Men’s Wearhouse Sales Are Tanking After Jos. A Bank Sales Were Abruptly Ended

Men's Wearhouse

Men’s Wearhouse reported a 15% drop in sales after it acquired Jos. A. Bank in 2014 and then nixed the company’s popular buy one, get 3 free suit promotion in October 2015.

“This [sales] decrease was primarily driven by a decline in traffic as the Company began the transition away from the Buy-One-Get-Three promotional events,” the company said in a statement.

Shares of Men’s Wearhouse plunged 28% after hours when it reported its third quarter results.

Men’s Wearhouse also cut its earnings outlook from $0.87 per share to between $0.46 and $0.51.

The company is also facing an increasing amount of competition from fast fashion chains including Zara and H&M.

Many buyers are also embracing the athleisure trend which moves them away from suits and dressier clothing to a casual lineup.

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Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.