Speciality retailer of men’s suits and largest provider of rental products, Men’s Wearhouse released its financial results for the third quarter of fiscal year 2015 along with nine months result. The company reported an increase of 5.3 per cent in comparable sales at Men’s Wearhouse with clothing comps of 7.2 per cent attributed to higher transactions per store and rental comps of 0.7 per cent. Comparable sales for K&G too increased, by 3.7 per cent due to the same reason, whereas Moores reported a dip of 5.4 per cent in comparable sales due to weakening macro-economic conditions in Canada. A decline in traffic led to a decrease of 14.6 per cent in comparable sales for Jos. A. Bank.
If the Jos. A. Bank trend continues through the remainder of the quarter, the Company runs at the risk of missing the lower end of the guidance given on November 5, 2015. The Jos. A. Bank clothing margin before occupancy is still expected to be up approximately 500 basis points. “When we acquired Joseph Bank, we knew that we needed to correct the promotional model. However, we underestimated the impact to the near term performance as we began to execute the difficult, but necessary, corrective steps. We remain confident that these steps will restore a long-term, sustainable, profit model and reshape the business for a healthy and growing Jos. A. Bank,” said Doug Ewert, Chief Executive Officer, Men’s Wearhouse. The company is introducing a loyalty programme, and recalibrating their marketing strategy along with introduction of a new incentive programme that aligns with the new selling techniques.
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Total net sales for Men’s Wearhouse decreased by 2.8 per cent, to US $ 865.4 million, with a drop of 2.2 per cent in net sales of retail segment. Total gross margin on the other hand increased by 1 per cent to US $ 373 million. For the nine months, total net sales increased by 14.9 per cent to US $ 2670.6 million, and retail segment sales increased by 16.7 per cent.
The Men’s Wearhouse Inc. is the largest specialty retailer of men’s suits and the largest provider of rental product in the US and Canada with 1,748 stores including tuxedo shops within Macy’s stores. The Men’s Wearhouse, Jos. A. Bank, K&G and Moores stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and non-exclusive merchandise brands and Men’s Wearhouse and Tux stores carry a limited selection.