X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-The Men’s Wearhouse posted higher sales and earnings for the third quarter ended Nov. 3, boosted in part by tuxedo rentals, but US comparable store sales decreased, company officials reported Wednesday. The dip in comp sales resulted from weaker traffic and a lower average ticket at the chain’s K&G Group stores, a slide attributed in part to the slowing economy, but Men’s Wearhouse chairman and CEO George Zimmer commented that the company has seen downturns before and has weathered them well.

“Having managed through six economic slowdowns since our inception in 1973, the Men’s Wearhouse is prepared to manage now,” Zimmer said in the company’s conference call with financial analysts. “Managing through macroeconomic uncertainty is not something that we as a company are unfamiliar with,” Zimmer said. He added, “Economic uncertainty, in fact, encourages industry consolidation, which we have benefited from in the past.”

Men’s Wearhouse reported earnings of $37.1 million and 69 cents per share versus $31.8 million and 58 cents per share for the third quarter last year. Total company sales increased 19.1% for the quarter to $512.1 million, with comparable store sales decreasing 2.1% for the company’s US-based stores. The slide in comp store sales came in below expectations of flat to slightly higher comps that the chain had forecast.

The Men’s Wearhouse expanded considerably this year with its acquisition in April of After Hours Formalwear Inc., operator of 509 After Hours Formalwear and Mr. Tux store fronts. Zimmer said that Men’s Wearhouse has completed most of the major steps involved in merging the After Hours locations with the Men’s Wearhouse operations, so that, beginning in January, “We will emerge under a unified brand that we will deliver through more than 1,000 store fronts.”

Zimmer said that Men’s Wearhouse “has more work to do to fully realize the potential inherent in our K&G operations,” which represents approximately 20% of the company’s consolidated sales. “Macro-economic conditions played a significant part” in K&G’s performance, but Men’s Wearhouse is nonetheless “evaluating tactical measures” to improve performance at K&G. The Men’s Wearhouse CEO noted that the company’s core operation of the Men’s Wearhouse and its counterpart in Canada both enjoy No. 1 market share in suits in their countries, and both are tallying positive comps year-to-date.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.