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Men's Wearhouse Reports Fiscal 2010 First Quarter Results

- Q1 2010 GAAP diluted EPS was $0.26 compared with Q1 2009 GAAP diluted EPS of $0.10

- Company provides guidance for second quarter of fiscal 2010

- Conference call at 5:00 pm Eastern today

HOUSTON, June 9 /PRNewswire-FirstCall/ -- The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the first quarter ended May 1, 2010.

 ____________________________________________________________________________
|                                                                           ||
|___________________________________________________________________________||
|First Quarter Sales Summary – Fiscal 2010                                ||
|___________________________________________________________________________||
|             |                         |           |                       ||
|             |                         |Total Sales|Comparable Store Sales ||
|             |U.S. dollars, in millions|Change %   |Change %               ||
|_____________|_________________________|___________|_______________________||
|             |Current Year|Prior Year  |           |Current Year|Prior Year||
|_____________|____________|____________|___________|____________|__________||
|Total Company|$ 473.5     |$ 464.1     |2.0%       |            |          ||
|_____________|____________|____________|___________|____________|__________||
|MW           |$ 318.3(a)  |$ 310.9(a)  |2.4%       |2.4% (b)    |- 7.0% (b)||
|_____________|____________|____________|___________|____________|__________||
|K&G          |$ 98.3      |$ 104.5     |- 6.0%     |- 4.9%      |2.3%      ||
|_____________|____________|____________|___________|____________|__________||
|United States|$ 426.1     |$ 425.0     |0.2%       |0.5%        |- 4.7%    ||
|_____________|____________|____________|___________|____________|__________||
|Moores       |$ 47.4      |$ 39.1      |21.3%      |0.2% (c)    |- 4.3% (c)||
|_____________|____________|____________|___________|____________|__________||
|(a) Total sales from retail stores and ecommerce.                          ||
|                                                                           ||
|(b) Comparable store sales do not include ecommerce.                       ||
|                                                                           ||
|(c) Comparable store sales change is based on the Canadian dollar.         ||
|___________________________________________________________________________||




Diluted earnings per share were $0.26 for the first quarter ended May 1, 2010.  This compares to diluted earnings per share guidance given March 10, 2010 of $0.12 to $0.16.  Prior year first quarter GAAP diluted earnings per share were $0.10.

FIRST Quarter REVIEW

    --  Total Company sales increased 2.0% for the quarter.
        o Clothing product sales, representing 77.8% of fiscal first quarter
          2010 total net sales, increased 2.6% due mainly to a favorable change
          in the U.S./Canadian dollar exchange rate and an increase in Men's
          Wearhouse comparable store sales resulting from increased store
          traffic levels.
        o Tuxedo rental sales, representing 15.2% of fiscal first quarter 2010
          total net sales, increased 1.0%.


    --  Gross margin before occupancy costs, as a percentage of total net sales,
        increased 105 basis points from 56.1% to 57.2%. Clothing product
        margins, as a percentage of related sales, increased 122 basis points
        due primarily to different promotional offerings, as well as the mix of
        products on promotion, in 2010 compared to 2009 and lower product costs.
        Tuxedo rental margins, as a percentage of related sales, increased 115
        basis points due primarily to lower product costs.
    --  Occupancy costs decreased, as a percentage of total net sales, by 92
        basis points from 15.6% to 14.7%. On an absolute dollar basis, occupancy
        costs decreased 4.0% from $72.6 million in the prior year to $69.7
        million due primarily to lower depreciation costs.
    --  Selling, general, and administrative expenses were $179.7 million in the
        current year and increased 0.2% from the prior year's SG&A of $179.2. As
        a percentage of total net sales, SG&A decreased 67 basis points from
        38.6% to 37.9%.
    --  Operating income was $21.4 million or 4.5% of total net sales compared
        to operating income of $8.8 million or 1.9% of total net sales for the
        same period last year.
    --  Cash and cash equivalent balances as of the end of the first quarter of
        2010 were $219.6 million.
    --  Total inventories of $435.4 million declined 2.8% from the prior year
        first quarter of $448.0 million.
    --  Current maturities of long-term debt were $45.8 million as of the end of
        the first quarter of 2010.


SECOND QUARTER 2010 GUIDANCE

    --  For the second quarter of the fiscal year, the Company expects GAAP
        diluted earnings per share in a range of $0.75 to $0.78.
    --  The Company anticipates comparable store sales at its MW stores to
        increase in the low single digit range, at K&G a decrease in the low to
        mid single digit range and at Moores a flat to low single digit
        increase. Included in this outlook is a low double digit increase in
        comparable store tuxedo rental revenues.
    --  Total gross profit for the second quarter is expected to increase in the
        high single digit range from the prior year. Occupancy costs are
        expected to decrease in a low single digit range in absolute dollar
        terms. Selling, general and administrative expenses are expected to
        increase in the high single digit range from the prior year excluding
        the $3.2 million gift card breakage income recognized in the prior year
        second quarter. SG&A expenses excluding marketing expenses are expected
        to increase in the mid single digit range over the adjusted prior year
        quarter.
    --  This guidance includes an estimated effective tax rate of 37.5% for the
        second quarter and an estimated effective tax rate of 36.0% for the full
        year.
    --  Fully diluted shares outstanding of 52.765 million are estimated for the
        second quarter.


UPDATED CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 p.m. Eastern time on Wednesday, June 9, 2010, Company management will host a conference call and real time web cast to review the fiscal first quarter and its outlook for the second quarter of fiscal 2010.    

To access the conference call, dial 480-629-9770. To access the live webcast presentation, visit the Investor Relations section of the Company's website at www.menswearhouse.com.  A telephonic replay will be available through June 16, 2010 by calling 303-590-3030 and entering the access code of 4307183#, or a webcast archive will be available free on the website for approximately 90 days.


STORE INFORMATION



                May 1, 2010       May 2, 2009       January 30, 2010



                          Sq. Ft.           Sq. Ft.                  Sq. Ft.
                Number of         Number of
                Stores    (000's) Stores    (000's) Number of Stores (000's)



Men's Wearhouse 582       3,292.7 581       3,276.7 581              3,284.4



Men's Wearhouse
and Tux         447       614.1   478       651.9   454              623.4



Moores,
Clothing for
Men             117       735.5   117       732.7   117              734.6



K&G (a)         106       2,465.6 108       2,488.4 107              2,475.6



Total           1,252     7,107.9 1,284     7,149.7 1,259            7,118.0

(a) 95, 94 and 94 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 1,252 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 Men's Wearhouse and Tux stores carry a limited selection.  Tuxedo rentals are available in the Men's Wearhouse, Moores and Men's Wearhouse and Tux stores.  The Company operates websites at www.menswearhouse.com, www.mooresclothingformen.com and www.kgstores.com.

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 sensitivity to economic conditions and consumer confidence, possibility of limited ability to expand Men's Wearhouse stores, possibility that certain of our expansion strategies may present greater risks and other factors described in the Company's annual report on Form 10-K for the fiscal year ended January 30, 2010.

For additional information on Men's Wearhouse, please visit the Company's website at www.menswearhouse.com.


CONTACT: Neill Davis, EVP & CFO, Men's Wearhouse (281) 776-7000

         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

May 1, 2010 AND May 2, 2009

(In thousands, except per share data)



                   Three Months Ended                   Variance

                             % of              % of                      Basis

                   2010      Sales   2009      Sales    Dollar  %        Points



Net sales:

Clothing product   $ 368,371 77.80%  $ 359,062 77.36%   $ 9,309 2.59%    0.44

Tuxedo rental
services           72,154    15.24%  71,419    15.39%   735     1.03%    (0.15)

Alteration and
other services     32,941    6.96%   33,653    7.25%    (712)   (2.12%)  (0.29)

Total net sales    473,466   100.00% 464,134   100.00%  9,332   2.01%    0.00



Total cost of
sales              272,394   57.53%  276,145   59.50%   (3,751) (1.36%)  (1.96)



Gross margin (a)   201,072   42.47%  187,989   40.50%   13,083  6.96%    1.96



Selling, general
and administrative
expenses           179,650   37.94%  179,213   38.61%   437     0.24%    (0.67)



Operating income   21,422    4.52%   8,776     1.89%    12,646  144.10%  2.63



Net interest       (225)     (0.05%) (160)     (0.03%)  (65)    (40.63%) (0.01)



Earnings before
income taxes       21,197    4.48%   8,616     1.86%    12,581  146.02%  2.62



Provision for
income taxes       7,589     1.60%   3,360     0.72%    4,229   125.86%  0.88



Net earnings       $ 13,608  2.87%   $ 5,256   1.13%    $ 8,352 158.90%  1.74





Net earnings per
diluted common
share (b)          $ 0.26            $ 0.10



Weighted average
diluted common
shares
outstanding:       52,628            51,955



(a) Gross margin as a percentage of related sales:






             Three Months Ended                     Variance

             2010      % of     2009      % of                       Basis

                       Related            Related
                       Sales              Sales     Dollar   %       Points

Clothing
margin       $ 201,058 54.58%   $ 191,605 53.36%    $ 9,453  4.93%   1.22

Tuxedo
margin       60,828    84.30%   59,387    83.15%    1,441    2.43%   1.15

Alteration
and other
services
margin       8,877     26.95%   9,563     28.42%    (686)    (7.17%) (1.47)

Occupancy
costs        (69,691)  (14.72%) (72,566)  (15.63%)  2,875    3.96%   0.92

Gross margin $ 201,072 42.47%   $ 187,989 40.50%    $ 13,083 6.96%   1.96



(b) Calculated based on net earnings less net earnings allocated to
participating securities.






THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



                                                May 1,       May 2,

                                                2010         2009



ASSETS



Current assets:

 Cash and cash equivalents                      $ 219,562    $ 107,538

 Short-term investments                         -            17,707

 Accounts receivable, net                       24,640       24,858

 Inventories                                    435,351      448,018

 Other current assets                           68,830       59,752



 Total current assets                           748,383      657,873

Property and equipment, net                     336,771      378,510

Tuxedo rental product, net                      101,731      120,083

Goodwill                                        60,780       57,622

Other assets, net                               16,690       12,439



 Total assets                                   $ 1,264,355  $ 1,226,527



LIABILITIES AND SHAREHOLDERS' EQUITY



Current liabilities:

 Accounts payable                               $ 99,720     $ 142,984

 Accrued expenses and other current liabilities 136,183      127,868

 Income taxes payable                           2,826        3,461

 Current maturities of long-term debt           45,780       -



 Total current liabilities                      284,509      274,313

Long-term debt                                  -            39,213

Deferred taxes and other liabilities            62,741       63,955



 Total liabilities                              347,250      377,481



Shareholders' equity:

 Preferred stock                                -            -

 Common stock                                   707          702

 Capital in excess of par                       329,030      316,034

 Retained earnings                              962,834      925,881

 Accumulated other comprehensive income         37,304       19,055

 Treasury stock, at cost                        (412,770)    (412,626)



 Total shareholders' equity                     917,105      849,046



 Total liabilities and equity                   $ 1,264,355  $ 1,226,527








THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



FOR THE THREE MONTHS ENDED

May 1, 2010 AND May 2, 2009

(In thousands)



                                           Three Months Ended

                                           2010       2009



CASH FLOWS FROM OPERATING ACTIVITIES:

 Net earnings                              $ 13,608   $ 5,256

 Non-cash adjustments to net earnings:

 Depreciation and amortization             18,690     22,222

 Tuxedo rental product amortization        6,978      7,644

 Other                                     9,335      7,867

 Changes in assets and liabilities         663        20,313



 Net cash provided by operating activities 49,274     63,302



CASH FLOWS FROM INVESTING ACTIVITIES:

 Capital expenditures                      (11,099)   (15,035)



 Net cash used in investing activities     (11,099)   (15,035)



CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from issuance of common stock    783        506

 Payments on revolving credit facility     -          (25,000)

 Cash dividends paid                       (4,756)    (3,664)

 Other financing activities                (2,037)    (1,697)



 Net cash used in financing activities     (6,010)    (29,855)



 Effect of exchange rate changes           1,379      1,714



INCREASE IN CASH AND CASH EQUIVALENTS      33,544     20,126

 Balance at beginning of period            186,018    87,412

 Balance at end of period                  $ 219,562  $ 107,538







SOURCE Men's Wearhouse