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.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)