The Men’s Wearhouse Inc. felt the effects of poor weather in the fourth quarter but has seen the new fiscal year get off to a strong start.
Reporting financial results hours after shaking hands on the deal to acquire Jos. A. Bank Clothiers for $65 a share, or about $1.8 billion, the Fremont, Calif.-based men’s specialty retailer reported that, in the fourth quarter ended Feb. 1, its net loss widened to $30.4 million, or 64 cents a diluted share, from a loss of $3.4 million, or 7 cents, in the final quarter of 2012. Excluding $19 million in pretax special charges for items including impairment, the acquisition and integration of JA Apparel and costs associated with the closure of K&G’s e-commerce functions and “separation costs associated with former executives,” the adjusted loss was 38 cents a share, well beyond the 13-cent loss expected, on average, by analysts.
The company’s top line also came in below estimates, declining 7.9 percent to $560.6 million versus a year-ago level of $608.4 million and expectations of revenues of $611.7 million among analysts.
Even adjusting to eliminate the effect of the 14-week fourth quarter in 2012, the Men’s Wearhouse division’s comps fell 2.5 percent in the fourth quarter. Doug Ewert, president and chief executive officer, estimated that one-quarter of the decline was due to closures caused by inclement weather.
“We were not immune to the effects of weak consumer spending sentiments and severe weather disruption that impacted most retailers in December and January,” he said.
The company took steps to combat the tepid selling climate, including higher advertising expenditures last month as the first quarter of the new retail fiscal year began.
“Subsequently, we have seen business improve significantly in February, as both Men’s Wearhouse and Moores finished the month with approximately 3 percent and 9 percent comparable-sales increases, respectively, overcoming additional weather-related store closures,” Ewert added.
Shares of Men’s Wearhouse, up 4.7 percent to $57.14 during the trading day following news of the Jos. A. Bank deal, slid 1.3 percent back to $56.39 in after-hours trading following the release of results.
For the full year, net income fell 36.4 percent to $83.8 million, or $1.70 a diluted share, from $131.7 million, or $2.55. Revenues were off 0.6 percent to $2.47 billion from $2.49 billion.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)