I’m really not what you’d call a “hater.” Sure there are some things that get me fired up, like LeBron, the Packers, or the school to the north of my Evanston Wildkits, but overall I’m pretty much even keel on most subjects. I’m also very loyal to those that are loyal to me. I’ve been wearing Jordan’s my whole life, Ralph Lauren Polo shirts daily, and I’ve been covered in Cubby blue for decades.
That blade cuts both ways though and when you do me wrong…I never let it go. My loyalty can be earned back but it takes work. In a prior life, I had to wear a suit and tie to work every day. So I found what I thought was a magnificent store, the Men’s Wearhouse (MW – Snapshot Report), joined their Perfect Fit Club and got spending. Over the course of the first year or two of my professional life, I must have bought four suits, ten shirts and ten ties from the Men’s Wearhouse. And I liked the way I looked. I guarantee it.
Then one day my cousin got married so I rented a tuxedo from, you guessed it, Men’s Wearhouse. The wedding was on a Saturday out of town. I went to the wedding, had a blast, stayed in a hotel, got home later on Sunday and went to bed. The next day I came back to the Men’s Wearhouse, turned in my tux and was told I owed $25. After spending $175 on the tux, I asked, “Is something wrong? Did I lose something?” I was told I owed a late payment on the tux for not returning it on time.
“A late fee? I returned it on the next business day!” The cashier told me it was due the next day, not the next business day. Even though they will let you pick your tux up a full week before your event, if it’s not returned the Sunday after the event, they will charge $25. And, Sunday’s hours are shorter as the store closes at 6pm rather than the usual 9pm.
I asked politely to let me slide. I begged them to help me out. I pleaded my case as Perfect Fit member, they could see the money I’ve spent there. I told them I buy lots of clothes and would shop there a lot in the future and still, they wouldn’t budge.
I took out my wallet, stared the clerk his eye. Took out my card and said “Charge that card for $25 and I swear to God it will be the last $25 I ever spend in this place.” He took my card and charged me $25. That was over a decade ago and I still tell everyone I know, “Don’t go to Men’s Wearhouse” and I tell them the story.
I was forced to get a tux for my sister’s wedding this weekend from, guess where, Men’s Wearhouse. In keeping my promise, I gave my Mom money for the tux and had her pay for it.
This Zacks Rank #5 (Strong Sell) dropped 43% last Friday after the company trimmed their 2015 outlook and gave horrible Q3 preliminary numbers. That got analysts in gear and the downward revisions came flowing in. Three analysts have decreased estimates for the current quarter, current year and next year. The dramatic cuts have taken our Zacks Consensus Estimate from $1.06 to 50 cents for the current quarter and down from $4.19 to $2.55 for next year.
I wanted to make Men’s Wearhouse my go-to place for clothing. But a petty clerk decided to take $25 over a lifetime of loyalty and support. Maybe one day I’ll give this place another chance. Until them, as far as I’m concerned, they owe me $25.
If you’re looking for other names in retail to invest in, take a look at Zacks Rank #1 (Strong Buy) American Eagle Outfitters (AEO – Analyst Report) or Zacks Rank #2 (Buy) L Brands (LB – Analyst Report).
Be sure to click FOLLOW THE AUTHOR above to stay on top of all the hot momentum stocks at Zacks.com. David Bartosiak is the Momentum Stock Strategist with Zacks, editor of the Momentum Trader and Home Run Investor, and host of “Trending Stocks”