Home / Knowledge / News / Apparel/Garments / Men's Wearhouse reports fiscal 2008 third quarter results
Men's Wearhouse reports fiscal 2008 third quarter results
20
Nov '08
The Men's Wearhouse announced its consolidated financial results for the third quarter ended November 1, 2008.

Diluted earnings per share were $0.28 for the third quarter ended November 1, 2008. Adjusted diluted earnings per share were $0.30 after excluding $1.1 million (net of tax), $0.02 per diluted share outstanding, of closure costs incurred in connection with the Company's previously announced closure of the Canadian based manufacturing facility operated by the Company's subsidiary, Golden Brand. This compares to adjusted diluted earnings per share guidance given October 8, 2008 of $0.24 to $0.28.

Third Quarter Review
-- Total Company sales decreased 10.2% for the quarter.

-- Clothing product sales, representing 72.75% of fiscal third quarter 2008 total net sales, decreased 12.9% due to decreases in the Company's comparable store sales primarily driven by a reduction in store traffic levels.

-- Tuxedo rental sales, representing 20.99% of fiscal third quarter 2008 total net sales, increased 0.4%.

-- Gross margin before occupancy costs, as a percentage of total net sales, decreased 80 basis points from 60.84% to 60.04%. Decreases in clothing product margins, as a percentage of related sales, of 154 basis points were offset by a higher margin tuxedo rental business that increased from 18.76% to 20.99% as a percentage of total sales.

-- Occupancy costs increased, as a percentage of total net sales, by 205 basis points from 13.89% to 15.94% primarily due to the deleveraging effect of reduced comparable store sales.

-- Selling, general, and administrative expenses were $179.0 million. Excluding $1.8 million in costs associated with the closing of Golden Brand, SG&A expenses of $177.1 million were lower compared to the prior year quarter of $181.3 million and as a percentage of total net sales increased 314 basis points from 35.40% to 38.54%. The basis point increase was primarily due to the deleveraging effect of reduced comparable store sales.

-- Operating income was $23.8 million. Excluding $1.8 million in costs associated with the closing of Golden Brand, operating income was $25.6 million or 5.57% of total net sales compared to $59.2 million, or 1.55% of total net sales for the same period last year.

-- The effective tax rate for the 2008 third quarter was 38.0%.

Fourth Quarter 2008 Guidance
The Company expects diluted earnings per share of $0.00 to a loss of $0.18 for the fourth quarter of 2008. This guidance assumes same store sales at MW, including MW Tux stores, to decrease in the mid single digit to low double digit range, at K&G to decrease in the high single digit to low double digit range and at Moores to decrease in the low single digit range.

Fiscal 2008 Guidance
On July 11, 2008, the Canadian based manufacturing facility operated by the Company's subsidiary, Golden Brand, was closed. The pre tax cost to close the facility was $10.0 million or the equivalent of $0.12 per diluted share outstanding for the fiscal year. The pre tax cost for the first quarter was $0.9 million or the equivalent of $0.01 per diluted share outstanding. The pre tax cost for the second quarter was $7.3 million or the equivalent of $0.09 per diluted share outstanding. The pre tax cost for the third quarter was $1.8 million or the equivalent of $0.02 per diluted share outstanding.

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search