US: Men’s Wearhouse Q4 losses widen as sales dip
- Q4 adjusted net loss US$17.9m versus $4.9m
- Q4 adjusted revenues down 2.6% to $560.6m
- CEO blames weather and weak consumer spending
The Men’s Wearhouse suffered an increased adjusted net loss in the fourth quarter, with retail sales in particular hit by bad weather and poor consumer sentiment.
The US company’s 3.3% decline in retail revenues in the three months to 1 February was partially offset by a 3.9% increase in corporate apparel revenues, leaving full-year revenues down 0.6%.
Its Men’s Wearhouse brand suffered a 6.1% revenue decline in the fourth quarter, Moores was down 13.6%, K&G fell by 15% and MW Cleaners edged down 0.5%.
“We were not immune to the effects of weak consumer spending sentiments and severe weather disruption that impacted most retailers in December and January,” said Doug Ewert, president and CEO.
“Tuxedo and corporate apparel sales were in line with internal expectations, while clothing sales in all three retail chains were lower than expected.”
But, he added, business had improved “significantly” in February.
The results announcement comes after Men’s Wearhouse agreed to acquire Jos A Bank Clothiers in a $1.8bn deal, following a five-month takeover tussle between the two companies.
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