Sales Soar at Men's Wearhouse
More men rented low-cost tuxedos from Men's Wearhouse (NYS: MW) during the second quarter, helping to kick sales up 22 percent.
Revenue totaled $655.5 million, up from nearly $537 million a year earlier. Net earnings rose 33 percent, to $57.08 million, or $1.09 per share, up from $42.96 million, or $0.81 per share, in the same quarter a year earlier.
Sales were bolstered by performance from U.K. corporate clothing giants Dimensions and Alexandra, which Men's Wearhouse bought in August 2010. They contributed $63.2 million of the consolidated sales increase, or 11.8% of the consolidated growth rate, according to the company. The company said it anticipates full-year adjusted earnings of $2.13 to $2.20 a share.
Founded in 1973, the men's retailer performs alterations, rents out tuxes, and sells clothes, with 1,178 stores under the Men's Wearhouse, Moores, and K&G names.
Prime competitor Jos A. Bank (NAS: JOSB) also saw sales soar 23%, to $230.7 million, during its second quarter, which ended July 30.
Both companies have fared well during the recession, thanks to their offerings of lower-cost wardrobe options for the business world, job interviews, and special events.
If none of this gives you the itch to buy, it may still be worthwhile to keep an eye on Men's Wearhouse or Jos A. Bank. You can add these stocks to your Foolish watchlist by clicking the "+" icons above. Don't have a watchlist yet? Set one up today for free.
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