Earnings Preview: Men's Warehouse (MW)

The Men's Wearhouse, Inc. MW is currently higher on the session by 0.43%, trading at $20.98. The company is scheduled to report earnings today, after the bell. • Estimates The Street is looking for Q2 earnings per share of $0.77 on revenue of $535.01 million. These estimates have fallen by $0.01 (-1.28%) over the past 90 days. The Whisper number for MW is $0.77. • Guidance The Street is looking for Q3 EPS of $0.40 on revenue of $460.94 million. The full year 2011 estimates are $1.35 per share on revenue of $1.94 billion; FY 2012 is at $1.51 per share on revenues of $1.98 billion. • Technical Picture MW has been in a world of hurt for the past three years, falling from highs around $50.00. Though the stock solidly bottomed in late 2008 and early 2009, MW has had trouble getting through the $27.50 level on a number of occasions, selling off sharply whenever it hits that level. On a shorter-term basis, the stock has been basing around the $18.50 for the past four months and has begun to move higher. • Volatility Both historical volatility and implied volatility have been moderately down-trending over the past few months after a spike higher in mid-May. Currently HI is at 50% and IV is at 58%. The front month $21.00 straddle is trading at 70.72%; the October $21.00 straddle is trading at 52.98% The Men's Wearhouse, Inc. is a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. At January 30, 2010, the company operated 1,259 retail stores, with 1,142 stores in the United States and 117 stores in Canada. Its United States retail stores are operated under the brand names of Men's Wearhouse (581 stores), Men's Wearhouse and Tux (454 stores) and K&G (107 stores) in 47 states and the District of Columbia.