The Men's Wearhouse announced consolidated financial results for the fiscal first quarter ended May 2, 2015. GAAP diluted EPS for fiscal first quarter 2015 was $0.21 and adjusted EPS was $0.54 excluding non-operating items.
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Total net sales increased 40.4%, or $254.6 million, to $885.1 million. Retail segment net sales increased by 43.7%, or $250.6 million. Corporate apparel sales increased by 7.0% or $4 million.
Total gross margin was $381.6 million, an increase of $98.2 million, or 34.7%. As a percent of sales, total gross margin decreased 184 basis points to 43.1% of net sales.
Advertising expense increased $21.9 million to $50.7 million. This increase represented a 116 basis point increase in expense.
Selling, general and administrative expenses (SG&A) increased $48.3 million to $275.6 million, a 492 basis points decrease.
Operating income increased $28 million to $55.3 million, representing 6.3% of net sales compared to 4.3% in the prior year.
Net sales at company's largest brand, Men's Wearhouse, were up 8.4% from last year's first quarter. Comparable sales increased 6.8% due to increases in average transactions per store, clothing product average unit retails (or the net selling price per unit) and units sold per transaction.
The higher margin tuxedo rental revenues comparable sales decreased 1.2% in the first quarter of 2015.
Jos. A. Bank comparable sales for the first quarter decreased 1.5% with a decrease in clothing product average unit retails moderated by increases in both units sold per transaction and average transactions per store.
Moores, company's Canadian retail brand, had a comparable sales increase of 0.8% due to an increase in clothing product average unit retails mostly offset by a decrease in average transactions per store and units sold per transaction. However, net sales for Moores decreased 9.5% due to an unfavorable change in the currency translation rate.
K&G comparable sales increased 7.3% due to an increase in average transactions per store. The Corporate Apparel segment had a sales increase of 7%. ■