After the closing bell on Wednesday, Men’s Wearhouse (MW) released its fourth quarter financial results. Here’s what the results mean for mutual fund investors.
Inside MW's Results
The company reported a net loss of $35.9 million, or 75 cents per share. Last year, the company reported a net loss of $30.4 million, or 64 cents per share. Excluding special items, the company’s net loss equaled $1.3 million, or 3 cents per share. Analysts expected to see a net loss of 7 cents per share.
Sales surged 65.5% to $928.36 million from $560.55 million. Analysts expected to see revenue of $919.09 million.
Looking ahead to FY2015, the company expects to see adjusted EPS between $2.70 and $2.90. Analysts expect to see EPS of $2.52.
The company also boosted its guidance for 2017 to include K&G operations. EPS is now expected to be between $5.75 and $6.25.
Weak Jos A. Bank Sales
In June, Men’s Wearhouse acquired Jos A. Bank for $1.8 billion. In the third quarter, same store sales at Jos A. Bank dropped 8.1%. For the most recent quarter, Jos A. Bank same store sales had another declining quarter – falling 6.6%.
However, MW reported that it expects sales at Jos A. Bank to improve in the second half of 2015.
Mutual Funds to Watch
There are several mutual funds invested in Men’s Wearhouse. Below are three funds that hold the largest stakes in MW.
|SHRAX||Franklin Small Cap Value||1.66%|
|NAESX||Vanguard Small Capitalization Index||1.61%|
|VTSMX||Vanguard Total Stock Market Index||1.56%|
The Bottom Line
The funds above are a great way for investors to gain exposure to a diverse bundle of securities and industries. Investors interested in Mens Wearhouse may also be interested in Jos. A Bank (JOSB) and Express (EXPR).
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