Men's Wearhouse shares tank after people stopped shopping at Jos. A. Bank

Men’s Wearhouse shares are crashing after the company said Jos. A. Bank’s decision to scale back on its outrageous discounts hit foot traffic and sales.

The retailer held one final “buy-one, get-three-free” sale in October, announcing that the current strategy was unsustainable.

“During the third quarter comparable sales decreased 14.6% at Jos. A. Bank, far below the Company’s earlier expectations,” Men’s Wearhouse said in a statement. “This decrease was primarily driven by a decline in traffic as the Company began the transition away from the buy-one-get-three promotional events.”

The company also slashed its forecast for earnings, saying adjusted earnings per share will be in the range of $US0.46 to $US0.51, down from an earlier target of $US0.87.

The shares are down 21% in after hours trading.

Deals on men’s suits, sport coats, sweaters, and more helped make Jos. A Bank a household name.

But Men’s Wearhouse, which acquired Jos. A Bank last year, recently began phasing out the promotions, saying they were no longer sustainable.

NOW WATCH: The one reason Zara is dominating the fashion industry right now

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.