PSS Collective Brands, Inc.

The Men's Wearhouse Inc (MW), one of the largest specialty retailers of menswear in the United States and Canada, is slated to report its second-quarter 2012 financial results on September 5, 2012. The current Zacks Consensus Estimate for the quarter stands at $1.12 per share, indicating an estimated year-over-year increase of about 1%. Revenue, as per the Zacks Consensus Estimate, is $663 million.

First-Quarter Synopsis

Men's Wearhouse’s quarterly earnings of 52 cents a share missed the Zacks Consensus Estimate of 55 cents, and inched down 1.9% from 53 cents earned in the prior-year quarter.

Total net sales for the quarter came in at $586.6 million compared with $580.4 million in the year-ago quarter. Moreover, total sales missed the Zacks Consensus Estimate of $597 million.

Earnings Estimate Revisions - Overview

Estimates haven’t moved for the upcoming quarter, reflecting that the analysts covering the stock kept their estimates intact in the absence of any major news having a direct or an indirect impact on the estimates.

Agreement of Estimate Revisions

We do not see any major estimate revisions at this point. Over the last 30 days, none of the estimates (out of 7) were revised in the upward or downward direction for the second quarter as well as for fiscal 2012.

Magnitude of Estimate Revisions

The Zacks Consensus Estimate for the quarter remained stable over the last 30 days, reflecting no estimate revisions. 

Mixed Surprise History

With respect to earnings surprises, Men's Wearhouse has topped as well as missed the Zacks Consensus Estimate over the last four quarters in the range of negative 5.5% to positive 58.3%. The average remained at positive 20.3%, indicating that the company surpassed the Zacks Consensus Estimate by the same magnitude in the trailing four quarters.

Our Recommendation

Men's Wearhouse, which competes with the likes of Collective Brands Inc. (PSS), currently retains a Zacks #3 Rank that translates into a short-term ‘Hold’ rating.

 
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COLLECTIVE BRND (PSS): Free Stock Analysis Report
 
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