On the day of The Men’s Wearhouse Inc.’s annual meeting at the Fairmont Hotel here Wednesday morning, the company completed the long-awaited acquisition of its competitor, Jos. A. Bank Clothiers Inc.
“We’re off to the races,” Doug Ewert, president and chief executive officer, told WWD following the meeting.
The acquisition was completed through an all-cash tender offer for the outstanding shares of Jos. A. Bank common stock at $65 each. The tender offer expired at midnight on Tuesday, New York time, with 23.6 million shares validly tendered.
The combined firms together have more than 1,700 stores, 26,000 employees and sales of $3.5 billion on a pro forma basis.
Ewert said that because the businesses have distinct customer bases, they will be kept separate. And Banks’ famed buy-one-get-three-free suit promotion, which was discontinued in March, won’t be coming back.
“I don’t think long term that is very sustainable pricing,” Ewert said. “We’ll work to rationalize their pricing strategies as we try to develop more sustainable pricing for that brand, which they have already started. They’ve had nice positive comps for the last three quarters, and what they attribute it to is they have been weaning off those deep discounts.”
The promotions were so over the top that “Saturday Night Live” actually spoofed the company, saying the suits are cheaper than paper towels and ideal for mopping up spills.
“I’ve seen it,” Ewert said with a chuckle. “I’m glad that wasn’t on my watch.”
The annual meeting was short and sweet, clocking in at eight minutes as shareholders approved the reelection of eight board members and the new executive compensation package.
Afterward, Ewert said that Men’s Wearhouse’s suit business is good.
“We’re pleased with the slim fit, which is now representing over 45 percent of our total apparel business,” Ewert said. “We’re in the middle of launching the Joseph Abboud [Heritage] collection, which is in a little over half our stores now, and we’re very pleased with the progress for that. It’s not just tailored clothing — it’s all other categories as well.”
The company has about 650 full-line Men’s Wearhouse stores in the U.S. and another 120 in Canada, which just received the Abboud collection two weeks ago, he said. Every store that has the brand also offers Abboud’s new made-to-measure suit program, which is also performing well, he said.
All stores will eventually carry the Abboud apparel, he noted.
Ewert said the acquisition of Bank will be “accretive to our earnings in the first full year of operations [and] achieve $100 million to $150 million of run-rate synergies by the end of fiscal 2016.”
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.