Men’s Wearhouse profit up 31%, but outlook disappoints
Houston -- Men's Wearhouse said Tuesday that higher sales lifted its third-quarter profit by 31%, but its forecast for the fourth quarter missed Wall Street's expectations.
Net income rose to $25.3 million in the three months ended Oct. 30, from $19.3 million a year earlier. Revenue increased 19% to $550.1 million, from $462 million in the previous year. Tuxedo rental revenue rose 13% and accounted for more than 20% of the company's quarterly total. Other clothing sales climbed 22% in the quarter.
The quarterly results easily surpassed the average estimates of analysts surveyed by Thomson Reuters. However, the company forecast an adjusted loss of 19 cents to 22 cents a share for its fiscal fourth quarter, saying that it expects to book higher costs for both employee bonuses and medical benefits due to a higher level of submitted claims.