Men's Wearhouse Inc (MW: Quote) Thursday reported a decline in first-quarter profit, hurt mostly by expenses that offset a marginal increase in sales. Nonetheless, the retailer's results topped Wall Street estimates.
Men's Wearhouse, which is acquiring smaller rival Jos. A. Bank Clothiers, said the results were despite the Easter-driven tuxedo timing shift that moved revenue to the current quarter.
Houston, Texas-based Men's Wearhouse posted first-quarter net earnings to stockholders of $16.5 million or $0.34 per share, compared with $33 million or $0.65 per share last year.
Results for the quarter include $26.5 million in costs related to strategic projects, primarily Jos. A. Bank and cost reduction initiatives.
Excluding items, adjusted earnings for the quarter were $33 million or $0.69 per share.
On average, five analysts polled by Thomson Reuters expected earnings of $0.67 per share for the quarter. Analysts' estimates typically exclude one-tine items.
Men's Wearhouse, which operates 1,128 stores, said sales for the quarter grew 2.3 percent to $630.5 million from $616.5 million a year ago. Analysts expected sales of $627.7 million for the quarter.
Comparable store sales at Men's Wearhouse brand was up 2.9 percent for the quarter, while Canadian brand Moores climbed 6 percent.
In March, Men's Wearhouse agreed to acquire Jos. A. Bank Clothiers Inc (JOSB) for $1.8 billion, ending a prolonged takeover tussle. The deal gave rise to antitrust concerns, but recently the Federal Trade Commission granted clearance, saying the merger is unlikely to harm consumers.
Upon closure of the deal, the combined company will have more than 1,700 stores in the U.S., with around 23,000 employees and adjusted sales of $3.5 billion.
Men's Wearhouse stock closed Thursday at $51.35, down $0.28 or 0.54%, on a volume of 0.70 million shares on the NYSE. In after hours, the stock gained $0.65 or 1.27%.
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by RTT Staff Writer
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