Jos. A. Bank weighs on Men's Warehouse profits

The acquisition of Jos. A. Bank in June weighed heavily on Men’s Warehouse in the third quarter, as the company reported a profit decline of 82% due to expenses related to the integration of the rival clothier’s operations.

Men’s Warehouse reported profits of $6.8 million in the third quarter ending Nov. 1, from $38.2 million in the year-ago-period and below Wall Street projections. Same store sales rose 2.2%. Total sales increased 37% to $890.6 million from $648.9 million in the prior year. Jos. A. Bank contributed to 28% of sales. Men’s Warehouse said it considered offers to acquire its K&G brand and has decided against selling.

"We continue to be pleased with the progress we are making on the Jos. A. Bank integration,” said Doug Ewert, CEO of Men’s Warehouse. “In addition, we are pleased with the overwhelmingly positive reaction of the Jos. A. Bank employees to our culture and are very optimistic about our opportunities to expand consolidated sales and margins as we complete the integration.”

Men's Warehouse said it will dispose of about $50 million in Jos. A. Bank inventory. Founded in 1973 by George A. Zimmer with a $7,000 initial investment, Men's Warehouse now has more than 1,700 stores under its namesake chain as well as Jos. A. Bank, Moores and K&G. The company plans to open a Joseph Abboud flagship store in Midtown Manhattan in the spring.