Men's Warehouse Reports Q4 Earnings

The Men's Warehouse MW reported its fourth-quarter earnings and full year fiscal 2013 results. Investors are jumping with joy after The Men's Warehouse has finally been able to get Jos. A. Bank JOSB to agree on a deal. Shares of the company are down 2 percent in after-hours trading after they were originally up 5 percent in day-trading. The Men's Warehouse reported fiscal 2013 GAAP diluted earnings per share of $1.70 and adjusted diluted earnings per share of $2.21. Net sales for fiscal 2013 decreased 7.9 percent to $560.6 million from $608.4 million. The Men's Warehouse is the latest company to blame Mother Nature for its shortfall in earnings. Men's Warehouse's fourth-quarter comps were down 2.5 percent with about one-quarter of the decrease due to weather-related store closures. Doug Ewert, Men's Wearhouse president and chief executive officer, commented, "We were not immune to the effects of weak consumer spending sentiments and severe weather disruption that impacted most retailers in December and January. Tuxedo and corporate apparel sales were in-line with internal expectations, while clothing sales in all three retail chains were lower than expected. Weather-related store closures and an aggressive promotional retail environment resulted in a traffic decline. We estimate that approximately one-quarter of the 2.5% comparable sales decrease in the fourth quarter at Men's Wearhouse was due to these closures." In other news, Jos. A. Bank Clothiers has finally agreed to The Men's Warehouse's terms. The Men's Wearhouse will buy Jos. A. Bank Clothiers for $1.8 billion, or $65 per share. We are excited by the opportunities this transaction presents," said Men's Wearhouse CEO Doug Ewert, "and are confident that our combined best-in-class offerings for our valued customers will drive significant shareholder value." Ewert also added, “"We look forward to completing the combination of Men's Wearhouse and Jos. A. Bank, which we also announced today, and to achieving the benefits of the combination for our shareholders."