Men’s Wearhouse was working to find a suitable buyer for its K&G business due to its low profitability, however, it decided against selling K&G. In its 3Q14 earnings call, Men’s Wearhouse CFO Jon Kimmins noted, “We were showing great progress in driving top line, improving gross margins, closing underperforming locations, and improving the overall profitability of K&G.”
The acquisition offers that K&G received were much lower than Men’s Wearhouse’s estimates, so the company decided to improve the profitability of K&G. Kimmins added, “We believe shareholder value is optimized by keeping K&G in our portfolio and continuing to improve its profitability.” Men’s Wearhouse expects to achieve mid–single-digit operating result at K&G.
View more information: https://marketrealist.com/2015/02/mens-wearhouse-stands-competitors/