The Men’s Wearhouse Inc. registered lower third-quarter earnings and a modest uptick in sales, but remained mostly mum on its $1.2 billion bid for competitor Jos. A. Bank Clothiers Inc.
This story first appeared in the December 12, 2013 issue of WWD. Subscribe Today.
Bank made a very public play for Men’s Wearhouse in October, offering $48 a share. And while Men’s Wearhouse roundly rejected that offer, the company did acknowledge the strategic rationale of a combination and last month went on the offensive, offering to buy the smaller Bank.
The takeover tit-for-tat came up only in passing in Men’s Wearhouse’s earnings statement, but analysts will have their chance to press executives for information on the possibility of a deal and on quarterly results during a conference call Thursday morning.
Men’s Wearhouse’s third-quarter net profits fell 21.8 percent to $38.2 million, or 79 cents a diluted share, from $48.8 million, or 95 cents, a year earlier. Stripping away costs associated with the recently acquired Joseph Abboud business, adjusted earnings fell to 90 cents a share from 95 cents a year ago.
The first read from investors was generally cautious following the afternoon report, and shares of the company slipped 1 cent to $50.46 in after-hours trading.
Sales for the quarter ended Nov. 2 increased 2.8 percent to $648.9 million from $631 million. Comparable-store sales rose 2.6 percent for the company’s flagship Men’s Wearhouse brand, which accounts for two-thirds of overall revenues.
Doug Ewert, president and chief executive officer, said he was “very pleased” with the Men’s Wearhouse comp result.
Ewert also noted that the Abboud designer brand had been introduced to several large markets and would be rolled out to all stores. Men’s Wearhouse spent roughly $97.5 million to acquire the Abboud business and a U.S. tailored apparel factory in August.