Men’s Wearhouse to open 300 tuxedo shops in Macy’s

Fremont, Calif. —Men's Wearhouse on Thursday announced it had signed a 10-year agreement with Macy's to operate men's tuxedo rental shops inside 300 Macy’s locations. The shops are expected to be located in or near the men’s department.

Men's Wearhouse will begin operating 17 pilot tuxedo shops in fall 2015, and expects the remaining shops to be open by fall 2016. Macy's and Men's Wearhouse will also collaborate to develop a digital tuxedo rental shop on macys.com.

“This transaction benefits both Macy's and Men's Wearhouse,” Men's Wearhouse CEO Doug Ewert said. “Most importantly, it benefits formalwear customers by creating additional channels for brides and grooms when they're choosing tuxedos, shirts, shoes and accessories for their weddings.”

The news of the collaboration with Macy’s comes as Men’s Wearhouse announced that its net income fell to $10.4 million in the first quarter of fiscal 2015 from $16.5 million a year earlier amid rising sales and selling, general and administrative (SG&A) costs.

Total net sales increased 40% to $885.1 million from $630.5 million, driven by the June 2014 acquisition of Jos. A. Bank.

Same-store sales rose 6.8% at Men’s Wearhouse, 7.3% at K&G and 0.8% at Moore’s. But comp-sales fell 1.5% at Jos. A. Bank. All figures include e-commerce sales.

“We are very pleased to report another strong quarter with all brands performing well,” Ewert said.“Traffic increased year-over-year at all of our U.S. brands and while Moores' traffic decreased, their average ticket increased. While the retail business has continued to perform well, the tuxedo business slowed this quarter. Based on recent studies, the overall wedding industry is experiencing a slow-down, but we believe that our market share is holding and possibly increasing.”