Revenue: Up 2% to $473.5 million vs. estimates of $458 million.
Chief Operating Officer Doug Ewert told investors the performance of the company’s retail apparel business represented a “significant improvement” YOY.
Chief Executive George Zimmer added that rumors of a women’s wear store, nicknamed “Women’s Warehouse” by the Street, are false, calling such rumors “inaccurate.”
Comment: Women’s Warehouse or not, this was a very impressive Q out of MW (NYSE: MW). Total foot trafic was up 5.3% YOY, same store sales grew 2.4% compared to a 7% YOY loss last year, and gross margin widened to 42.5% from 40.5%.
Put this all together, and you’ve got yourself a discount retailer of formalwear that’s got some serious legs after-hours. Currently, shares are changing hands at $19.90, good for a gain of 5.5%. This could be a good name to consider if you’re in it for the long term, but as far as a trade is concerned, the market’s downward bias is likely to stunt any growth in the near-term.
Disclosure: No holdings in MW.