NEW YORK, Dec 9 (Reuters) - Shares of clothing retailer Men’s Wearhouse could rally up to 25 percent next year as sales improve, despite weaker-than-expected third-quarter earnings last week, Barron’s said on Sunday.
Shares of Men’s Wearhouse opened 12.5 percent lower on Thursday after Wednesday’s results, and finished the week down 6 percent at $30.48, but a promising sales outlook for 2013, and new, slimmer suit cuts, could see them rebound to $38 in the new year, Barron’s said in its Dec. 10 issue.
“Men’s Wearhouse is like a fine suit with a few wrinkles,” Barron’s said. “And it is selling at a very nice discount.”
Still, the suit maker, whose earnings are typically tied to employment figures, does face the threat of another recession and stiff opposition from other retailers, Barron’s said.