Tailored Brands ' struggling stock plunged 27% in early trading on Thursday as the suit-maker predicted more sales slumps to come.
The retailer also suspended its dividend payments to pay down debt and repurchase shares.
The back story.
The company's stock has taken a hammering in 2019, losing more than 47% of its value even before Wednesday's second quarter results.
Sales at its suit stores, which include Men's Wearhouse and Jos. A. Bank, have declined sharply, partly due to a trend towards business casual attire.
Executive chairman - now chief executive - Dinesh Lathi admitted the company had to improve its business casual offering on an earnings call in March.
The company completed the sale of its corporate apparel business for $62 million last month and raised its guidance.
Tailored Brands delivered a mixed second quarter report as sales fell 4.1% to $789.5 million but came in above the FactSet consensus.
Adjusted earnings of $42 million, or 82 cents per share also beat estimates.
However, the retailer announced plans to suspend dividend payments to pay down debt and offered a weak outlook for the third quarter.
The firm said third quarter same-store sales would fall across all of its brands, including between 3% and 5% at Men's Wearhouse.
It estimated earnings per share of between 40 cents and 45 cents, falling way short of the 88 cents per share consensus.
The company's stock plunged 27% in early trading.
The rise of casual workplace attire has affected suit shops, but Tailored Brands' collection of stores has perhaps been hit hardest.
Chief executive Dinesh Lathi said on Wednesday "transformations take time" and that the early signs from customers showed "healthy progress".
However, it is hard to see how that statement fits with such a weak outlook in the third quarter and the share price looking less than smart.