Adopting a “more cautious outlook” in light of comparable-store sales decreases in November, The Men’s Wearhouse Inc. reported earnings that missed analysts’ expectations for the third quarter and reduced its guidance for the fourth quarter.
“We experienced negative November comparable-store clothing sales in both the U.S. and Canada as a result of lower traffic levels at our retail stores,” said Doug Ewert, president and chief executive officer of the Houston-based men’s apparel chain. “We believe the storms in the Northeast U.S. at the start of the month, as well as consumer distractions caused by the Presidential election, the ‘fiscal cliff’ and other economic concerns, contributed to our reduced traffic levels. We further believe that a more cautious outlook for traffic trends and clothing sales through the fourth quarter is now warranted.”
In the three months ended Oct. 27, net income grew 22.5 percent to $48.8 million, or 95 cents a diluted share, from $39.9 million, or 77 cents, a year ago. Analysts, on average, expected earnings per share of 97 cents.
Revenues were up 7.9 percent to $631 million, just below analysts’ estimates, from $584.6 million in last year’s third quarter. Prior to the softness in November, quarterly sales were up 10.6 percent at the flagship division, to $407.4 million, on a 9.5 percent comp increase, and up 4.8 percent at Moores, its Canadian unit, to $72.3 million, as comps expanded 3 percent.
K&G proved problematic for the company, however, as sales declined 3.5 percent, to $77.3 million, with comps down 4.2 percent.
“Sales at K&G were disappointing as customers did not respond to our promotions and new marketing campaign as well as expected,” Ewert said.
Fourth-quarter EPS is now expected to land between a loss of 5 cents and a profit of 1 cent, well below the profit range of between 12 and 15 cents provided when second-quarter results were released in September. Comps are expected to be positive at all retail units except for K&G, where the decline is projected to be between 3 and 4 percent.
For the nine months, net income increased 8.6 percent to $135.1 million, or $2.62 a diluted share, as revenues were up 3.3 percent to $1.88 billion.
The company will hold a conference call at 9 a.m. today to discuss the results and projections.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast