The retirement of Jos A. Bank’s long held “buy-one-get-three-free suits” sales apparently did nothing to help parent company Tailored Brands spur sales in the last year. In fact, the company, formerly known as Men’s Wearhouse, says it lost $1 billion in 2015. As a result, it now plans to shutter 250 of its men’s clothing stores, including all Jos A. Bank and Men’s Wearhouse outlets.
The Wall Street Journal reports that Tailored Brands, which changed its name from Men’s Wearhouse in January, will close 80 to 90 full-price and 49 outlet Jos. A. Bank stores, as well as nine Men’s Wearhouse outlets and 100 to 110 Men’s Wearhouse Tux 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, who previously said he knew how to fix the company’s issues, told investors on a call Wednesday.
The company says that for the quarter ending Jan. 30, Jos. A. Bank sales fell 32%, driving an overall sales decline of 11% for Tailored Brands, CNBC reports.
Ewert blamed much of the decline on the discontinuation of Jos. A. Bank’s buy-one-get-three-sales, noting that the change “has proven significantly more difficult and expensive than we expected.”
“We do, however, remain confident that Jos. A. Bank offers a longer-term opportunity to profitably grow market share in the menswear business,” he said.
As of Jan. 30, Tailored Brands operated 714 Men’s Wearhouse Stores, 625 Jos. A. Bank locations, and 160 tux shops. In recent months, the company has been moving its tux rental business into Macy’s stores, the WSJ reports.
News of the store closings come just two years after Men’s Wearhouse and Jos. A. Bank ended months of contentious courtship and agreed to a $1.8 billion merger in which Men’s Wearhouse would absorb the Jos. A. Bank name.
Tailored Brands to Close About 250 Stores [The Wall Street Journal]
Men’s Wearhouse parent closing 250 stores [CNBC]
by Ashlee Kieler via Consumerist
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