Be sure to check out our detailed stock analysis (click here). It appears Men's Wearhouse, Inc. (NYSE: MW) has caught the attention of investors, with the stock moving up over 15% in a single day last week. Have no fear, there is still room for Men's Wearhouse to move higher; the stock is still 20% below its 52-week high.
The run up was due to recent news that shows that Men's Wearhouse has engaged Jefferies to evaluate strategic alternatives for its K&G operations. A sale of the division would be a big positive for the company, which would lead to higher profitability and a higher valuation.
Its January-ended quarterly results came in at a $0.07 loss per share, below consensus estimate of only a $0.03 per share loss. This was due in part to K&G. Comps at Men's Wearhouse were up 1% year over year, but comps at K&G fell 5.7%. K&G accounts for over 15% of sales and continues to be a big drag on the company.