Sluggish sales at Men’s Wearhouse are because of women, at least that is what the CEO alleges. According to the Men’s Wearhouse CEO, the clothing chain’s numbers were dragged down by superstitious brides. However, last quarter’s earnings indicate otherwise, according to analysts.
Men’s Wearhouse saw the company’s net income fall as much as 28 percent during the second quarter. Despite an early Easter that resulted in prom tuxedo rentals being pushed up earlier in the year than usual, and the company’s sudden dismissal of its founder, George Zimmer, back in June, leaders allege there are other reasons for the dropping figures.
The company’s chief executive, Doug Ewert, has other ideas for the company’s struggles. In a conference call with analysts last week, Ewert indicated that the number 13, as at the end of 2013, is resulting in some brides from getting married this year.
Zimmer was abruptly terminated in June because he disagreed with the board’s management strategies. Since Zimmer’s dismissal, profits have been down for the company. In addition to the figures for the quarter, sales are down 2.3 percent. Shares have dropped 10 percent, which many believe is an indication that the investors had more confidence in the company when Zimmer was in charge.
When Zimmer left the company, customers protested. Experts considered the first ad post-Zimmer was considered a disaster. The main disagreement between Zimmer and the board was Zimmer’s desire to take the company private. Now stock values are dropping and sales are declining, it seems as though the men’s clothing retailer needs to take some action to get back on top.
Zimmer founded the men’s clothing retailer in 1973. Headquartered in Houston, Tex., the company has executive offices in Freemont, Calif. Shares are currently priced at $34.60 each.
For those questioning Ewert’s theory that superstition has cut down on the number of weddings, he may actually have some support in his ideas. Because of sluggish sales, several wedding retailers have offered sizeable discounts this year.
According to a June article published in USA Today, the marriage rate has dropped to new lows this year, reaching the lowest since the economic downturn. Two-thirds of the couples who get married live together before marriage, and unemployment and underemployment resulted in those couples delaying their wedding date. Studies show more people ages 18 to 34 will be heading down the aisle during the next two years, so that could be good news for businesses who profit from marriages.
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