Sep 10, 2009
Men's Wearhouse second quarter tops Street; sees tepid third quarter profit
Sep 10, 2009
Sept 9 (Reuters) - Men's Wearhouse (MW.N) reported a quarterly profit that beat market estimates, helped by lower expenses, but forecast weak third-quarter earnings, sending the apparel retailer's shares down as much as 6 percent in after-market trade.
On a conference call with analysts, Chief Financial Officer Neill Davis said the rate of benefit from cost controls and operating efficiencies will diminish in the third quarter.
Men's Wearhouse sees earnings of 27 cents to 30 cents a share in the third quarter. It expects total sales to be in the range of flat to a decrease of 2 percent.
Analysts on average were expecting the company to earn 32 cents a share on revenue of $454.6 million, according to Reuters Estimates.
The company expects full-year capital expenditure towards the high end of its prior view.
For the second quarter ended Aug. 1, the company earned $39.5 million, or 75 cents per share, compared with $32.8 million, or 63 cents a share, a year ago.
Total net sales fell about 4 percent to $526.2 million.
Analysts were looking for a profit of 60 cents a share, on revenue of $524.5 million.
Selling, general and administrative expenses fell 13 percent to $173.9 million.
The clothing retailer has kept a tight lid on expenses by sourcing goods at attractive prices, reducing payroll and closing its manufacturing facility in Canada last year.
Shares of the Houston-based company, which touched a year high earlier in the day, slipped 6 percent to $26 in trading after the bell. They closed at $27.51 Wednesday 9 September on the New York Stock Exchange.
(Reporting by Viraj Nair in Bangalore; Editing by Deepak Kannan and Pradeep Kurup)
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