S&P Downgrades Men's Wearhouse By a Notch On Weak Sales At Jos. A. Bank Brand

Standard & Poor's on Friday downgraded Men's Wearhouse Inc.'s corporate credit rating by a single notch to B from B-plus, after the company reported sharply weaker-than-expected sales at its Jos. A. Bank brand. Jos. A. Bank, which Men's Wearhouse acquired in 2014, suffered a 14.6% decline in same-store sales in its latest quarter, the company said this week. "The rating action reflects significant underperformance at Jos. A. Bank and our view that a turnaround of the brand is unlikely in the near-term and will be a gradual process," S&P said in a statement. The unit comprises about 25% of the group's revenue base and has now started to move away from the heavy discounts for which it was known, a strategy that is not yet resonating with customers. Shares were down 3.7% in afternoon trade, and have fallen 66% in the year so far, while the S&P 500 has lost 2%.