Net sales at apparel marketer and retailer, The Men's Wearhouse zoomed 37.3 per cent from a year earlier quarter in the third fiscal quarter ended November 1, 2014.
Men's Wearhouse said its total net sales surged 37.3 per cent or $241.7 million to $890.6 million in the third quarter of 2014 from $648.9 million third quarter of 2013.
Retail segment sales for the reporting quarter too skyrocketed 42.3 per cent or $243.6 million due to $233.3 million in sales at Jos. A. Bank and an increase in comparable sales at all other retail brands.
However, corporate apparel sales declined 2.6 per cent year on year or $1.9 million in the quarter under review.
Adjusted consolidated gross profit totalled $390.0 million, up $96.5 million or 32.9 percent compared to the prior year quarter.
The total adjusted gross margin rate fell 145 basis points primarily due to lower margins at Jos. A. Bank.
Adjusted retail segment gross profit rose $94.7 million or 34.7 percent, while adjusted retail gross margin rate slipped 254 basis points including Jos. A. Bank and rose 63 basis points excluding Jos. A. Bank.
Corporate apparel gross profit mounted by $1.8 million or 8.7 per cent from same quarter of 2013 increased 324 basis points.
Advertising expenses increased $19.4 million to $42.1 million, an increase of 85.9 per cent or 124 basis points compared to the prior year third quarter primarily due to Jos. A. Bank advertising expenses.
GAAP SG&A expenses too ascended $71.1 million to $282.0 million, an increase of 33.7 per cent. But adjusted SG&A expenses were 190 basis points favourable to the prior year, the apparel retailer said.
On an absolute dollar basis, adjusted SG&A increased by $58.8 million or 28.9 per cent primarily due to the addition of Jos. A. Bank SG&A.
GAAP operating income stood at $45.2 million in third quarter of 2014 as against $60.0 million in last year’s third quarter.
Adjusted operating income amounted to $85.7 million, up $18.2 million or 26.9 per cent over the prior year adjusted operating income of $67.5 million.
For the third quarter of 2014, net interest expense stood at $25.0 million and the effective tax rate was 65.3 per cent.
“Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 33.6 per cent,” the retailer explained.
Men’s Wearhouse reported GAAP net earnings at $6.8 million compared $38.2 million last year, while GAAP diluted earnings per share was $0.14 as against $0.79 in the prior year quarter.
Adjusted net earnings for the third quarter of 2014 were $40.1 million, or $0.83 adjusted diluted earnings per share compared to $43.1 million, or $0.90 adjusted diluted earnings per share last year. (AR)
