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What: Shares of specialty retailer Men's Wearhouse sank as low as 12.5% today after its quarterly results and guidance missed Wall Street expectations.
So what: The third-quarter miss -- EPS of $0.95 versus the average analyst estimate of $0.97 -- coupled with downbeat guidance for the full year reinforces concerns over slowing growth going forward. Of course, management blamed Superstorm Sandy, the presidential election, and the fiscal cliff for the reduced traffic levels, suggesting that the weakness is just short-term in nature.
Now what: Management now sees full-year EPS of $2.57-$2.63, down from its prior view of $2.74-$2.80 and well below the consensus of $2.78. "We experienced negative November comparable store clothing sales in both the U.S. and Canada as a result of lower traffic levels at our retail stores," CEO Doug Ewert said. "[A] more cautious outlook for traffic trends and clothing sales through the fourth quarter is now warranted and [we] have revised our guidance accordingly." Of course, with the stock now sporting a 2%-plus dividend yield and a forward P/E of 10, much of that caution might already be baked into the price.
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The article Why Men's Wearhouse Shares Plunged originally appeared on Fool.com.
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