• Q3 adjusted net profit down 7% to US$40.1m
  • Net sales up 37.3% to $890.6m
  • Jos A Bank comps below expectations
Men’s Wearhouse revenues were up 2% in the quarter

Men’s Wearhouse revenues were up 2% in the quarter

Clothing retailer The Men’s Wearhouse recorded a decline in third-quarter profit, despite a notable revenue boost from new acquisition Jos A Bank.

Retail sales were up 42.3% to $819.2m in the three months to 1 November, despite an 8.1% reduction in Jos A Bank comparable store sales, worse than the company expected.

Men’s Wearhouse revenues were up 2% to $436.1m, rising 2.2% on a comps basis, while Jos A Bank contributed $233.3m in revenues.

Moores sales rose 1.9% to $68.7m, with comps up 8.8%, while K&G revenues increased 4.4% to $72.8m, alongside a 4.4% comps increase.

“During the quarter, Jos A Bank’s comparable sales were slightly below our internal expectations but, as part of our operating strategy for the brand, we are very encouraged by the positive increase of 123 basis points in the maintained product margin rate,” said CEO Doug Ewert. 

Stifel analyst Richard Jaffe said the result was slightly short of its expectations, but added: “We continue to view the acquisition as a positive for Men's Wearhouse and believe that the combined entity has significant strategic benefits and opportunities as Men's Wearhouse incorporates Jos A Bank into their shared services model.

“These include purchasing efficiencies, optimisation of marketing practices including electronic media purchases, and the elimination of duplicative operating functions.

“Qualitatively, the benefit of managing one’s former rival is significant.”