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Men's Wearhouse Reports Fiscal 2008 Third Quarter Results

- Q3 2008 GAAP diluted EPS was $0.28 and adjusted diluted EPS was $0.30 compared with Q3 2007 GAAP diluted EPS of $0.69

- Company estimates Q4 2008 GAAP diluted EPS in a range of $0.00 to ($0.18)

- Company estimates fiscal 2008 GAAP diluted EPS in a range of $0.92 to $1.10 and adjusted diluted EPS in a range of $1.04 to $1.22

- Conference call at 5:00 pm eastern today

    HOUSTON, Nov. 19 /PRNewswire-FirstCall/ -- The Men's Wearhouse (NYSE: MW)
today announced its consolidated financial results for the third quarter ended
November 1, 2008.



                    Third Quarter Sales Summary - Fiscal 2008
                                                 Total
                          U.S. dollars, in       Sales     Comparable Store
                              millions          Change %    Sales Change %
                         Current      Prior              Current     Prior
                           Year        Year                Year       Year
    Total Company         $459.7       $512.1    -10.2%
      MW                  $315.6(a)    $354.1(a) -10.9%   -12.1%(b)   +0.6%(b)
      K&G                  $80.4        $87.7     -8.3%   -13.0%     -11.3%
        United States     $406.4       $451.7    -10.0%   -12.3%     - 2.1%
      Moores               $53.3        $60.5    -11.9%    -4.9%(c)   +0.6%(c)



                    Year-To-Date Sales Summary - Fiscal 2008
                                                 Total
                           U.S. dollars, in      Sales     Comparable Store
                               millions         Change %    Sales Change %
                         Current      Prior              Current     Prior
                           Year        Year                Year       Year
    Total Company       $1,496.1     $1,577.6     -5.2%
      MW                $1,006.2(a)  $1,073.1(a)  -6.2%    -8.9%(b)   +1.5%(b)
      K&G                 $277.4       $298.8     -7.2%   -12.0%      -8.0%
        United States   $1,317.7     $1,399.0     -5.8%    -9.6%      -0.8%
      Moores              $178.4       $178.6     -0.1%    -3.8%(c)   +5.1%(c)


    (a) Includes retail stores and ecommerce as well as the MW Tux stores
        resulting from the acquisition of After Hours on April 9, 2007.
    (b) Comparable store sales do not include ecommerce.  MW Tux stores are
        included beginning Q2 of fiscal 2008.
    (c) Comparable store sales change is based on the Canadian dollar.


Diluted earnings per share were $0.28 for the third quarter ended November 1, 2008. Adjusted diluted earnings per share were $0.30 after excluding $1.1 million (net of tax), $0.02 per diluted share outstanding, of closure costs incurred in connection with the Company's previously announced closure of the Canadian based manufacturing facility operated by the Company's subsidiary, Golden Brand. This compares to adjusted diluted earnings per share guidance given October 8, 2008 of $0.24 to $0.28.

    THIRD QUARTER REVIEW
    -- Total Company sales decreased 10.2% for the quarter.

       -- Clothing product sales, representing 72.75% of fiscal third quarter
          2008 total net sales, decreased 12.9% due to decreases in the
          Company's comparable store sales primarily driven by a reduction in
          store traffic levels.

       -- Tuxedo rental sales, representing 20.99% of fiscal third quarter
          2008 total net sales, increased 0.4%.

    -- Gross margin before occupancy costs, as a percentage of total net
       sales, decreased 80 basis points from 60.84% to 60.04%.  Decreases in
       clothing product margins, as a percentage of related sales, of
       154 basis points were offset by a higher margin tuxedo rental business
       that increased from 18.76% to 20.99% as a percentage of total sales.

    -- Occupancy costs increased, as a percentage of total net sales, by
       205 basis points from 13.89% to 15.94% primarily due to the
       deleveraging effect of reduced comparable store sales.

    -- Selling, general, and administrative expenses were $179.0 million.
       Excluding $1.8 million in costs associated with the closing of Golden
       Brand, SG&A expenses of $177.1 million were lower compared to the prior
       year quarter of $181.3 million and as a percentage of total net sales
       increased 314 basis points from 35.40% to 38.54%.  The basis point
       increase was primarily due to the deleveraging effect of reduced
       comparable store sales.

    -- Operating income was $23.8 million.  Excluding $1.8 million in costs
       associated with the closing of Golden Brand, operating income was
       $25.6 million or 5.57% of total net sales compared to $59.2 million, or
       11.55% of total net sales for the same period last year.

    -- The effective tax rate for the 2008 third quarter was 38.0%.

FOURTH QUARTER 2008 GUIDANCE

The Company expects diluted earnings per share of $0.00 to a loss of $0.18 for the fourth quarter of 2008. This guidance assumes same store sales at MW, including MW Tux stores, to decrease in the mid single digit to low double digit range, at K&G to decrease in the high single digit to low double digit range and at Moores to decrease in the low single digit range.

FISCAL 2008 GUIDANCE

On July 11, 2008, the Canadian based manufacturing facility operated by the Company's subsidiary, Golden Brand, was closed. The pre tax cost to close the facility was $10.0 million or the equivalent of $0.12 per diluted share outstanding for the fiscal year. The pre tax cost for the first quarter was $0.9 million or the equivalent of $0.01 per diluted share outstanding. The pre tax cost for the second quarter was $7.3 million or the equivalent of $0.09 per diluted share outstanding. The pre tax cost for the third quarter was $1.8 million or the equivalent of $0.02 per diluted share outstanding.

The Company is updating its adjusted diluted earnings per share outlook for the year to a range of $1.04 to $1.22 excluding the Golden Brand closure costs of $0.12 per diluted share outstanding. Including these costs, GAAP diluted earnings per share are expected to be $0.92 to $1.10.

The guidance includes an estimated effective tax rate of approximately 36.0% for the full year. The fully diluted shares outstanding are estimated to be 51.9 million.

CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 p.m. eastern time on Wednesday, November 19, 2008, Company management will host a conference call and real time web cast to review the fiscal third quarter and its outlook for fiscal 2008.

To access the conference call, dial 303-262-2211. 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 November 26, 2008 by calling 303-590-3000 and entering the access code of 11120945# or a webcast archive will be available free on the website for approximately 90 days.



    STORE INFORMATION
                    November 1, 2008    November 3, 2007    February 2, 2008

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

    Men's Wearhouse     579    3,248.7     560    3,132.3     563    3,152.6

    MW Tux (a)          495      670.4     493      654.8     489      652.0

    Moores, Clothing
     for Men            117      727.9     116      717.8     116      719.8

    K&G (b)             107    2,473.0     103    2,392.4     105    2,428.8

    Total             1,298    7,120.0   1,272    6,897.3   1,273    6,953.2


    (a) MW Tux stores resulting from the acquisition of After Hours on
        April 9, 2007.
    (b) 92, 83 and 89 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 1,298 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 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 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 year ended February 2, 2008 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) 776-7000
               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
                    November 1, 2008 AND November 3, 2007
                    (In thousands, except per share data)

                                                  Three Months Ended
                                                     % of              % of
                                             2008   Sales      2007   Sales

    Net sales:

              Clothing product            $334,415  72.75%  $384,047  74.99%
              Tuxedo rental services        96,498  20.99%    96,090  18.76%
              Alteration and other
               services                     28,760   6.26%    31,999   6.25%
                   Total net sales         459,673 100.00%   512,136 100.00%

    Cost of sales:
            Clothing product including
             buying and distribution
             costs                         143,793  31.28%   159,204  31.09%
            Tuxedo rental services          16,202   3.52%    16,383   3.20%
            Alteration and other
             services                       23,673   5.15%    24,941   4.87%
            Occupancy costs                 73,281  15.94%    71,137  13.89%
                   Total cost of sales     256,949  55.90%   271,665  53.05%

    Gross margin                           202,724  44.10%   240,471  46.95%

    Selling, general and administrative
     expenses                              178,955  38.93%   181,307  35.40%

    Operating income                        23,769   5.17%    59,164  11.55%

    Interest income                           (744) (0.16%)   (1,352) (0.26%)
    Interest expense                           978   0.21%     1,304   0.25%

    Earnings before income taxes            23,535   5.12%    59,212  11.56%

    Provision for income taxes               8,948   1.95%    22,145   4.32%

    Net earnings                           $14,587   3.17%   $37,067   7.24%


    Net earnings per share:
        Basic                                $0.28             $0.70
        Diluted                              $0.28             $0.69

    Weighted average common shares
     outstanding:
        Basic                               51,703            53,141
        Diluted                             52,011            53,775



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

                          FOR THE NINE MONTHS ENDED
      November 1, 2008, November 3, 2007 AND PRO FORMA November 3, 2007
                    (In thousands, except per share data)

                                      Nine Months Ended
                              % of               % of    Pro Forma  % of
                      2008    Sales      2007    Sales      2007    Sales

    Net sales:
      Clothing
       product    $1,109,014  74.13% $1,189,945  75.43% $1,193,463  74.24%
      Tuxedo
       rental
       services      294,145  19.66%    290,521  18.42%    316,855  19.71%
      Alteration
       and other
       services       92,899   6.21%     97,134   6.16%     97,262   6.05%
         Total net
          sales    1,496,058 100.00%  1,577,600 100.00%  1,607,580 100.00%

    Cost of sales:
      Clothing
       product
       including
       buying and
       distribution
       costs         484,758  32.40%    512,360  32.48%    514,974  32.03%
      Tuxedo rental
       services       49,569   3.31%     52,072   3.30%     56,313   3.50%
      Alteration and
       other
       services       73,608   4.92%     74,346   4.71%     74,346   4.62%
      Occupancy
       costs         220,601  14.75%    197,580  12.52%    203,974  12.69%
         Total cost
          of sales   828,536  55.38%    836,358  53.01%    849,607  52.85%

    Gross margin     667,522  44.62%    741,242  46.99%    757,973  47.15%

    Selling, general
     and
     administrative
     expenses        574,491  38.40%    534,139  33.86%    563,918  35.08%

    Operating income  93,031   6.22%    207,103  13.13%    194,055  12.07%

    Interest income   (2,259) (0.15%)    (4,655) (0.30%)    (4,177) (0.26%)
    Interest expense   3,617   0.24%      3,513   0.22%      3,724   0.23%

    Earnings before
     income taxes     91,673   6.13%    208,245  13.20%    194,508  12.10%

    Provision for
     income taxes     34,318   2.29%     76,019   4.82%     70,878   4.41%

    Net earnings     $57,355   3.83%   $132,226   8.38%   $123,630   7.69%

    Net earnings
     per share:
      Basic            $1.11              $2.47              $2.31
      Diluted          $1.10              $2.44              $2.28

    Weighted average
     common shares
     outstanding:
      Basic           51,604             53,614             53,614
      Diluted         51,913             54,284             54,284

Note: The pro forma condensed consolidated statement of earnings presents the Company's results of operations as if the After Hours acquisition had occurred on January 29, 2006, after giving effect to certain purchase accounting adjustments. The pro forma information is not necessarily indicative of actual results had the acquisition occurred on January 29, 2006.



    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)

                                                   November 1,     November 3,
                                                      2008            2007

                 ASSETS

    Current assets:
      Cash and cash equivalents                      $84,337        $102,531
      Short-term investments                          17,434               -
      Accounts receivable, net                        17,804          24,118
      Inventories                                    490,831         515,917
      Other current assets                            66,223          69,217

         Total current assets                        676,629         711,783
    Property and equipment, net                      393,391         392,917
    Tuxedo rental product, net                        84,702          71,120
    Goodwill                                          58,695          73,674
    Other assets, net                                 18,361          23,204

         Total assets                             $1,231,778      $1,272,698

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                              $130,944        $131,543
      Accrued expenses and other current
       liabilities                                   102,347         123,214
      Income taxes payable                               468          19,425

         Total current liabilities                   233,759         274,182
    Long-term debt                                    88,608          92,595
    Deferred taxes and other liabilities              65,674          68,294

         Total liabilities                           388,041         435,071

    Shareholders' equity:
      Preferred stock                                      -               -
      Common stock                                       699             695
      Capital in excess of par                       312,485         301,690
      Retained earnings                              926,468         868,968
      Accumulated other comprehensive income          16,621          51,929
          Total                                    1,256,273       1,223,282

      Treasury stock, at cost                       (412,536)       (385,655)

          Total shareholders equity                  843,737         837,627

          Total liabilities and equity            $1,231,778      $1,272,698



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

                          FOR THE NINE MONTHS ENDED
                    November 1, 2008 AND November 3, 2007
                                (In thousands)
                                                          Nine Months Ended
                                                           2008        2007

    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net earnings                                       $57,355    $132,226
      Non-cash adjustments to net earnings:
         Depreciation and amortization                    68,699      57,293
         Tuxedo rental product amortization               31,739      36,976
         Other                                            11,691       7,987
      Changes in assets and liabilities                  (81,423)    (91,398)

              Net cash provided by operating activities   88,061     143,084

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Capital expenditures                               (69,485)    (90,394)
      Net non-cash assets acquired                             -     (68,253)
      Purchases of available-for-sale investments        (17,434)   (277,480)
      Proceeds from sales of available-for-sale
       investments                                        59,921     277,480
      Other investing activities                             175         (91)

              Net cash used in investing activities      (26,823)   (158,738)

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Cash dividends paid                                (10,936)     (9,186)
      Proceeds from revolving credit facility            150,600           -
      Payments on revolving credit facility             (105,975)          -
      Payments on Canadian term loan                     (31,880)          -
      Proceeds from issuance of common stock               2,359       6,323
      Purchase of treasury stock                            (156)    (78,080)
      Other financing activities                          (1,277)      1,195

              Net cash provided by (used in)
               financing activities                        2,735     (79,748)

      Effect of exchange rate changes                    (19,082)     18,239

    INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS      44,891     (77,163)

      Balance at beginning of period                      39,446     179,694
      Balance at end of period                           $84,337    $102,531

SOURCE Men's Wearhouse