Andrew Sohn Notes: MW, SNOW

Rentals down

 

“Rental was down 3.3% as we continued to see an increase in wedding parties electing to purchase retail as an alternative to renting.” -Men’s Wearhouse (MW)

 

Big changes to Joseph Bank promotional model

 

“The current Joseph Bank promotional model has been in place for years. Historical practices include aggressive quantity discounting that frequently relies on buy one and get three or more free offers, requiring customers to buy more than they would naturally want at one time and makes perspective customers question the value proposition. We know most men don’t want to buy suites four at a time. Our research with the Joseph Bank customer tells us this, which is reinforced by our own experience. These promotional offers are not working for our customers and they are not working for us.” -Men’s Wearhouse (MW)

 

Trying to send a different message

“What we are going to do is we’re going to give the customers compelling values on our great quality product and not requiring them to buy larger quantity than they want to buy. So we can give great prices on single unit purchases or two for pricing, buy one get one frees. But it’s really going to be a shift in talking to our customers about what they are going to pay for the goods instead of what they are going to save on the goods.” -Men’s Wearhouse (MW)

 

Traffic is good on the mountain

 

“Our fiscal 2015 results reflect select price increases, higher visitations, and increased market share in our Mountain Segment due to strong season pass and frequency product sales, and the impact of certain growth capital investments.” -Intrawest resorts holdings (SNOW)

 

Growth despite decline in skiing

 

“On a same-store basis, Mountain revenue grew 6.4% and Mountain adjusted EBITDA increased 12.6%. We are especially pleased with its growth given the challenging conditions and the decline in skier visits across the country.” -Intrawest resorts holdings (SNOW)

 

 

Fall quarter looking good

 

“Season pass and frequency product sales for this coming season are pacing well ahead of last year both for our individual resort passes and our multi-mountain products. Heading into the fall sales promotions, seasons pass and frequency product sales were up more than 15% compared to the same time last year” -Intrawest resorts holdings (SNOW)

 

Don’t quite know the impact of El Nino on sales

 

“The reality is we’ve had El Nino’s in the past quite frequently and sometimes they result in average conditions, sometimes they result in better than average conditions and sometimes they result in below average conditions. And there is all sorts of factors that affect the weather and the snowfall and it’s way too early to tell to really have a constructive view on what’s going to happen.” -Intrawest resorts holdings (SNOW)

 

Strong currency helping out Canadian sales despite weak economy

 

“First of all, we think that one of the things that’s going to actually help us up in Tremblant is the weaker currency will most likely cause Canadians to stay home and will drive visitation at our Canadian locations.” -Intrawest resorts holdings (SNOW)

Men’s Wearhouse 4Q12 Earnings Call Notes

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“we have what we consider a strong January. In February, February got off to a slow start for us. We were comping negatively in all 3 retail divisions up until about President’s weekend. And then business turned positive, we’ve been basically positive since. And so we see business somewhat normalizing since President’s weekend, overall.”

“I think it is clear that the more promotional one is, the less each promotion works. And of course, one of our direct competitors is experiencing that problem at a magnitude greater than we are.”