Men’s Wearhouse: “You’re Not Going to like the Way We Look”

Stephen L Kanaval |

2015 has been a disaster for The Men’s Wearhouse ($MW) trading down near 70% for the year and falling again today under heavy selling pressure. This company has done nothing good since George Zimmer sold his shares. I spoke with George at a Conference recently. He has a hanging bag full of money and an online tailoring business which was doing well. George looked tan and happy.

th when management threw in the towel on the 3 for 1 promotion because they were getting killed on the revenue line and they knew it. I’m not sure who owned this strategy internally, but they will not be with the company long as this peeled billionsof dollars in value from the company, which was having a decent year up around 40%. In a dramatic turn, shares have now reversed and accelerated to the downside and are in danger of closing the year out on a disastrous note.

I’m not sure what Doug (CEO) and Mary Beth (CMO) are thinking but they have summarily driven shareholder valuation into the toilet. I am all for executives taking risk, but they may have shot themselves in the foot so badly here that they never walk again—much less run at a pace needed in the competitive apparel sector.

The Men's Wearhouse, Inc. operates as a specialty apparel retailer in the United States, Puerto Rico, and Canada. The company operates in two segments: retail and corporate apparel. The retail segment offers suits, suit separates, sport coats, slacks, formalwear, business casual, sportswear, outerwear, dress shirts, dress pants, overcoats, ties, shoes, and accessories for men in classic, modern, and slim fits in various sizes; and a selection of tuxedo rental products. It also offers ladies' career apparel, sportswear, shoes, and accessories; children's apparel; alteration services; and retail dry cleaning, laundry, and heirlooming services. As of January 31, 2015, this segment operated 1,758 stores under the Men's Wearhouse/Men's Wearhouse and Tux, Jos. A. Bank, Moores, and K&G brands; menswearhouse.com, www.josbank.com, and josephabboud.com Internet sites; and 34 retail dry cleaning, laundry, and heirlooming facilities.

Best of luck to Men’s Warehouse, I think the phone call they may want to make is to George Zimmer and let him come in as a consultant and sort out the disorder the current team created. I just want to hear George say, “You’re gonna like the way you look” after he fixes this mess.

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