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.RELATED CONTENT: Click Here for More Earnings Coverage >>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.
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion
Exclusive: Cate Blanchett has been named the first global beauty ambassador for @armanibeauty. Blanchett has been the face of the brand’s Sì fragrance franchise since 2013, and is now representing all of the label’s beauty categories including makeup and skin care. #wwdbeauty (📷: @zefashioninsider)