Men's Wearhouse Q3 beats Street, shares rise
The apparel retailer, which rents out one in every three tuxedos in the United States and Canada, also raised its full-year adjusted earnings forecast.
Shares of the company rose 7 percent in extended trading.
* Men's Wearhouse, which competes with JoS A Bank Clothiers Inc (JOSB.O) and Perry Ellis International Inc (PERY.O), saw third-quarter gross margins increase 315 basis points to 14.1 percent.
* For the current quarter, the company expects an adjusted loss per share of 15-12 cents, compared with analysts expectations of loss of 11 cents a share.
* The company expects adjusted earnings of $2.28-$2.31 per share from its earlier adj EPS forecast of $2.13-$2.20 per share. Analysts, on average had expected it to earn $2.19 a share, according to Thomson Reuters I/B/E/S.
MARKET REACTION / COMMENTARY:
* Shares of the Houston, Texas-based company were up at $29.20 on Tuesday in after-hours trading. They had closed at $27.19 on the New York Stock Exchange.
BACKGROUND / LINKS:
* Founded in 1973, Men's Wearhouse sells men's designer, branded and private-label tuxedos, sportswear and accessories through more than 1,170 stores in North America.
* Last week, rival JoS A Bank warned of a slow start to its holiday quarter as same-store sales slipped in November.
(Reporting by Arpita Mukherjee in Bangalore; Editing by Saumyadeb Chakrabarty)
© Thomson Reuters 2016 All rights reserved.