GAAP net sales for the three months to August 1, 2015 climbed 14.6 per cent year over year at US based apparel marketer, The Men’s Wearhouse. For the second quarter of fiscal 2016, GAAP net sales rose 14.6 per cent over the prior fiscal’s second quarter or $117.0 million to $920.1 million. In a press release, Men’s Wearhouse said its Retail segment net sales for the reporting period too soared 16.6 per cent or $122.5 million. However, Corporate apparel sales declined by 8.2 per cent or $5.5 million over the previous fiscal’s second quarter. Total gross profit for the second quarter of fiscal 2016 amounted to $418.7 million, up $60.1 million or 16.8 per cent year on year. “As a percentage of sales, total gross margin increased 86 basis points to 45.5 per cent of net sales,” the company informed. Advertising expenses for the quarter under review increased $6.8 million to $45.0 million and represented a 13 basis point increase in expense. Selling, general and administrative expenses decreased $2.0 million to $275.6 million, a 462 basis points decline. Operating income for the reporting period grew $55.4 million to $98.1 million and was 10.7 per cent of net sales compared to 5.3 per cent in the fiscal ago period. GAAP net interest expense for the second quarter of current fiscal was $26.5 million, while effective tax rate for the second quarter was 33.3 per cent. The company also noted that its GAAP diluted EPS for second quarter of fiscal 2016 was $0.98 and adjusted EPS was $1.07 excluding non-operating items. CEO Doug Ewert stated, “We continue to be pleased with the performance of our legacy brands as comparable sales rose 3.1 per cent at Men’s Wearhouse, 0.7 per cent at Moores and 6.7 per cent at K&G. Excluding rental revenue, Men’s Wearhouse clothing comparables climbed 6.5 per cent driven by higher average unit retails, while its comparable rental revenue dropped 3.3 per cent. Ewert too added, “The Jos. A. Bank business struggled in the second quarter with comparable sales decreasing 9.4 per cent.” “We are focused on rebuilding the Jos. A. Bank profit model and in doing so, we expect top-line volatility as we establish a promotional model with broader customer appeal and strengthen the margin profile,” he informed. Taking this into consideration, as well as the impact of the second quarter results, the company expects to be within its EPS guidance range of $2.70 to $2.90 for the full fiscal.
