Tomahawk, WI 9/13/2013 (BasicsMedia) – The Men’s Wearhouse, Inc. (NYSE:MW) specializes retailing of men’s suits in addition to providing tuxedo rental services to its clients in the U.S and Canada. It has around 1,166 stores spread between the U.S (1,049) and Canada (117). This company’s operations are carried out in two segments, that is, corporate apparel and retail apparel. The company’s sales in 2013 aren’t what were generally expected for a firm of its size and repute. Various reasons have been given for this trend and some of them are both strange and quite literally, hilarious.


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MW Blames Poor Sales on Superstition

One of the reasons the company has cited for the poor sales it is reporting for 2013 has to do with superstition. It is a well documented fact how people have always been quite superstitious with regard to the number 13. This has made many people not to wed as might have been expected thus denying MW the revenue it obtains from offering tuxedo products and services. In 2012, the financial results for the quarter ending July 28 reported a net income of $59.4 million. The net income in the same quarter in 2013 has been reported at around $42.9 million.

MW Blames Poor Sales on Easter

Secondly, MW blames the earlier Easter holidays for messing up the second quarter results. Normally, the second quarter sales receive a major boost during Easter when the demand for tuxedo products and services increase tremendously. This is generally as a result of increase in demand for prom tuxedo rentals over the same period.  Second quarter earnings in 2013 were hurt by the earlier Easter holidays to the tune of 10 cents per share. The earnings were also affected by costs related to payroll and other charges to the tune of 16 cents per share.

MW Revenue Drops

Most analysts had expected revenue for MW to be around $670.8 million. This would be an increase from the $662.3 million reported in the previous results for the same period last year. However, what MW eventually published or announced indicated that the revenue had fallen to $647.3 million, thus signifying a drop of around 2.3 percent. The company had previously forecast that its full-year earnings would be around $2.70 to $2.80 per share. It has now modified its forecast or projections to around $2.40 to $2.50 per share.

There has been a significant development in the apparel industry which is not only affecting MW but other players as well. This development is not good and it is the fact that fewer and fewer customers appear willing to continue spending on apparels in the U.S. Many consumers are now cutting down on their spending probably because they want to use the money on other products and services which they consider to be vital for their well being. Same store sales have dropped by around 2.1%. This is a vital indication of financial performance of this company.

It’s also plausible that the decision to fire the founder and face of MW, George Zimmer, could have also alienated most of the company’s clients. He was fired in June 2013, and the decision wasn’t received quite well with some clients who had been loyal to MW for many years.

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