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Eminence Capital boosts position in Men’s Wearhouse

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Eminence Capital and Men’s Wearhouse

Eminence Capital increased its position in Men’s Wearhouse (MW). A 13G filing in December noted that the fund owns 5,718,779 shares of the company, up from the 4,566,790 shares the fund reported in its 3Q14 portfolio. The filing notes the fund owns a passive 11.9% stake in the company.

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About Men’s Wearhouse

With 1,756 stores, Men’s Wearhouse is one of North America’s largest specialty retailers of men’s apparel. Men’s Wearhouse acquired Jos. A Bank Clothiers (JOSB) in a five-month effort that ended in June 2014. Jos. A Bank initially proposed to acquire Men’s Wearhouse in October 2013, but it was eventually acquired by Men’s Wearhouse for $1.8 billion. Eminence Capital, which held a stake in both companies, pushed them to engage in merger talks.

Retail and Corporate segments

Men’s Wearhouse operates in two reportable segments, Retail and Corporate Apparel. The Retail segment is conducted as a specialty apparel retailer, with stores throughout the US and Canada. It carries a wide selection of exclusive and nonexclusive merchandise brands. The retailer offers products and services through multiple brands and channels, including The Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank, Moores Clothing for Men, and K&G. Most of the K&G stores also carry a full selection of women’s apparel.

Its online presence includes www.menswearhouse.com, www.josbank.com, and www.josephabboud.com. MW Cleaners provides retail dry cleaning, laundry, and special services in the Houston, Texas, area.

The Corporate Apparel segment provides corporate clothing uniforms and workwear to workforces. Twin Hill in the US and Dimensions, Alexandra, and Yaffy in the UK conduct the company’s corporate operations.

Investing in Men’s Wearhouse

You can gain exposure to Men’s Wearhouse by investing in the SPDR S&P Retail ETF (XRT). MW accounts for 1.12% of XRT. XRT holds positions in other apparel retail companies such as American Eagle Outfitters (AEO), Cato Corporation (CATO), and Children’s Place (PLCE).

In the next part of this series, we’ll discuss Men’s Wearhouse’s fourth quarter 2014 results.

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