US: Men's Wearhouse Q2 profits jump 52%
Men's apparel retailer The Men's Wearhouse has posted a 52% jump in second quarter profit, helped by stronger retail apparel sales at its Men's Wearhouse stores and higher tuxedo rentals from its newly acquired After Hours chain.
Net income rose to $54.2m from $35.6m in the year-ago quarter, and operating income was up to $82.7m from $55.6m.
GAAP diluted earnings per share were $1.00 for the second quarter ended 4 August, compared to $0.65 last year, with After Hours, after acquisition funding costs, contributing $0.24.
Net sales were up 23.6% to $569.3m from $460.6m in the 2006 quarter. They rose 2.8% at Men's Wearhouse, to $299.1m; 3.0% at K&G, to $101.2m; and 12.2% at Moores, to $72.8m.
US comparable-store sales were up 1.1%, which the company said was due to growth in its tuxedo rental business and higher clothing sales at Men's Wearhouse, both of which offset traffic weakness at K&G. However, comps, measured in Canadian dollars, were up 8.4% at the Moores division.
For the third quarter, the company expects same store sales growth in the US to be in a range of flat to +1% and in Canada to increase by 2-4%. For the fiscal year ending 2 February, GAAP diluted earnings per share are forecast in the range of $2.98 to $3.02.
After Hours is expected to add $0.06 to $0.07 in earnings per diluted share during the third quarter, and $0.10 to $0.12 in earnings per diluted share for the year. After Hours revenues for the year are likely to be $208m to $212m.
At the end of the quarter, Men's Wearhouse operated 1269 stores - 553 Men's Wearhouse stores, 500 After Hours units, 116 Moores shops and 100 K&G doors.
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