Men's Wearhouse Inc.
) - one of the largest specialty retailers of menswear in the
United States and Canada - recently reported its fiscal
third-quarter 2012 (ended October 27, 2012) earnings of 95 cents
a share that came below the Zacks Consensus Estimate of 97 cents.
However, earnings soared 20.3% from 79 cents reported in the
comparable prior-year quarter. Moreover, including one-time
items, earnings surged 23.4% year over year.
Total net sales increased 7.9% year over year to $631 million
and came in line with the Zacks Revenue Estimate.
s total revenue (representing 89.4% of total sales) increased
7.7% year over year to $564 million, reflecting a 6.5% increase
in Retail Clothing Product to $401.7 million, coupled with 11.3%
increase in Tuxedo Rental Services to $124.6 million.
Alteration and other services division's sales increased 9.3% to
Corporate Apparel Segment'
s (representing 10.6% of total sales) revenue improved 10.1% to
$66.9 million compared with $60.8 million in the year-ago
Gross profit increased 8.4% to $290.7 million from $268.2
million, while gross profit margin expanded 20 basis points year
over year to 46.1%, reflecting a decrease in cost of sales as a
percentage of total revenue.
Operating income augmented 20.8% to $72.5 million, while
operating margin expanded 122 basis points to 11.5% on the back
of lower SG&A expenses as a percentage of sales.
Other Financial Aspects
As of October 27, 2012, Men's Wearhouse has a debt-free
balance sheet with cash and cash equivalents of $138 million and
shareholders' equity of $1,119.6 million. Capital expenditure,
during the first nine months of fiscal 2012, stood at $90.1
Following the negative comparable store sales results in
November 2012 and lingering macro concerns, Men's Wearhouse
lowered its fiscal 2012 and fourth-quarter earnings guidance. The
company now expects GAAP earnings per share in the range of
$2.57-$2.63 for fiscal 2012, down from its earlier guidance range
For the fourth quarter 2012, the company expects GAAP earnings
to range within loss of 5 cents to one cent earnings,
significantly down from its earlier guidance of 12-15 cents
At the end of the quarter, the company had 1,144 stores with
7,062.6 sq ft area compared with 1,175 stores with 7,020.6 sq ft
area in the prior-year quarter.
Currently, Men's Wearhouse - a peer of
Jos. A Bank Clothiers Inc
) - retains a Zacks #2 Rank, which translates into a short-term
JOS A BANK CLTH (JOSB): Free Stock Analysis
MENS WEARHOUSE (MW): Free Stock Analysis
To read this article on Zacks.com click here.