Men’s Wearhouse posts better than expected results
The The Men's Wearhouse, Inc.(NYSE:MW) Inc has announced its second quarter results. It has reported better sales figures and improved margins. The tax rate is also lower than expected. The Houston based company said that it had earned a net income of $59.4 million or $1.15 per share for the quarter ending July 28. In the corresponding quarter last year, it had made $57.1 million or $1.09 per share.
Total revenue of this very large North American specialty retailer has moved up by 1 percent to $662.3 million. According to the company, its higher than planned gross margin in the retail segment and a lower tax rate were the reasons for the better than expected results.
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For fiscal year 2012, the company expects its earnings per share to be in the band of $2.74 to $2.8. This is lower than analysts’ estimates of $3.05 per share.
Shares of the company soared 15.20% to $36.68 on Thursday.
Supervalu to close down 60 stores
Grocery store operator SUPERVALU INC.(NYSE:SVU )’s struggles continue. It is said that it plans to close 60 underperforming stores. The Eden Prairie, Minnesota based company has said that the stores to be closed include Albertsons, ACME and Save- a-Lot stores spread over several states. It has yet to inform employees of its plans to close these stores by December 1.
CEO Wayne Sales, who took the reins in July, said that the plans reflect the company’s resolve to move with "with a greater sense of urgency to reduce costs and improve shareholder value."
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Intense competition from big retailers like Wal-Mart on the one hand and dollar stores on the other has left stores like Supervalu floundering. The company currently has 4400 stores in the U.S.
On Thursday, Supervalu shares rose 5 cents closing at $2.33.