Reuters
Oct 8, 2008
Men's Wearhouse cuts Q3 view as customers stay away
Reuters
Oct 8, 2008
Oct 8 (Reuters) - Men's Wearhouse slashed its third-quarter profit outlook by about 33 percent as its U.S. stores saw fewer shoppers due to challenging economic conditions, sending its shares down more than 10 percent.
www.menswearhouse.com |
U.S. apparel retailers have been seeing sluggish sales at their outlets as U.S. credit woes continue to force cash-strapped consumers to curtail spending on non-essential items.
For the third quarter, the company expects earnings of about 24 cents a share to 28 cents a share, excluding items, down from its prior outlook of 36 cents a share to 40 cents a share.
Analysts on average had expected earnings of 38 cents a share, before special items, according to Reuters Estimates.
The Houston-based owner of more than 1,200 stores under the Men's Wearhouse, Moores and K&G names said it expects sluggish retail trends to continue through the final month of the quarter.
Shares of the company were down $1.89 at $15.75 in trading after the bell. They had closed at $17.64 Wednesday on the New York Stock Exchange. (Reporting by Dhanya Skariachan in Bangalore; Editing by Pratish Narayanan)
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