Men's Wearhouse (MW) Tops Q2 EPS by 2c, Revenue Light, Maintains Guidance

Men's Wearhouse (NYSE: MW) reported Q2 EPS of $1.07, $0.02 better than the analyst estimate of $1.05. Revenue for the quarter came in at $920.1 million versus the consensus estimate of $946.76 million. Comparable sales increased 3.1% at Men's Wearhouse, 0.7% at Moores and 6.7% at K&G.

Doug Ewert, Men's Wearhouse chief executive officer, stated, "We continue to be pleased with the performance of our legacy brands. Comparable sales increased 3.1% at Men's Wearhouse, 0.7% at Moores and 6.7% at K&G. Excluding rental revenue, Men's Wearhouse clothing comps were 6.5% driven by higher average unit retails. Men's Wearhouse comparable rental revenue decreased 3.3% which was slightly better than internal

"The Jos. A. Bank business struggled in the second quarter with comparable sales decreasing 9.4%," added Ewert. "Now that we have a full year under our belt, we have become even more convinced that changing the promotional messages to be clear and compelling without unusual quantity requirements, like buy one get three free offers, will broaden the appeal of the Joseph A. Bank brand. This fall we will be well positioned to fully implement our strategy as all systems will be integrated, new products will be introduced, the new customer rewards program will be available, we will have new sales force incentives supported with extensive training and we will have new marketing strategies in place. Comparable sales increased 3.1% at Men's Wearhouse, 0.7% at Moores and 6.7% at K&G.

"We are focused on rebuilding the Jos. A. Bank profit model. In doing so, we expect top-line volatility as we establish a promotional model with broader customer appeal and strengthen the margin profile. Taking this into consideration, as well as the impact of the second quarter results, we still expect to be within our EPS guidance range of $2.70 to $2.90 and continue to be confident in our 2017 guidance," concluded Ewert.

For earnings history and earnings-related data on Men's Wearhouse (MW) click here.

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