Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of specialty retailer Men's Wearhouse (NYS: MW) surged 15% today after its quarterly results and guidance topped Wall Street expectations.
So what: The stock dropped over the first half of 2012 on slumping sales, but a second-quarter beat -- EPS of $1.15 versus the consensus of $1.12 -- coupled with upbeat guidance for the full year, suggests that the trend is indeed turning. In fact, the company's same-store sales increased 4.4% at its namesake stores, giving investors plenty of optimism for organic growth going forward.
Now what: Management now sees full-year 2012 EPS of $2.74 to $2.80, up from its previous view of $2.70 to $2.78. "Customers continue to respond positively to our long-standing service model and our trend-right men's apparel during both promotional and non-promotional periods," said president and CEO Doug Ewert. More important, with the stock trading at a cheapish forward P/E of 12 even after today's run-up, there might still be time to buy into that bullishness.
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The article Why Men's Wearhouse Shares Soared originally appeared on Fool.com.
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