Earnings Preview: The Men's Wearhouse, Inc.

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Company Profile

The Men's Wearhouse, Inc., together with its subsidiaries, operates as a specialty apparel retailer in the United States and Canada. It provides suits, suit separates, sport coats, slacks, sportswear, outerwear, dress shirts, shoes, and accessories for men, as well as offers tuxedo rentals

The Men's Wearhouse (MW) is scheduled to report its first quarter earnings results on June 06, 2012, after market close.

Technical Overview

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The Men's Wearhouse has a market cap of $1.76 billion and it is currently trading around $34.56 with a 52 week range of $24.50 to $40.97. The stock has 6.63% price performance for the year 2012. The following table provides the key financial ratios for The Men's Wearhouse:

Key Ratio Value
Current Ratio 2.93
PEG 1.89
P/E 15.66
Forward P/E 11.36
Profit Margin 5.06%
Return On Assets (ROA) 8.84%
Return On Equity (ROE) 11.97%

Recent News

  • On May 15, 2012, Cowen said Men's Wearhouse is scheduled to report Q1 results in first week of June and projects higher gross margins could produce upside to their already above Street estimates. The firm also believes spending on men's apparel is in the early stages of a multi-year cycle. Shares are Outperform rated.
  • On April 26, 2012, Zacks said Men's Wearhouse has been defying the gloom and doom retail predictions since the Great Recession. The men's retailer is expected to post its third year of double digit earnings growth in fiscal 2012. This Zacks #1 Rank (Strong Buy) is also a value stock with a forward P/E of 12.8.
  • On March 29, 2012, Men's Wearhouse announced that its Board of Directors declared a quarterly cash dividend of $0.18 per share on the Company's common stock, payable on June 22, 2012 to shareholders of record at the close of business on June 12, 2012.

Analyst Guidance and Earnings History

The first quarter revenues are expected to be $593.90 million when compared to $580.38 million for the same quarter last year. Earnings per share for the first quarter are expected to be 55 cents a share, up from 53 cents a share in the year-ago period.

The average price target from analyst for The Men's Wearhouse is $44.67 with average rating is OVERWEIGHT

Out of the last 4 quarters, The Men's Wearhouse has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MW over the next 72 hours.