The Men's Wearhouse, Inc.’s MW fourth-quarter fiscal 2014 adjusted loss per share of 3 cents was narrower than both the Zacks Consensus Estimate of loss of 7 cents and prior-year quarter loss of 38 cents. The company’s shares were up 2.2% in the after-market trading yesterday.
Including one-time items, GAAP loss for the reported quarter came in at 75 cents per share compared with a loss of 64 cents reported in the prior-year quarter.
Total net sales during the quarter advanced 65.6% year over year to $928.4 million and easily surpassed the Zacks Consensus Estimate of $916 million. Comparable-store sales (comps) increased 6.8% at Men's Wearhouse and at K&G, 8.6% at Moores but decreased 6.6% at Jos. A. Bank.
Segment Performance
The Retail segment’s total revenue increased 74.1% year over year to $865.9 million, largely attributable to the contribution from Jos. A. Bank, acquired by Men’s Wearhouse in June last year. Sales were also driven by rising comps at all other retail brands of the company.
The Corporate Apparel segment’s revenues slipped 1.4% to $62.4 million.
Adjusted gross profit soared 74% to $363.3 million, while gross profit margin contracted 188 basis points (bps) year over year to 39.1%, attributable to strong margins at all legacy brands.
Adjusted operating income came in at $24.9 million as against a loss of $30.8 million in the prior-year quarter.
Other Financial Aspects
Men’s Wearhouse ended the quarter with cash and cash equivalents of $62.3 million, long-term debt of $1,676.2 million and total shareholders’ equity of $969.8 million. The company generated $94.8 million and incurred $96.4 million as capital expenditure.
As of Jan 31, 2015 Men’s Wearhouse had 1,758 stores compared with 1,124 stores last year.
Outlook
Management also gave an upbeat commentary about the future as the acquisitions will start being accretive to the financial performance. For fiscal 2015, earnings are expected to be in the range of $2.70 to $2.90, up 13.9% to 22.4% over the prior year historical baseline earnings per share of $2.37. Including the KG acquisition, fiscal 2017 earnings are now expected to be in the range of $5.75 to $6.25.
Currently, Men’s Wearhouse has a Zacks Rank #2 (Buy). Other stocks worth considering in the same industry include Aeropostale, Inc. ARO, American Eagle Outfitters, Inc. AEO and DSW Inc. DSW. All carry the same rank as Men’s Wearhouse.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment