Men’s Wearhouse Inc (MW): Will Overhaul Of Jos. A. Bank Be Enough After Mixed Results?

Although Men’s Wearhouse Inc (NYSE:MW)’s net sales have been growing steadily, one of its subsidiaries has shown some disappointing results. Sales at Jos. A. Bank fell by 9.4% in the second quarter, as opposed to a 1% increase during the same period of last year, which has prompted management to dump the old buy-one-get-three-free-suits offer in a bid to revamp the marketing strategy. “There aren’t enough men who want to buy four (suits) at a time,” said Douglas S. Ewert, Chief Executive Officer of Men’s Wearhouse. A new “1905” clothing line, that is set to hit stores by October, is meant to return the brand to its classic roots. It will bring a “younger attitude…but still very true to the DNA of classic American styling,” added Mr. Ewert in an interview, according to the Wall Street Journal.

During the second quarter of 2015, billionaire Ken Griffin significantly increased his stake in Men’s Wearhouse Inc (NYSE:MW), taking it to roughly 1.13 million shares worth $72.3 million as of June 30. Phill Gross and Robert Atchinson also upped their stake in the apparel retailer, increasing it three-fold to an aggregate of 1.62 million shares. Despite the fact that its position in the company has been reduced by 26% for the second quarter in a row, Ricky Sandler‘s Eminence Capital remains the largest shareholder of Men’s Wearhouse Inc (NYSE:MW) among the hedge funds that we track, holding 3.19 million shares valued at $204 million.

Disclosure: None