Men's apparel retailer Men's Wearhouse Inc. on Wednesday lowered its second-quarter earnings guidance due to higher-than-expected severance costs and a bigger drop in tuxedo-rental unit volume at its MW Tux stores.
The company expects earnings between 61 cents and 65 cents per share, or 70 cents to 74 cents per share excluding items. Previously the company forecast income of 69 cents to 73 cents per share, or 75 cents to 79 cents per share excluding items.
Analysts polled by Thomson Financial, on average, predict a profit of 75 cents per share. Analyst estimates typically exclude one-time items.
Men's Wearhouse said it expects severance costs related to the closure of a Canada-based manufacturing plant operated by a subsidiary will be 9 cents per share rather than 6 cents per share as previously expected.
Furthermore, tuxedo-rental unit volume from the company's MW Tux stores is expected to fall more than previously anticipated, the company said.
Shares of Men's Wearhouse fell 84 cents, or 4.8 percent, to close at $16.72.
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