Men's Wearhouse 1Q Profit Tops Expectations

Men's Wearhouse said same-store sales in its retail apparel business will likely decline by 4 percent to 6 percent, while tuxedo rental revenue at stores open at least a year is forecast to rise 3 percent to 5 percent.

Cost-cutting measures are expected to reduce second-quarter costs by 6 percent to 8 percent, excluding advertising costs and $7.3 million in prior-year costs associated with the closing of Golden Brand.

The company said it plans to open about eight new stores this year, although it could be more if new real estate opportunities arise. Men's Wearhouse has 1,284 stores in North America.

A conference call to discuss results was delayed until Thursday because of the company's successful bid to buy Filene's Basement chain in federal bankruptcy court.

Men's Wearhouse affiliate K&G Acquisition Corp. offered $67 million and beat out two other bidders to successfully acquire the Filene's Basement brand, up to 20 store leases, inventory and leases for the company's Burlington, Mass., headquarters and a distribution center in Massachusetts.