Men’s Wearhouse Q2 profit hit by Jos. A. Bank acquisition

Non-deductible costs related to the purchase of Jos. A. Bank helped sharply reduce net earnings at The Men’s Wearhouse during the second quarter of fiscal 2014.

The Men’s Wearhouse reported net earnings of $12.3 million, down 71% from $42.9 million the same period a year earlier, although the total still beat Wall Street projections.

Net sales fared better, with the addition of Jos. A. Bank sales boosting them 24% to $803.1 million, from $647.3 million. Jos. A. Bank was 14% of the company's total second quarter sales reflecting sales since June 18, 2014, the acquisition date. Same-store sales rose 1%.

"While we are very early in the Jos. A. Bank integration process, we look forward to communicating our progress and continue to expect between $100 million to $150 million in synergies,” said Doug Ewert, president and CEO of Men’s Wearhouse. “Subsequent to the end of the second quarter, we secured the early termination of the Jim's Formal Wear contract to supply tuxedo rental inventory to Jos. A. Bank.

We will begin leveraging our tuxedo rental inventory and logistics to serve the Jos. A. Bank rental customers for the 2015 wedding season.”