The Men’s Wearhouse Inc. late Monday reported lower first-quarter earnings that came in well in excess of analysts’ estimates and used the opportunity to show off improvements in its balance sheet as the retailer gets closer to a takeover of bankrupt Filene’s Basement.
During the three months ended May 2, the Houston-based men’s wear specialty chain logged net income of $5.3 million, or 10 cents a diluted share, 47.1 percent below the $9.9 million, or 19 cents, reported for the year-ago quarter. But the bottom-line results were well in excess of analysts’ estimates of a 1-cent loss and the company’s guidance, provided in March, of a breakeven performance to a loss in the midsingle digits.
Revenues declined 5.5 percent to $464.1 million from $491.1 million a year ago as increases of 1.7 and 3.8 percent in tuxedo rentals and alterations, to $71.4 million and $33.7 million, respectively, failed to offset a 7.6 percent contraction in apparel sales to $359.1 million. Same-store sales fell 7 percent at Men’s Wearhouse and 4.3 percent at Moores, but rose 2.3 percent at K&G.
Gross margin fell back to 40.5 percent of sales from 43.1 percent in the 2008 quarter.
The firm’s K&G Acquisition Corp. unit prevailed over several companies, including Syms Corp., in the bidding for bankrupt Filene’s Basement late Friday night, agreeing to pay more than $60 million for 17 to 20 stores and inventory. A hearing is scheduled for Wednesday in Delaware bankruptcy court to consider the bid, and Men’s Wearhouse has rescheduled its conference call for Thursday, after the hearing, one day later than originally planned.
Company officials declined to comment further Monday.
The first-quarter results came packaged with a balance sheet that showed improvement in the retailer’s cash and debt positions. Cash and cash equivalents at the end of the first quarter stood at $107.5 million, nearly $31 million above their level a year ago. Long-term debt fell to $39.2 million from $106.9 million. Meanwhile, inventories stood at $448 million, down 8.2 percent from their year-ago level. Shares of Men’s Wearhouse closed down 10 cents, or 0.6 percent, at $17.87 on Monday, prior to the earnings announcement, but were up 9.1 percent in after-hours trading.
The company projected earnings of 56 to 60 cents a diluted share in the second quarter with a same-store sales decline of 4 to 6 percent in its apparel business and a corresponding increase of 3 to 5 percent in tuxedo rentals.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye