Houston Men's Wearhouse Inc. said its fourth-quarter profit slumped as it integrated a tuxedo-rental business, which typically has weak sales during the winter season. Men's Wearhouse acquired After Hours Formalwear from Federated Department Stores Inc. in April and renamed the division MW Tux. The acquisition decreased earnings by 37 cents per share in the latest quarter, the company said.
The men's apparel retailer said net income fell 71.7% to $14.8 million from $52.3 million in the same quarter a year earlier. Revenue slumped 3.9% to $535 million from $556.8 million in the year-ago period.
However, weak traffic drove overall same-store sales down 8.6% during the quarter, worse than the company's previous guidance for a decline in the low single digits. Margins shrank to 42.8% from 44.6%.
For the full year, the company's profit fell 1% to $147 million from $148.6 million. Revenue climbed 12.2% to $2.11 billion from $1.88 billion.