Men’s Wearhouse posts Q4 loss; exploring alternatives for its K&G business
Houston -- The Men's Wearhouse Inc. posted a larger-than-expected loss for its fiscal fourth quarter. The retailer also announced that it was exploring the possible sale of its weaker performing K&G unit.
The company lost $3.4 million for the quarter that ended Feb. 2, compared to a loss of $3.8 million in the year-ago period.
Revenue rose 8.2% to $608.4 million. Revenue from Men's Wearhouse stores, which made up 61% of the quarter’s sales, rose 9.1%.
According to Men's Wearhouse president and CEO Doug Ewert, the company believes that its core strength lies primarily in its namesake brand and its Canadian banner (Moores). To better focus its efforts on these core operations, Ewert said, the company has hired Jefferies & Co. to assist in evaluating strategic alternatives for its 97-store K&G business.
Men’s Wearhouse said its board has approved a new share repurchase program of $200 million, which amends and increases the company's existing share repurchase authorization.