Boston, MA 06/06/2014 (wallstreetpr) – Chain of specialty retailer of men’s suits and tuxedo rental product provider, The Men’s Wearhouse, Inc. (NYSE:MW) announced better than expected results for the first quarter thus igniting fresh interest in the stock.
1Q Results
The Men’s Wearhouse, Inc. (NYSE:MW) reported net earnings of $16.46 million or earnings of 34 cents a share for the first quarter, sharply down from $32.96 million or 65 cents a share in the year earlier period. However, on an adjusted basis, net earnings were $33.1 million, flat with last year and earnings rose to 69 cents a share from 65 cents a share in the year-ago quarter. This is well ahead of the Street analysts’ estimation of 65 cents a share for the latest quarter.
Total revenue grew 2.3% to $630.5 million from $616.5 million in the previous year quarter. Revenue is in line with the Wall Street analysts’ predictions. The company’s sales were driven by 2.4% growth in its retail segment and corporate apparel’s 0.8% uptick in the comparable period. Its comparable sales advanced 2.9% during the period under review.
Other Metrics
The Men’s Wearhouse, Inc. (NYSE:MW) said that its gross margin witnessed 13 basis points fall, as a result, of promotional events besides a fall in the tuxedo rental services due to higher royalty costs. While the retail division’s gross margin rose 2.2%, corporate apparel gross margin slipped 1.9%.
The company’s adjusted selling, general and administration costs rose 1.9% to $229.6 million, as a result, of higher advertising spends during the quarter. However, it excluded $26.5 million expenses about various strategic projects and cost cutting measures.
CEO Speaks
The Men’s Wearhouse, Inc. (NYSE:MW) president and CEO Doug Ewert said that it is looking forward to completing the amalgamation with Jos. A Bank in the next few weeks to allow the company reaps the benefits of the amalgamation. He added that Moore’s revenue was unfavorably impacted by currency rates though it performed well.
