Men’s Wearhouse likes the way Q2 earnings look

Fremont, Calif. – The Men’s Wearhouse Inc. likes the way its second quarter earnings look — even if its Jos. A. Bank unit continues to struggle.



Net earnings almost quadrupled to $47.8 million from $12.3 million, beating Wall Street estimates.



Higher retail clothing margins and lower advertising expenses helped Men’s Wearhouse record impressive profit growth. Total net sales also performed well, increasing 15% to $920.1 million from $803.1 million. Strong performance in the Men’s Wearhouse division offset struggles in the Jos. A. Bank division. Sales in the corporate apparel division also fell, due to currency translation.



Same-store sales rose 3.9% in the Men’s Wearhouse segment, 0.7% in the Moore’s segment and 6.7% in the K&G segment. Same-store sales at Jos. A. Bank dropped 9.4%.



Doug Ewert, CEO, said the company is ready to improve performance in the Jos. A. Bank division, which it purchased in June 2014.



"Now that we have a full year under our belt, we have become even more convinced that changing the promotional messages to be clear and compelling without unusual quantity requirements, like buy one get three free offers, will broaden the appeal of the Joseph A. Bank brand,” said Ewert. “This fall, we will be well-positioned to fully implement our strategy as all systems will be integrated, new products will be introduced, the new customer rewards program will be available, we will have new sales force incentives supported with extensive training and we will have new marketing strategies in place.”