Shares of Men’s suits retailer, The Men’s Wearhouse, Inc. (MW) rose on Thursday morning after the company reported a narrowed loss for its fourth quarter and plans to seek an alternative strategy for K&G Brands.
The Houston. TX based company reported a fourth quarter net loss of -$3.4 million, or 7 cents per share, compared to last years net loss of -$3.8 million, or 7 cents per share. Analysts expected to see a loss of 5 cents per share.
Revenue for the quarter rose by 8% to $608.4 million from $562.2 million last year. Analysts expected to see $610 million in revenue.
The company’s retail segment sales rose 6.8% in the fourth quarter, while corporate apparel sales increased by 21.5%.
Looking ahead, the company is estimating FY2013 earnings in the range of $2.70 to $2.80 per share. Sales growth for MW is expected to be between 2.85% and 3.85%. Analysts are estimating earnings of $2.77 per share.
Shares of MW rose over 14% Thursday morning after the company reported that it planned to seek strategic alternatives for its K&G business. Revenue for K&G brands has been rising due to increased popularity. However, expenses have been rising.
Additionally, the company said that its board has approved a $200 million share buy back program. There was $45 million remaining on the company’s previous buy back authorization.
Men’s Wearhouse shares were up $4.11, or 14.14% during premarket trading Thursday. The stock has declined -10% in the past year.
The Bottom Line
Shares of The Men’s Wearhouse, Inc. (MW) have a 2.48% yield, based on Wednesday’s closing price of $29.07.
The Men’s Wearhouse, Inc. (MW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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