“BOGO” was a “no-go” for The Men’s Wearhouse Inc. in the second quarter.
The nation’s largest men’s specialty store retailer, currently in the midst of a “buy one, get one for $100” suit promotion, saw its shares fall more than 14 percent in after-hours trading Wednesday after it missed consensus estimates on both the top and bottom lines and lowered its full-year estimates for earnings and sales.
In the three months ended Aug. 3, net income fell 27.7 percent to $42.9 million, or 85 cents a diluted share, from $59.4 million, or $1.15, in the prior-year quarter. Sales eroded 2.3 percent to $647.3 million from $662.3 million in the comparable 2012 period, with all four categories — retail clothing product; tuxedo rental services; alterations and other services, and corporate apparel — down at least 1 percent and tuxedo rentals down 4.2 percent.
Excluding special charges, earnings per share were $1.01, 13 cents below the consensus estimate of $1.14. Sales were expected to hit $669.7 million, $22.4 million higher than those tallied.
“Retail clothing sales during the second quarter were below our internal plan as we experienced a decline in customer traffic compared to last year’s second quarter,” said Doug Ewert, president and chief executive officer. “We believe this is primarily due to macro issues affecting the apparel retailing space.”
He said recent actions, including the acquisition of the parent company of Joseph Abboud for about $97.5 million and an accelerated share repurchase program, will, along with initiatives to expand margins and stores, “continue to unlock value for our shareholders into 2014 and beyond.”
The quarter was marked not only by the purchase of JA Apparel but also by a bruising battle with its founder, former ceo and longtime advertising spokesperson, George Zimmer, resulting in Zimmer’s resignation as a director of the company.
Abboud was named chief creative director of the company in December. Zimmer’s spot on the company’s board has been filled by Allen Questrom, former ceo of J.C. Penney Co. Inc., Federated Department Stores, Barneys New York and Neiman Marcus.
Sales were down on a net basis at all three nameplates — Men’s Wearhouse, K&G and Moores — and off on a same-store basis 2.1, 5.1 and 5.5 percent, respectively. Some of the declines were attributable to a shift in tuxedo rentals to the first quarter from the second quarter of 2012, the company said.
Full-year guidance for EPS was lower to $2.40 to $2.50, 30 cents lower than the prior projection. Projections for same-store sales were lowered 2 percent for Men’s Wearhouse and Moores. The company continues to seek strategic alternatives for the K&G unit.
Shares were down 24 cents, or 0.6 percent, to $38.77 in regular trading Wednesday, but fell an additional $5.45, or 14.1 percent, to $33.32 in the first hour after the results were released at 5:30 p.m.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)