Men’s Wearhouse is considering filing bankruptcy. So what does that mean for your wedding tuxedo’s or suit purchase. Buzjounals.com reports.
“Houston-based owner of Men’s Wearhouse reportedly considers Chapter 11. Houston-based Tailored Brands Inc. (NYSE: TLRD) is considering ways to rework its debts of more than $1 billion, which could include a Chapter 11 bankruptcy filing, Bloomberg reports”
Normally this doesn’t mean anything to most people but if your having a wedding in the near future and you’ve seen Men’s wearhouse’s advertising on tv you might be thinking of order your wedding tuxedo’s there. They have the advertising dollars and they can drive more customers to their stores than the small local independant Tuxedo Specialist that are out there keeping their doors open waiting to give you better prices and service and products.
So let’s step back a little. Covid 19 has hurt every small business in America and around the world. And it’s not over yet. Retail especially has been very affected. Lululemon just announce yesterday that their business do to Covid 19 is down 17 percent because of store closures.
- “Prachi Singh
Lululemon Athletica Inc., for the first quarter ended May 3, 2020 reported net revenue of 652 million dollars, a decrease of 17 percent compared to the first quarter of fiscal 2019, while on a constant dollar basis, the company’s net revenue decreased 16 percent and direct to consumer net revenue increased 68 percent or increased 70 percent on a constant dollar basis. The company said in a statement that diluted earnings per share were 22 cents compared to 74 cents in the first quarter of fiscal 2019.
Commenting on the first quarter update, Calvin McDonald, the company’s Chief Executive Officer said: “I’m proud of how Lululemon has navigated these unexpected and unprecedented times. Our strong digital business demonstrates the strength of our guest connection and the long-term opportunity to create further omni experiences going forward.”
As a result of the Covid-19 pandemic, the company added, all its stores in North America, Europe, and certain countries in Asia Pacific were closed for a significant portion of the quarter. Subsequent to May 3, 2020, the company began reopening its retail locations in these markets in line with the guidance from local authorities. As of June 10, 2020, 295 of its company-operated stores were open.
Lululemon reported gross profit for the quarter of 334.4 million dollars, a decrease of 21 percent compared to the first quarter of fiscal 2019, while gross margin was 51.3 percent, a decrease of 260 basis points.
The company ended the first quarter with 823 million dollars in cash and cash equivalents and the capacity under its committed revolving credit facility was 398.2 million dollars. The company ended the quarter with 489 stores.”
So it’s not just Men’s Wear house it’s everywhere. Pier One is closing all their stores a long with JC Penny’s. But your not getting your Wedding Tuxedo’s for one of the biggest days of your life from these retailers. So buyer beware! Or in this case “renters beware” Caveat Emptor the latin term.