Investors hoping to see some improvement in Men's Wearhouse
I've noticed apparel retailers such as Kohl's
With comp sales down 8%, the rest of the profit-and-loss statement is predictable. Gross margin slid 27 basis points. Selling, general, and administrative expenses dramatically increased as a percentage of sales, and the adjusted earnings per share of $0.72 was well below last year's $1.00 but did manage to beat consensus analyst estimates by a penny. The one piece of encouraging news was the tuxedo rental business that Men's Wearhouse acquired from Macy's
Management lowered its guidance for 2008 again, this time to a range of $1.50-$1.60 excluding one-time items. At the beginning of the year, the number was $1.90-$2.10, but management has had a few "opportunities" with earnings guidance in recent quarters.
Today, the company sports a trailing-12-month price-to-earnings ratio of 9. That might seem reasonable, but at the current price of $21 a stub, that's really closer to 13.5 times expected earnings this year -- not much of a bargain, when Foolish investors who believe in the sector can own Jos. A. Bank
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