Men’s Wearhouse: Organic Growth Boosts Its Margin



About Men’s Wearhouse

Men’s Wearhouse (MW) has a market cap of $2.73 billion. It’s one of the largest retailers of men’s apparel with 1,758 stores. Men’s Wearhouse, Jos. A. Bank, Moores, and K&G stores carry a full range of suits, sports coats, furnishings, and accessories in exclusive and non-exclusive merchandise brands. In contrast, Men’s Wearhouse and Tux stores carry a limited selection range.

The price movement for Men’s Wearhouse on a weekly, monthly, and YTD (year-to-date) basis is 0.04%, -0.84%, and 28.72%, respectively.

The SPDR S&P Retail ETF (XRT) invests 1.10% of its holdings in Men’s Wearhouse.

Burlington Stores (BURL), Macy’s (M), and Express (EXPR) are the competitors for Men’s Wearhouse.

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How did Men’s Wearhouse perform?

In 1Q15, the company recorded revenue of $885.1 million with net income of $10.369 million. After success in 1Q15, on June 10, 2015, the company signed a ten-year agreement with Macy’s to operate men’s tuxedo rental shops inside 300 Macy’s stores. It entered into a partnership with Kenneth Cole to carry a special collection of men’s tailored clothing. On July 2, 2015, a quarterly cash dividend of $0.18 per share was announced to its shareholders.

Men’s Wearhouse in 2Q15

According to the earnings report for 2Q15, the company reported net revenue of $920.1 million—a rise of 3.90% on a quarterly basis. The revenue for the total retail segment and corporate apparel segment rose by 4.10% and 0.60%, respectively. The gross profit margin rose by 9.70% in 2Q15.

With the rise in income, cash and cash equivalents grew by 18.77%. Accounts payable and long-term debt fell by 24% and 1.79%, respectively, on a quarter-over-quarter basis.


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