Men’s Wearhouse profit up 31%, but outlook disappoints
Houston — Men’s Wearhouse said Tuesday that higher sales lifted its third-quarter profit by 31%, but its forecast for the fourth quarter missed Wall Street’s expectations.
Net income rose to $25.3 million in the three months ended Oct. 30, from $19.3 million a year earlier. Revenue increased 19% to $550.1 million, from $462 million in the previous year. Tuxedo rental revenue rose 13% and accounted for more than 20% of the company’s quarterly total. Other clothing sales climbed 22% in the quarter.
The quarterly results easily surpassed the average estimates of analysts surveyed by Thomson Reuters. However, the company forecast an adjusted loss of 19 cents to 22 cents a share for its fiscal fourth quarter, saying that it expects to book higher costs for both employee bonuses and medical benefits due to a higher level of submitted claims.
Report: Wal-Mart to stop overtime pay for Sunday hours
New York City — Wal-Mart Stores will stop paying an additional $1 an hour for working Sundays, taking a bite out of its single biggest expense, Bloomberg reported. The change will take effect at Walmart stores, Sam’s Club outlets and warehouses.
The move, which takes effect next year, applies only to associates hired after Jan. 1, the report said. It wouldn’t affect the retailer’s current U.S. staff, which numbers approximately 1.4 million.
The move also won’t apply to employees based in Rhode Island and Massachusetts, who weren’t eligible for the extra pay owing to state employment laws, Bloomberg reported.
Home Depot raises 2010 guidance; 10 new stores planned for 2011
New York City — Home Depot on Wednesday slightly raised its fiscal 2010 earnings guidance for the second time in two months as the market for home-improvement projects slowly begins to improve. The retailer plans to open 10 stores in 2011, and has budgeted $1.3 billion in capital expenditures. and about $2.5 billion on share repurchases.
The retailer now expects net income from continuing operations to be $1.97 per share, up from prior guidance of $1.94 per share. Analysts polled by Thomson Reuters, on average, also predict $1.94 per share.
The company now expects revenue to rise 2.3% up from the 2.2% rise expected previously, implying revenue of $67.7 billion. Analysts expect revenue of $67.59 billion.