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Men's Wearhouse Reports Fiscal 2007 Fourth Quarter and Year End Results

- Q4 2007 GAAP diluted EPS was $0.28 versus $0.95 in 2006

- Fiscal 2007 GAAP diluted EPS was $2.73 versus $2.71 in 2006

- Company estimates Fiscal 2008 GAAP diluted EPS in a range of $1.80 to $2.00

- Estimated Fiscal 2008 GAAP diluted EPS includes $0.10 in non-recurring charges

- Conference call at 5:00 pm eastern today

HOUSTON, March 12 /PRNewswire-FirstCall/ -- The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the fourth quarter and fiscal year ended February 2, 2008.


                  Fourth Quarter Sales Summary - Fiscal 2007

                                         Total Sales  Comparable Store Sales
               U.S. dollars, in millions    Change %         Change %
               Current Year  Prior Year(d)            Current Year  Prior Year
    Total
     Company      $535.0       $556.8        - 3.9%
      MW          $318.4(a)    $349.7(a)     - 9.0%      - 5.4%      + 0.0%
      MW Tux (b)   $21.9
      K&G         $109.0       $130.1       - 16.2%     - 17.2%      - 6.1%
       United
        States    $463.9       $486.7        - 4.7%      - 8.6%      - 1.5%
      Moores       $71.1        $70.1        + 1.4%      - 7.3%(c)   + 9.8%(c)


                    Year-To-Date Sales Summary - Fiscal 2007

                                         Total Sales  Comparable Store Sales
               U.S. dollars, in millions    Change %         Change %
               Current Year  Prior Year(d)            Current Year  Prior Year
    Total
     Company    $2,112.6     $1,882.1      + 12.2%
      MW        $1,214.1(a)  $1,209.2(a)    + 0.4%       - 0.4%      + 3.1%
      MW Tux (b)  $199.2
      K&G          407.8       $418.3       - 2.5%      - 10.9%      - 1.8%
       United
        States  $1,862.9    $ 1,653.5      + 12.7%       - 3.0%      + 1.9%
      Moores      $249.7       $228.6       + 9.2%       + 1.5%(c)   + 8.7%(c)

    (a) Includes retail stores and ecommerce.
    (b) MW Tux stores resulting from the acquisition of After Hours on
        April 9, 2007. They will be excluded from comparable store sales
        reporting until Q2 of fiscal 2008.
    (c) Comparable store sales change is based on the Canadian dollar.
    (d) The company follows the retail 4-5-4 reporting calendar which includes
        an extra week in fiscal 2006. Thus, fourth quarter includes 14 weeks
        and full year includes 53 weeks.

This year's 13 week fourth quarter operating income was $21.5 million compared to $73.2 million for last year's 14 week quarter and net income was $14.8 million compared to $52.3 million last year. Diluted earnings per share were $0.28 for the fourth quarter ended February 2, 2008 compared to $0.95 last year. MW Tux (formerly After Hours), after acquisition funding costs, decreased the diluted earnings per share for the fourth quarter by $0.37.

Fiscal year 2007's 52 week operating income was $228.7 million compared to $223.9 million for last year's 53 week period and net income was $147.0 million compared to $148.6 million last year. Diluted earnings per share were $2.73 for the full year compared to $2.71 last year. MW Tux (formerly After Hours), after acquisition funding costs, increased the diluted earnings per share for fiscal year 2007 by $0.02.

It should be noted that the seasonality of MW Tux (formerly After Hours) revenues is heavily concentrated in April, May and June. Second quarter, followed by third quarter, is the highest revenue quarter and first and fourth quarters are considered off season. As a result, MW Tux (formerly After Hours) typically has income in the second and third quarters and losses in the first and fourth quarters.

    FOURTH QUARTER HIGHLIGHTS

    -- Total company sales decreased 3.9% for the 13 week 2007 quarter as
       compared to the 14 week 2006 quarter.  Apparel sales, representing
       87.2% of total sales, decreased 7.8%.  Tuxedo rental revenues,
       representing 6.5% of total sales, increased 130.3%.   Tuxedo rental
       revenues excluding MW Tux (formerly After Hours) increased 3.9%.

         - Comparable store sales decreased 8.6% for the Company's United
           States based stores, below the Company's guidance of negative low
           single digit range.  This under plan performance was primarily
           related to weaker traffic trends at both TMW and K&G.

         - Comparable store sales decreased 7.3% for the Company's Canadian
           based stores, below the Company's guidance of flat to +2%.  This
           decline in comparable store sales is also a result of weaker
           traffic trends.

    -- Gross margin, as a percentage of sales, decreased 183 basis points from
       44.60% to 42.77% primarily due to the inclusion of the MW Tux (formerly
       After Hours) operations which deleveraged occupancy costs due to the
       seasonality of the tuxedo business.

    -- Selling, general, and administrative expenses as a percentage of sales
       increased 728 basis points from 31.46% to 38.74%.  This increase is due
       to the inclusion of the MW Tux (formerly After Hours) operations,
       amplified during the tuxedo off season, as well as the decrease in
       apparel sales.

    -- The effective tax rate for the quarter was 30.6%.

    -- During the quarter, the Company repurchased 1,218,900 shares for a
       total of $27.7 million.

2008 GUIDANCE AND HIGHLIGHTS

In the summer of 2008, the Company expects to close its Canadian based manufacturing facility, operated by its subsidiary, Golden Brand. The company estimates the pre tax cost to close the facility to be approximately $8.5 million or the equivalent of $0.10 per diluted share outstanding for the fiscal year. The estimated pre tax cost for first quarter is $5.5 million or the equivalent of $0.06 per diluted share outstanding, for second quarter is $1.3 million or the equivalent of $0.02 per diluted share outstanding and for third quarter is $1.7 million or the equivalent of $0.02 per diluted share outstanding.

For the fiscal year, the Company expects adjusted diluted earnings per share to be $1.90 to $2.10 excluding the Golden Brand closure costs. Including these costs, diluted earnings per share are expected to be $1.80 to $2.00. This guidance assumes same store sales in the U.S. to decrease in the mid single digit range and in Canada to be flat.

For the first quarter, the Company expects adjusted diluted earnings per share to be $0.20 to $0.24 excluding the Golden Brand closure costs. Including these costs, diluted earnings per share are expected to be $0.14 to $0.18. This guidance assumes same store sales in the U.S. to decrease in the high single digit range and in Canada to decrease in the low single digit range. MW Tux (formerly After Hours) was acquired at the beginning of April 2007. Thus February and March, which are considered off season, were not included in first quarter fiscal 2007 results. The February and March diluted earnings per share impact on first quarter is estimated to be dilutive by $0.22.

For the second quarter, the Company expects adjusted diluted earnings per share to be $0.80 to $0.86 excluding the Golden Brand closure costs. Including these costs, diluted earnings per share are expected to be $0.78 to $0.84. This guidance assumes same store sales in the U.S., including MW Tux (formerly After Hours) stores, to decrease in the mid to high single digit range and in Canada to increase in the low single digit range.

The guidance includes an estimated effective tax rate of approximately 38.3% for the first and second quarters and approximately 37.9% for the full year. The fully diluted shares outstanding are estimated to be 52.1 million.

CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 p.m. Eastern time today, company management will host a conference call and real time web cast to review the results for the fiscal fourth quarter and full year 2007 and provide an outlook for fiscal 2008.

    To access the conference call, dial 303-262-2130. To access the live
webcast presentation, visit the Investor Relations section of the company's
website at http://www.tmw.com.  A telephonic replay will be available through
March 19, 2008 and by calling 303-590-3000 and entering the access code of
11106658#, or a webcast archive will be available free on the website for
approximately 90 days.


    STORE INFORMATION
                               February 2, 2008          February 3, 2007

                              Number     Sq. Ft.        Number     Sq. Ft.
                            of Stores    (000's)      of Stores    (000's)
    Men's Wearhouse            563      3,152.6          543      3,014.8
    MW Tux (a)                 489        652.0
    Moores, Clothing for Men   116        719.8          116        722.7
    K&G (b)                    105      2,428.8           93      2,201.6
    Total                    1,273      6,953.2          752      5,939.1

    (a) MW Tux stores resulting from the acquisition of After Hours on
        April 9, 2007.
    (b) 89 and 73 stores, respectively, offering women's apparel.

Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 1,273 stores. The Men's Wearhouse, Moores and K&G stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories and the MW Tux (formerly After Hours) stores carry a limited selection. Tuxedo rentals are available in the Men's Wearhouse, Moores and MW Tux (formerly After Hours) stores.

This press release contains forward-looking information. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be significantly impacted by various factors, including unfavorable local, regional and national economic developments, disruption in retail buying trends due to homeland security concerns, severe weather conditions, aggressive advertising or marketing activities of competitors, governmental actions and other factors described herein and in the Company's annual report on Form 10-K for the year ended February 3, 2007 and subsequent Forms 10-Q.

For additional information on Men's Wearhouse, please visit the Company's website at http://www.tmw.com.

    CONTACT:  Neill Davis, EVP & CFO, Men's Wearhouse  (281) 776-7200
              Ken Dennard, DRG&E  (713) 529-6600


    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)

                          FOR THE THREE MONTHS ENDED
                    February 2, 2008 and February 3, 2007
                    (In thousands, except per share data)

                                          Three Months Ended
                                            % of                      % of
                                2007        Sales         2006        Sales

    Net sales                $534,958      100.00%     $556,845      100.00%
    Cost of goods sold,
     including buying,
     distribution and
     occupancy costs          306,143       57.23%      308,470       55.40%
        Gross margin          228,815       42.77%      248,375       44.60%

    Selling, general and
     administrative expenses  207,266       38.74%      175,187       31.46%

    Operating income           21,549        4.03%       73,188       13.14%

    Interest income            (1,332)      -0.25%       (2,537)      -0.46%
    Interest expense            1,533        0.29%        2,390        0.43%

    Earnings before income
     taxes                     21,348        3.99%       73,335       13.17%

    Provision for income
     taxes                      6,533        1.22%       21,011        3.77%

    Net earnings              $14,815        2.77%      $52,324        9.40%


    Net earnings per share:
      Basic                     $0.28                     $0.99
      Diluted                   $0.28                     $0.95

    Weighted average common
     shares outstanding:
      Basic                    52,187                    52,965
      Diluted                  52,708                    54,843




    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)

                         FOR THE TWELVE MONTHS ENDED
                    February 2, 2008 and February 3, 2007
                    (In thousands, except per share data)

                                          Twelve Months Ended
                                            % of                      % of
                                2007        Sales         2006        Sales

    Net sales              $2,112,558      100.00%   $1,882,064      100.00%
    Cost of goods sold,
     including buying,
     distribution and
     occupancy costs        1,142,501       54.08%    1,066,359       56.66%
        Gross margin          970,057       45.92%      815,705       43.34%

    Selling, general and
     administrative expenses  741,405       35.10%      591,767       31.44%

    Operating income          228,652       10.82%      223,938       11.90%

    Interest income            (5,987)      -0.28%       (9,786)      -0.52%
    Interest expense            5,046        0.24%        9,216        0.49%

    Earnings before income
     taxes                    229,593       10.87%      224,508       11.93%

    Provision for income
     taxes                     82,552        3.91%       75,933        4.03%

    Net earnings             $147,041        6.96%     $148,575        7.89%


    Net earnings per share:
      Basic                     $2.76                     $2.80
      Diluted                   $2.73                     $2.71

    Weighted average common
     shares outstanding:
      Basic                    53,258                    53,111
      Diluted                  53,890                    54,749





    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
                                                  February 2,    February 3,
                                                       2008           2007
                         ASSETS

    Current assets:
      Cash and cash equivalents                      $39,446       $179,694
      Short-term investments                          59,921              -
      Inventories                                    492,423        448,586
      Other current assets                            79,205         52,549

        Total current assets                         670,995        680,829
    Property and equipment, net                      410,167        289,640
    Tuxedo rental product, net                        84,089         57,565
    Goodwill                                          65,309         56,867
    Other assets, net                                 25,907         12,051

        Total assets                              $1,256,467     $1,096,952

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities                             $277,255       $226,138
    Long-term debt                                    92,399         72,967
    Deferred taxes and other liabilities              70,876         44,075
    Shareholders' equity                             815,937        753,772

        Total liabilities and equity              $1,256,467     $1,096,952




    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)

                         FOR THE TWELVE MONTHS ENDED
                    February 2, 2008 and February 3, 2007
                                (In thousands)

                                                         Twelve Months Ended
                                                         2007           2006
    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net earnings                                    $147,041       $148,575
      Non-cash adjustments to net earnings:
        Depreciation and amortization                   80,296         61,387
        Tuxedo rental product amortization              42,067         16,858
        Other                                           15,073         10,144
      Changes in assets and liabilities                (79,600)       (76,170)

           Net cash provided by operating activities   204,877        160,794

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Capital expenditures                            (126,076)       (72,904)
      Net non-cash assets acquired                     (68,232)             -
      Net purchases and proceeds from the sales of
       available-for-sale investments                  (59,921)        62,775
      Other                                                (40)        (1,506)

           Net cash used in investing activities      (254,269)       (11,635)

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Cash dividends paid                              (12,353)       (10,830)
      Proceeds from revolving credit facility            5,375              -
      Principal payments on debt                             -       (130,000)
      Proceeds from issuance of common stock             7,132         10,823
      Purchase of treasury stock                      (106,106)       (40,289)
      Other                                              1,538          2,052

           Net cash used in financing activities      (104,414)      (168,244)

      Effect of exchange rate changes                   13,558         (1,447)

    DECREASE IN CASH AND CASH EQUIVALENTS             (140,248)       (20,532)
      Balance at beginning of period                   179,694        200,226
      Balance at end of period                         $39,446       $179,694

SOURCE The Men's Wearhouse, Inc.