St. Denis J. Villere III, Partner at St. Denis J. Villere & Company, LLC, sees a good entry point into Men’s Wearhouse Inc (MW) as the company battles short-term headwinds.
“They are very dominant in the casual-clothing sector, and it came under pressure because they bought Jos. A. Bank, the retailer, and had a battle with the founder George Zimmer. The stock came under pressure when they made this acquisition and there was noise surrounding George kind of being pushed out,” Villere said.
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Villere says that when looking at the two companies combined, they have almost $6 a share in earnings power until 2017, making it a very inexpensive stock. He believes the companies are going to do well over the long term.
“We have been to stores and have visited regional sales people, and we can see the sales techniques that Men’s Wearhouse uses are going to be able to implement and utilize Jos. A. Bank. So I think that this is going to work out well. Plus, the $150 million in synergies between the two is really going to treat shareholders well over the next three to five years,” Villere said.
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