The transformation at Tailor-made Manufacturers Inc. has begun — however it’s seemingly not what traders had been anticipating.
The lads’s specialty retailer, which incorporates Males’s Wearhouse and Jos. A. Financial institution below the corporate umbrella, halted buying and selling Wednesday afternoon earlier than the tip of the day’s session.
That’s as a result of Tailor-made Manufacturers mentioned beginning within the fourth quarter it might not be paying a dividend. The corporate anticipates that by suspending the 18-cent-per-share quarterly money dividend it can have about $36.5 million a 12 months in the stores again firm shares and cut back debt.
“The board of directors’ unanimous decision to suspend the quarterly cash dividend for reallocation to debt repayment and share repurchases is consistent with our commitment to responsible allocation of capital,” Tailor-made Manufacturers president and chief govt officer Dinesh Lathi mentioned in his ready remarks. “And while our [second-quarter] results and [third-quarter] guidance reflect what we’ve previously shared about the need to transform our customer experience and the fact that transformations take time, the early signs of customer response to our strategies indicate that we are making healthy progress on our journey.”
Buyers didn’t appear happy with the information. Firm shares, which closed up 5.75 % to $7.17 proper round 2:30 p.m., plunged by
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