Men’s Wearhouse reported declining net income during the third quarter of fiscal 2013 even as net sales improved.
Net income dropped about 22%, from $48.8 million in the third quarter of the prior fiscal year to $38.2 million.
Sales grew almost 3% to $648.9 million from $631 million. Same-store sales increased 2.6%. Men’s Wearhouse said financial performance was in line with company expectations and was hampered by a decrease in tuxedo margin due to lower rental revenue and higher per unit rental costs and royalty payments and the deleveraging of occupancy costs.
"We are very pleased to report our 2.6% same-store sales increase during the third quarter in our Men's Wearhouse brand, which represents two-thirds of our consolidated sales,” said president and CEO Doug Ewert. “We are also very pleased with the early progress in integrating our newly acquired American designer brand, Joseph Abboud, and its U.S. manufacturing operations. We already have several large markets with Joseph Abboud product in place and will continue to execute on our planned rollout to all stores into the summer of 2014."