Men’s Wearhouse Q2 profit up on reduced costs

Houston Men’s Wearhouse said Wednesday its second-quarter profit rose 20% even though sales fell as it reduced its operating costs. The results handily beat Wall Street estimates, but its shares dropped in aftermarket trading as the company projected its third-quarter profit would be lower than the Wall Street consensus.

The retailer earned $39.5 million in the three months that ended Aug. 1, up from the $32.8 million it earned a year earlier. Revenue fell 3% to $526.2 million from $545.3 million as customer traffic fell. Analysts had expected $523.3 million in revenue.