Shares of Men’s Wearhouse Inc. dropped 9.9 percent to $51.66 today and led global fashion stocks lower as the company sought to recast itself following its acquisition of Jos. A. Bank.
Doug Ewert, president and chief executive officer of Men’s Wearhouse, said at an analyst meeting that the combined Men’s Wearhouse and Jos. A. Bank aiims to become the largest men’s apparel retailer in the U.S. Ewert and the Men’s Wearhouse team said that the company is already the largest men’s specialty retailer and the third largest seller of men’s apparel in the U.S. after Macy’s and Kohl’s.
The company also said its second-quarter Men’s Wearhouse comparable store sales rose 3.6 percent through July 19. Jos. A. Bank’s comps inched up 2.4 percent.
Men’s Wearhouse showed the weakest performance in the 100-issue WWD Global Stock Tracker, which slipped 0.1 percent to 98.70. Wall Street was also down, with the Dow Jones Industrial Average off 0.4 percent at 16,912.11.
Markets in Europe and Asia were on the rise. Among the indices gaining were the Hang Seng Index in Hong Kong, which rose 0.9 percent to 24,640.53, and the FTSE MIB in Milan, which rose 0.7 percent to 21,085.12.
The strongest fashion stock of the day was Next, which rose 2.5 percent to 66.84 pounds, or $113.47.
Next, which is Britain’s second largest apparel retailer, raised its guidance for annual sales and profit for the second time in three months after a strong second quarter performance.
The firm, which has over 500 stores in Britain and Ireland and about 200 stores elsewhere, now expect a 2014-15 pretax profit of 775 million pounds to 815 million pounds, or $1.32 to $1.38 billion at current exchange.
That compares to previous guidance of 750 million pounds to 790 million pounds, and would represent growth of 11 to 17 percent on the 695 million pounds made in 2013-14.