Men’s Wearhouse Q3 2015 earnings falter after Jos. A. Bank acquisition last year
America's largest specialty retailer of men’s suits, The Men’s Wearhouse, saw a 2.8% decrease in net sales for the third quarter, FY 2015, a decrease of $25.2 million compared to Q3 FY 2014.
Retail net sales dropped by 2.2% or $17.8 million, largely due a decline in clothing sales at Jos. A. Bank. Corporate apparel sales took the biggest hit, decreasing by 10.4%, or $7.4 million compared to the same quarter 2014. Increases in retail clothing margin from 55.6% to 57.7% helped minimize the company’s total retail gross margin to an increase of 1% compared to last year. Operating income decreased to $24.7 million, a 28.8% drop from Q3 2014. As a result of acquiring Jos. A. Bank, the company’s total debt at the end of the third quarter 2015 was $1.7 billion.
The Men’s Wearhouse operates 1,748 stores across the U.S. and Canada, including 709 Men’s Wearhouse stores and 633 Jos. A. Bank Stores. The company acquired Jos. A. Banks in March 2014. The company also operates a global corporate apparel and workwear group including Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.
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