailored Brands Inc. stock was halted late Wednesday after the retailer, which owns Men’s Wearhouse and other apparel brands, reported mixed second-quarter earnings, halted dividend, and called for lower profits in the third quarter. Tailored said it earned $34 million, or 68 cents a share, in the quarter, compared with $49 million, or 97 cents a share, a year ago. Adjusted for one-time items, Tailored earned $42 million, or 82 cents a share, compared with $1.07 a share a year ago. Sales fell 4.1% to $789.5 million, Tailored said. Analysts polled by FactSet had expected Tailored Brands to report a GAAP and adjusted EPS of 74 cents a share on sales of $789.2 million. For the third quarter, the company said it expects adjusted EPS between 40 cents and 45 cents, compared with an analyst expectation of 88 cents a share, according to FactSet. Tailored also called for sales declines across the board in the quarter, including a fall between 3% and 5% in same-store sales at Men’s Wearhouse. Tailored Brands said it expects a net closure of seven stores across Men’s Wearhouse and Jos. A. Bank for the quarter. The company is halting its dividend to pay down debt, it said. The stock rose 6% before the halt, and has lost 47% this year, versus gains of 20% for the S&P 500 index.

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