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Tailored Brands (TLRD), formerly known as Men’s Wearhouse, is a men’s specialty apparel retailer. It owns Men's Wearhouse, Jos. A. Bank and some other brands and serves customers through 1,400 locations in the U.S. and Canada as well as e-commerce websites.

The company had acquired Jos. A. bank in 2014 and had to take a large write-down on the investment. However, after two years of store closings, job cuts and changes in the marketing strategy, Jos. A. Bank is finally getting back on track.  

Excellent Third Quarter Results

The retailer delivered better-than earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.54 by 39%.

This was the second consecutive quarter of positive comparable sales for the retail segment as a whole despite an unfavorable 70 basis point impact from the hurricanes.

"We are encouraged by the progress we are making on our strategic initiatives to grow our custom business and enhance our online and in-store omni-channel capabilities.  These initiatives are part of our strategy to deliver a superior customer experience in order to increase market share and drive long-term sustainable growth," said the CEO.

Shares jumped about 12% after the report.

Partnership with Macy’s Terminated

In May, Macy’s and Tailored Brands announced their plan to wind down the tuxedo rental partnership established in 2015.

The company recently announced that in addition to closing all 170 tuxedo shops at Macy's, it expects approximately net 20 store closures in 2017 as it continues to review of its real estate portfolio.

Rising Estimates

After strong results, analysts have raised estimates for the company. Zacks Consensus Estimates for the current and next year are $2.08 per share and $2.14 per share, up from $1.82 and 1.93 respectively, before the results.

The company has delivered an average positive earnings surprise of 7.7% in the past four quarters.

Bottom Line

The stock has top Zacks Style Scores, “A” for Growth, Value as well for VGM. Dividend yield is quite attractive at 3.41%. Further, with an expected long-term earnings growth rate of 16.5%, the stock is worth a look.

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