Boston, MA 09/12/2013 (wallstreetpr) –The Men’s Wearhouse, Inc.(NYSE:MW) could not continue its good run which had began on 29th August’13 as the stock fell by more than 10.39% in current trading session after the company lowered its guidance for full year and declared weaker numbers in second quarter results which were announced today.
Companies Spark store reported revenue of $647.3m compared to analyst estimate of $670.8m. Adjusted earnings for the quarter were also tad lower by $0.13 cents compared to what analysts had estimated.
The Men’s Wearhouse, Inc. (NYSE:MW) said in a statement that for the full year it expects earnings to be in the region of $2.40 and $2.50 per share compared to its previous outlook of $2.70 to $2.80 per share.
Earlier in June, George Zimmer was fired by the company who also stands to be a minority shareholder. In a statement the company said that the company has cut all its ties with Zimmer as he had difficulty “accepting the fact that Men’s Wearhouse is a public company with an independent board of directors and that he has not been the chief executive officer for two years.”
It is also learnt that there were major differences between board of The Men’s Wearhouse, Inc. (NYSE:MW) and management as Zimmer was more keen on selling the business to an investment group where as the board of the company had different views altogether as the board thought that the deal with investment group would have loaded its balance sheet with more debt.
Reports were ripe in the month of August when a article was published in one of the magazines which had said that Zimmer was trying to buyout the company with the help of other private investors although the same was denied by the company stating that it was no way interested in selling the business.