What happened

Shares of Tailored Brands (TLRD) plunged 24% on Thursday morning after the specialty apparel company reported a fiscal fourth-quarter loss and offered uninspired guidance for the first quarter.

So what

Tailored Brands reported an adjusted loss of $0.28 per share for the quarter ending Feb. 2, slightly better than consensus estimates, on adjusted net sales of $770 million, which is down 10% year over year and below estimates. The company expects adjusted earnings of $0.10 to $0.15 per share in the first quarter, well short of analysts' $0.50 forecast.

After Tailored Brands slashed guidance in January, the fourth-quarter results were expected. A weak first quarter was not.

A man in a suit.

Image source: Getty Images.

The company said it expects same-store sales at both its Men's Wearhouse and JoS A. Bank stores to be down 3% to 5% in the first quarter. CFO Jack Calandra, on a call with investors, blamed the weak guidance on "significant headwinds," including a late Easter that impacts when proms are held, as well as foreign exchange impacts and "current business trends."

The outlook caused some on Wall Street to raise a white flag. B. Riley FBR analyst Susan Anderson downgraded Tailored Brands to "neutral" from "buy" and cut her price target from $20 to $11 due to a lack of visibility on when same-store sales would stabilize. Jefferies analyst Randal Konik, meanwhile, cut his price target to $19 from $24 per share in a note titled "How Could We Be So Wrong?"

Check out the latest earnings call transcript for Tailored Brands.

Now what

Tailored Brands looks like a bargain, trading at just 5.8 times earnings and with a dividend yield of 5.89%. Of course, that means little if the company can't come up with a way to drive traffic into its stores and grow sales.

On the call, management outlined a plan to increase its e-commerce presence, shift its product lineup to reflect a more casual modern workplace, and, in Calandra's words, create "brands that stand for something more than just price." That's easier said than done. Investors aren't in a mood to hang around and find out if they can pull it off.