Tuxedo rentals lift Men's Wearhouse 2Q profits

HOUSTON

The clothing chain Men's Wearhouse Inc. reported an 8 percent increase in its fiscal second-quarter profit Thursday, topping expectations thanks to a double-digit jump in tuxedo rental revenue.

Net income for May through July was $42.5 million, or 80 cents per share, up from $39.5 million, or 75 cents per share, a year earlier.

Excluding $2.7 million in certain charges, Men's Wearhouse earned 83 cents per share.

Its revenue was $537 million, up 2 percent from $526 million a year earlier.

Analysts surveyed by Thomson Reuters had expected earnings of 77 cents per share on revenue of $536 million.

Tuxedo rental revenue rose 10 percent and accounted for more than 26 percent of the company's quarterly total.

Men's Wearhouse attributed said the gain came from more tuxedoes being rented, rather than any price increases.

It expects adjusted earnings of 40 to 47 cents for its fiscal third quarter. Analysts had been estimating earnings of 40 cents per share.

Shares in the company rose 40 cents, or 2 percent, to $21.40 in after-hours trading after closing the regular session up 11 cents to $21.