The company reiterated that position Monday, saying its sales of $2.5 billion are more than double those of Jos. A. Bank’s, and it is in a position “to deliver outsized growth” as an independent business. It is projecting total comparable-store sales growth of 4 to 5 percent in the core Men’s Wearhouse division, driven by an increasing penetration of its newly acquired and higher-margin Joseph Abboud brand. The retailer also plans to add 100 new Men’s Wearhouse stores to its stable, and anticipates “sales growth and margin improvement as a result of new and upscale proprietary brand initiatives” such as the introduction of higher-priced Joseph Abboud rental tuxedos, and the opportunity to build the Joseph Abboud brand to a $300 million to $400 million business.
The investor presentation detailed that, by 2016, its initiatives could impact revenue by $450 million to $550 million, excluding certain items such as the divestiture of the K&G Fashion Superstore business. Those initiatives include contributions from the following: $130 million to $170 million in comparable-store sales, excluding Joseph Abboud; $90 million to $120 million from the Joseph Abboud business; $210 million to $230 million from the expansion of the store base, and another $20 million to $30 million from its MW Cleaners and corporate apparel businesses.
Men’s Wearhouse also said it will have “over $500 million in free cash flow generation over the next three years used to finance continued growth and return of capital to shareholders.”
The presentation said Jos. A Bank’s offer “significantly undervalues” Men’s Wearhouse and merely “exploits recent, short-term decline” in the company’s share price. The bid is also “contingent on raising $2.3 billion in debt and equity capital” that would “likely” be impacted by Jos. A. Bank’s “recent negative operating performance,” and on continued alignment with Golden Gate. Men’s Wearhouse believes the offer would likely result in antitrust issues that would involve “lengthy proceedings” and “have a material adverse effect on our ability to attract and retain key personnel, employees and customers.”
Gilbert Harrison, founder and chairman of Financo Inc., the firm Jos. A. Bank retained to pursue acquisitions to enhance shareholder value, responded on behalf of the company: “We have had a chance to do a preliminary review of their filing. We continue to be disappointed that they have chosen to not engage in any dialogue with us whatsoever. If they have questions or concerns about our offer or our business, I would have thought they would choose to at least give us a chance to explain the strength of our offer and the strength of the combination. It is very disappointing to us and I would think to their shareholders to whom the board has a fiduciary duty. We remain open to meeting with [Men’s Wearhouse chief executive officer] Doug Ewert or any of his advisers at any time.”
Shares of Jos. A. Bank Clothiers Inc. fell 0.1 percent to $49.79 in trading on the Nasdaq, while The Men’s Wearhouse Inc. was down 0.5 percent to $44.31 in Big Board trading.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast