Why Tailored Brands, Newmont Mining, and Prestige Consumer Healthcare Slumped Today

These stocks helped pull down the entire stock market.

Dan Caplinger
Dan Caplinger
Jan 14, 2019 at 4:34PM
Consumer Goods

The stock market eased lower on Monday, with losses of around 0.4%-0.9% for most major indexes. A combination of factors weighed on investors, including the beginning of earnings season, the long government shutdown, and geopolitical and global economic impacts of trade discussions between the U.S. and key trading partners. Bad news from certain individual companies also dragged down Wall Street, and Tailored Brands (NYSE:TLRD), Newmont Mining (NYSE:NEM), and Prestige Consumer Healthcare (NYSE:PBH) were among the worst performers. Here's why they did so poorly.

Tailored Brands unravels

Shares of Tailored Brands plunged 18% after the company behind the Men's Wearhouse and Jos. A. Bank retail store concepts cut its guidance for its fourth-quarter results. The company said that overall comparable sales for the retail segment during November and December were down 1.4%, with a modest 0.1% rise at Jos. A. Bank failing to offset a 3.6% drop for Men's Wearhouse. That led Tailored Brands to conclude that Jos. A. Bank comps will be flat for the full fourth quarter, which is worse than the low-single-digit percentage rise that it had expected. With steeper-than-expected losses likely for its bottom line as well, Tailored Brands could face new challenges as 2019 begins.

Check out the latest Tailored Brands earnings call transcript.

One model wearing casual dresswear next to another person wearing a dark suit next to an antique car.

Image source: Tailored Brands.

Newmont finds a pay streak in Goldcorp

Newmont Mining saw its stock fall 9% in the wake of its decision to buy industry peer Goldcorp in a deal worth $10 billion. Nearly all of the consideration Newmont is paying is in its own stock, with Goldcorp investors getting 0.328 Newmont shares for every Goldcorp share they own. Yet the drop in Newmont's stock suggests that investors think it might have overpaid for Goldcorp, despite the fact that recent consolidation activity throughout the precious metals arena has picked up lately. Gold prices pushed above $1,290 per ounce, but Newmont investors seem uncertain whether growing to become the largest gold producer in the world is a competitive advantage.

Check out the latest Newmont Mining earnings call transcript.


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Prestige looks less healthy

Finally, shares of Prestige Consumer Healthcare finished 9% lower. The over-the-counter healthcare product specialist said that its fiscal third-quarter financial results wouldn't be quite as good as previously anticipated, with inventory reductions at key retail locations causing sales to fall short. Prestige also reined in its full-year outlook, expecting organic revenue to come in flat to up just 0.5% for the year and earnings to suffer as well. Despite optimistic comments from CEO Ron Lombardi, Prestige investors seem unclear about whether its long-term brand-building efforts will pay off with a competitive edge over rivals in the long run.

Check out the latest Prestige Consumer Healthcare earnings call transcript.