The 10-second takeaway
For the quarter ended July 28 (Q2), Men's Wearhouse met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share improved.
Gross margins grew, operating margins were steady, net margins improved.
Men's Wearhouse reported revenue of $662.3 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $662.8 million on the same basis. GAAP reported sales were 1.0% higher than the prior-year quarter's $655.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.15. The eight earnings estimates compiled by S&P Capital IQ anticipated $1.12 per share. GAAP EPS of $1.15 for Q2 were 5.5% higher than the prior-year quarter's $1.09 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.4%, 120 basis points better than the prior-year quarter. Operating margin was 13.8%, about the same as the prior-year quarter. Net margin was 9.0%, 30 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $624.0 million. On the bottom line, the average EPS estimate is $0.97.
Next year's average estimate for revenue is $2.48 billion. The average EPS estimate is $2.72.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 217 members out of 265 rating the stock outperform, and 48 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 give Men's Wearhouse a green thumbs-up, and 14 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Men's Wearhouse is outperform, with an average price target of $40.33.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.