Despite a continued drag from its recently acquired Jos. A. Bank stores, Men’s Wearhouse announced a growth in first-quarter sales as well as a deal with Macy’s to operate tuxedo rental shops in 300 department stores.
Net sales at the company’s largest brand, Men’s Wearhouse, were up 8.4 percent from last year’s first quarter, while comparable sales increased 6.8 percent. In comparison, Jos. A. Bank comparable sales for the first quarter decreased 1.5 percent.
Men’s Wearhouse, in a statement, said its conversion of Jos. A. Bank’s inventory was continuing, but that it expected the sales decline to continue into the second quarter.
Men’s Wearhouse acquired the Baltimore-based clothier for $1.8 billion last year in a protracted and bitter struggle.
Total net sales increased 40.4 percent or $254.6 million, to $885.1 million. Overall, Men’s Wearhouse reported a profit of $10.4 million, or 21 cents a share, down from $16.5 million, or 34 cents a share, a year earlier.
A survey of analysts by Thomson Reuters had forecast a profit of 52 cents a share on $857.7 million in net sales.
The 10-year Macy’s deal, for which no details were disclosed, is the latest step by Men’s Wearhouse to overhaul its image and broaden its appeal.
The new Macy’s Tuxedo Shop is expected to be located in or near the men’s department and will have dedicated space staffed by formal wear professionals, the company said in a statement. Men’s Wearhouse will begin operating 17 pilot tuxedo shops in fall 2015, with the expectation that 300 shops will be open by fall 2016.
Macy’s and Men’s Wearhouse will also collaborate to develop a digital tuxedo rental shop on macys.com.
Men’s Wearhouse also announced it has entered into a new partnership with Kenneth Cole to carry a special collection of men’s tailored clothing, under the “AWEARNESS Kenneth Cole” label.