HOUSTON (AP) — Men’s Wearhouse said Wednesday it will run tuxedo rental shops in 300 Macy’s stores starting this fall, and will also carry a line of tailored clothing from Kenneth Cole.
The company said it will open Macy’s Tuxedo Shops in 17 Macy’s stores in the fall, and it expects to have all 300 locations up and running by the fall of 2016. It will also work with Macy’s to develop a digital rental shop on the Macy’s website on macys.com. Men’s Wearhouse said the deal will last 10 years and it will be the exclusive provider of tuxedo rentals to Macy’s.
Cincinnati-based Macy’s Inc. has 885 stores in the U.S.
Under the deal with Kenneth Cole Productions Inc., the Awearness Kenneth Cole label will launch in September and will include ties, dress shirts, suits, sport coats, and slim-fit dress pants. The clothes will only be available at Men’s Wearhouse and Moores Clothing for Men stores and the Men’s Wearhouse website. A portion of the funds from all products sold will go toward helping veterans transition back into the workforce.
Men’s Wearhouse Inc. did not disclose terms of either agreement. Its shares rose $4.52, or 7.7 percent, to $63.05 in aftermarket trading.
The Houston-based company also reported results for its fiscal first quarter on Wednesday. Men’s Wearhouse said its net income fell 37 percent, to $10.4 million, or 21 cents per share, over the three months that ended on May 2. Excluding one-time items it posted a profit of 54 cents per share. Revenue rose 40 percent to $885.1 million.
Analysts expected adjusted net income of 52 cents per share, according to Zacks Investment Research.