Will This $1.8 Billion Acquisition Finally Pay Off for Tailored Brands?

I bet no one saw coming the big improvements Tailored Brands (NYSE: TLRD) enjoyed from its Jos. A. Bank division in the most recent quarter. Sure, the men's suits retailer that was acquired at a cost of $1.8 billion has been steadily improving, but after years of reporting negative same-store sales -- at one point they plunged 32% -- the nearly 8% jump in comps had to be a surprise.

Of course, when you fell as far as Jos. A. Bank did, any gain would look monumental. Still, it's a remarkable turnaround for a chain that has squandered so much shareholder value for Tailored Brands investors. Indeed, last year the men's clothing store took a massive $1.15 billion non-cash charge related to goodwill and intangible asset impairment charges surrounding the Jos. A. Bank brand. Basically, Tailored Brands was saying the value of its acquisition was now worthless. So any sort of positive development seems like good news.

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Source: Fool.com