Dallas First-quarter profit at clothing retailer Men's Wearhouse Inc. fell 47%, but cost-cutting measures helped results top Wall Street expectations and the company forecast a strong second-quarter performance.
The retailer said profit totaled $5.3 million, down from year-ago profit of $9.9 million.
Total sales fell about 6% to $464.1 million from $491.1 a year ago. Clothing product sales fell 7.6%, the company said, though tuxedo-rental sales increased 1.7%.
Despite declining year-over-year, the results topped the average expectations of analysts surveyed by Thomson Reuters.
Men's Warehouse said same-store sales in its retail apparel business will likely decline by 4% to 6%, while tuxedo rental revenue at stores open at least a year is forecast to rise 3% to 5%.
Cost-cutting measures are expected to reduce second-quarter costs by 6% to 8%, excluding advertising costs and $7.3 million in prior-year costs associated with the closing of Golden Brand.
The company said it plans to open about eight new stores this year, although it could be more if new real estate opportunities arise. Men's Wearhouse has 1,284 stores in North America.
A conference call to discuss results was delayed until Thursday because of the company's successful bid to buy Filene's Basement chain in federal bankruptcy court.
Men's Wearhouse affiliate K&G Acquisition Corp. offered $67 million and beat out two other bidders to successfully acquire the Filene's Basement brand, up to 20 store leases, inventory and leases for the company's Burlington, Mass., headquarters and a distribution center in Massachusetts.