Dec 9, 2009
Men's Wearhouse forecasts fourth quarter loss, shares fall
Dec 9, 2009
LOS ANGELES, Dec 8 (Reuters) - Men's Wearhouse (MW.N) forecast on Tuesday 8 December a fourth-quarter loss, sending its shares down nearly 14 percent after the closing bell.
Men's Wearhouse forecast a fourth-quarter loss of between 15 cents and 19 cents a share.
Analysts were expecting Men's Wearhouse to post a profit of a penny a share in the fourth quarter, according to Thomson Reuters I/B/E/S.
On a conference call with analysts, the company said it was not planning to announce a special dividend, but is eyeing opportunities in 2010 and beyond.
The owner of nearly 1,300 stores under the Men's Wearhouse, Moores and K&G brands posted a better-than-expected quarterly profit on Tuesday 8 December, helped by higher tuxedo rental sales and lower costs.
The company saw a 35-percent jump in third-quarter net income to $19.7 million, or 37 cents a share, up from $14.6 million, or 28 cents a share, a year earlier.
It had forecast a third-quarter profit of between 27 cents and 30 cents a share in September.
Revenue at the company rose marginally to $462 million.
Analysts were looking for earnings of 33 cents a share, on revenue of $454.54 million.
Shares of the company dropped to $18.26 each in trading after the bell, down nearly 14 percent after they closed at $21.84 on the New York Stock Exchange. (Reporting by Shradhha Sharma in Bangalore and Laura Isensee in Los Angeles; Editing by Unnikrishnan Nair, Leslie Gevirtz)
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