Men's Wearhouse (MW) Tops Q1 EPS by 2c, Enters Agreement with Macy's (M) for Tuxedo Rental Shops
Men's Wearhouse (NYSE: MW) reported Q1 EPS of $0.54, $0.02 better than the analyst estimate of $0.52. Revenue for the quarter came in at $885.1 million versus the consensus estimate of $857.67 million.
"We made another important step in the Jos. A. Bank integration as we completed the merchandise systems conversions at the beginning of May," said CEO Doug Ewert. "This conversion will help us in unlocking retail inventory efficiency and distribution synergies. Cost synergies continue to be on plan and we are beginning to see some revenue synergies. We continue to expect Jos. A. Bank comparable sales to be down in the second quarter with improvement in the back half of the year and gross margin increases to follow a similar pattern."
"We continue to be confident in our 2015 and 2017 EPS guidance," concluded Ewert.
First Quarter Net Sales Summary – Fiscal 2015 | ||||||
Net Sales | Comparable Sales Change | |||||
Net Sales Change | CurrentQuarter | % of Total Sales | Current Quarter | Prior YearQuarter | ||
Total Retail Segment | 43.7% | $250.6 | $824.3 | |||
Men's Wearhouse | 8.4% | $35.4 | $456.4 | 52% | 6.8% | 2.9% |
Jos. A. Bank | n/a | $216.1 | $216.1 | 24% | (1.5%) | 8.4% |
Moores | (9.5%) | ($5.0) | $47.5 | 5% | 0.8% | 6.0% |
K&G | 3.9% | $3.6 | $96.0 | 11% | 7.3% | (1.2%) |
MW Cleaners | 7.4% | $0.6 | $8.3 | 1% | ||
Corporate Apparel Segment | 7.0% | $4.0 | $60.8 | 7% | ||
Total Company | 40.4% | $254.6 | $885.1 | |||
Additionaly, Men's Wearhouse also announced it has signed a 10-year agreement with Macy's, Inc. to operate men's tuxedo rental shops inside 300 Macy's stores. No other terms were disclosed.
Doug Ewert, Men's Wearhouse chief executive officer, stated, "As the nation's leading provider of tuxedo rental products and services, we are very excited to team with Macy's for the next decade to provide their customers with exceptional tuxedo rental services inside of 300 Macy's stores across the country."
The new Macy's Tuxedo Shop is expected to be located in or near the Men's Department and will have dedicated space staffed by our formalwear professionals. The Men's Wearhouse will begin operating 17 pilot tuxedo shops in fall 2015, then begin the rollout of the remaining shops with the expectation that 300 shops will be open by fall 2016. Macy's and Men's Wearhouse will also collaborate to develop a digital tuxedo rental shop on macys.com.
"This transaction benefits both Macy's and Men's Wearhouse," said Ewert. "Most importantly, it benefits formalwear customers by creating additional channels for brides and grooms when they're choosing tuxedos, shirts, shoes and accessories for their weddings."
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