Men's Wearhouse Q2 net sales up 24.1 percent

REPORT_ The Men's Wearhouse, announcing its results for the fiscal second quarter and six months ended August

2, 2014 said that net sales at Men's Wearhouse stores, which represented 56 percent of total second quarter sales, were up 5.6 percent from last year's second quarter and comparable sales increased 4.4 percent. Total consolidated net sales increased 24.1 percent or 155.8 million dollars to 803.1 million dollars from 647.3 million dollars. Total net sales increased 13.4 percent or 169.8 million dollars to 1,433.6 million dollars from 1,263.8 million dollars.

Results for Jos. A. Bank are included in the financial statements beginning June 18, 2014, the date of the closing of the acquisition. GAAP diluted EPS for fiscal second quarter 2014 was 0.25 dollars and adjusted EPS, 1.10 dollars excluding non-operating items.

Commenting on the results, Doug Ewert, Men's Wearhouse President and Chief Executive Officer, said, “During the second quarter, we closed the Jos. A. Bank acquisition and we are pleased with the progress we are making on the integration. Second quarter adjusted earnings per share of 1.10 dollar were driven by strong performances at Men's Wearhouse, Moores and K&G, posting comparable sales increases of 4.4 percent, 10.2 percent and 5.6 percent, respectively. Additional highlights include excellent results in tuxedo rental, with a US comparable sales increase of 9.1 percent, and from our Joseph Abboud roll out, which will be complete in the coming weeks.”

Jos. A. Bank was 14 percent of the company's total second quarter sales reflecting sales since June 18, 2014, the acquisition date. Comparable sales for the full second quarter increased 1 percent with increases in units sold per transaction which offset decreases in clothing product average unit retails and transactions per store. Moores, Canadian retail brand, was 10 percent of the total second quarter sales and had a comparable sales increase of 10.2 percent. Net sales change for Moores only increased 4.7 percent due to an unfavorable change in the currency translation rate. K&G was 11 percent of the company's total second quarter sales with a comparable sales increase of 5.6 percent. The Corporate Apparel segment, which represented 8 percent of total second quarter sales, had a sales increase of 23.9 percent.

Retail segment sales for the second quarter increased by 24.1 percent or 143 million dollars due to 113.7 million dollars in sales at Jos. A. Bank since the closing of the acquisition and an increase in comparable sales at all other retail brands. Corporate apparel sales increased by 23.9 percent. Year-to-date retail segment sales increased by 13.6 percent or 156.5 million dollars due to 113.7 million dollars in sales at Jos. A. Bank since the closing of the acquisition and an increase in comparable sales at all other retail brands. Corporate apparel sales increased by 12.1 percent, or 13.3 million dollars.

GAAP net earnings for the first half were 28.7 million dollars compared to GAAP net earnings of 76 million dollars last year. Adjusted net earnings were 86 million dollars, or 1.78 dollars adjusted earnings per share compared to adjusted net earnings of 84.1 million dollars, or 1.66 dollars adjusted diluted earnings per share last year.