The Men's Wearhouse expects to complete its merger with Jos. A. Bank in the next few weeks, and looks forward to reaping the benefits of that combination as it closes its fiscal first quarter ended May 3.
Total net sales for quarter increased 2.3% to $630.5 million from $616.5 million in the prior-year quarter. Retail segment sales for the quarter increased by 2.4% and corporate apparel sales increased by 0.8% as compared to the prior year quarter.
"We were pleased to report adjusted EPS of $0.69 despite the Easter-driven tuxedo timing shift that moved revenue to the second quarter,” said president and CEO Doug Ewert. “Our Men's Wearhouse stores performed above plan with sales growing 4.8% over last year's first quarter and comparable sales up 2.9%. Moores' revenue was negatively affected by currency exchange rates during the quarter but performed very well, with comparable store sales rising 6.0%. While GAAP operating income decreased, we grew adjusted operating income for all retail brands and were able to leverage SG&A despite an increase in advertising.”
Net sales at core flagship brand Men's Wearhouse stores, which represented 67% of total first quarter sales were up 4.8% from last year's first quarter sales and comparable sales increased 2.9%. On a comparable basis an increase in average transactions per store more than offset a decrease in clothing product average unit retails (or the net selling price per unit). The higher margin tuxedo rental revenues comparable store sales increased 4% in the quarter.
Moores, the Canadian retail brand, was 8% of the total first quarter sales and had a comparable sales increase of 6% due mainly to increases in average transactions per store and units sold per transaction. These were slightly offset by a decrease in clothing product average unit retails.
Net sales change for Moores decreased 2.4% due to an unfavorable change in the currency translation rate. K&G was 15% of the company's total first quarter sales with a comparable sales decrease of 1.2% with lower average unit retails and average transactions per store that more than offset increased units sold per transaction. The Corporate Apparel segment, which represented 9% of total first quarter sales, had a sales increase of 0.8%.