Men's Wearhouse up on solid 2Q expectations
NEW YORK (AP) — Shares of Men's Wearhouse gained more than 3 percent, riding on the coattails of JoS. A. Bank Clothiers, which posted surprisingly strong earnings for the second quarter Wednesday.
THE SPARK: JoS. A. Bank's revenue jumped 14 percent and net income topped Wall Street predictions, sending investors grabbing for shares of Men's Wearhouse before it reports earnings next week on the hope that it would do the same.
THE ANALYSIS: Margaret Whitfield of Sterne, Agee & Leach said in a client note that she expects Men's Wearhouse to report second-quarter earnings of $1.13 per share on Sept. 5, a penny better than the consensus estimate. Whitfield anticipates revenue at Men's Wearhouse stores open at least a year will be up 4 percent. The metric is a key indicator of a retailer's performance as it excludes results from stores recently opened or closed. Its stock rose more than 17 percent in afternoon trading.
SHARE ACTION: Men's Wearhouse Inc.'s stock added $1.07, or 3.5 percent, to $31.81. Over the past year, the shares have traded in a range of $24.50 to $40.97. For the year to date, the stock is down 7 percent.