Comparable store sales up at each of Men's Wearhouse brands
09 Sep '11
5 min read
Operating income was $89.0 million. Excluding $0.7 million in acquisition integration costs and $1.0 million for a non-cash asset impairment charge, operating income was $90.8 million or 13.9% of total net sales. This compares with the adjusted prior year operating income of $71.8 million or 13.4% of total net sales, which excluded $2.7 million in costs associated with the acquisitions.
The financial results of the combined UK operations, excluding acquisition integration costs, were $0.03 accretive to the Company's second quarter diluted earnings per share. Integration costs were $0.7 million ($0.5 million after tax or $0.01 per diluted share outstanding).
Total inventories of $547.9 million increased 30.3% from the prior year second quarter of $420.4 million. Excluding inventory from the acquired UK operations, inventories increased 9.9% to support increased retail sales and planned promotions in the second half of fiscal 2011.
The Company did not repurchase any shares of its common stock during the second quarter; however, the Company did repurchase 500,000 shares at an average cost of $29.98 per share subsequent to quarter end.
2011 GUIDANCE For the fiscal year, GAAP diluted earnings per share is expected to be in a range of $2.07 to $2.14. Adjusted diluted earnings per share are expected to be in a range of $2.13 to $2.20. Adjusted earnings per share exclude acquisition integration expenses and impairment charges of $4.6 million ($3.0 million after tax or $0.06 per diluted share outstanding).
For the third quarter of the fiscal year, GAAP diluted earnings per share is expected to be in a range of $0.62 to $0.64. Adjusted diluted earnings per share are expected to be in a range of $0.64 to $0.66. Adjusted earnings per share exclude acquisition integration expenses of $1.6 million ($1.1 million after tax or $0.02 per diluted share outstanding).
The financial results of the combined UK acquisitions, excluding acquisition integration expenses, are expected to be accretive to the Company's full year and third quarter diluted earnings per share.
Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 1,178 stores. The Men's Wearhouse, Moores and K&G stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories and Men's Wearhouse and Tux stores carry a limited selection.
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