Jos. A. Bank’s sales trailed those of its brother divisions in its first 45 days as part of The Men’s Wearhouse Inc.
Bank, acquired on June 18, posted a comparable sales increase of 1 percent during the three months ended Aug. 2, half of which it spent as part of its new parent. By comparison, Men’s Wearhouse stores comped up 4.4 percent, K&G was up 5.6 percent and the Canadian operation Moores, calculated on the basis of local currency, leaped 10.2 percent.
Overall, Men’s Wearhouse sales were up 4.5 percent to $450.3 million, K&G’s up 1.6 percent to $86.2 million and Moores’ up 4.7 to $78.1 million. Bank contributed $113.7 million to revenues during its 45 days on Men’s Wearhouse’s books.
During the quarter, net income contracted 71.5 percent to $12.3 million, or 25 cents a diluted share, from $42.9 million, or 85 cents, in the year-ago quarter. However, removing costs related to the acquisition and integration of Bank and other one-time items, adjusted EPS was $1.10, 4 cents above the consensus estimate of analysts.
Revenues totaled $803.1 million, up 24.1 percent from the $647.3 million tallied in the 2013 quarter. Subtracting Bank’s contribution in the most recent period, revenues rose 6.5 percent to $689.4 million.
Declaring the company “pleased with the progress we are making on the integration” of Bank, Doug Ewert, president and chief executive officer of the company, said that, in addition to the strong comps at the three nameplates, the company registered “excellent results in tuxedo rental, with a U.S. comparable sales increase of 9.1 percent, and from our Joseph Abboud roll-out, which will be complete in the coming weeks.”
Gross margin for the company’s retail segment, which excludes its corporate business, decreased 224 basis points with the inclusion of Bank results and increased 10 basis points without Bank in the tabulation.
At Men’s Wearhouse stores, average transactions per stores rose, offsetting a decrease in average unit retail.
During the first half of the year, net income declined 62.2 percent to $28.7 million, or 60 cents a diluted share, while sales rose 13.4 percent to $1.43 billion. Eliminating sales attributable to Bank, revenues rose 4.4 percent to $1.32 billion.
The firm will hold a conference call Thursday morning to discuss the results.