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Men's Wearhouse Reports Fiscal 2009 Third Quarter Results

- Q3 2009 GAAP diluted EPS was $0.37 compared with Q3 2008 GAAP diluted EPS of $0.28 and adjusted diluted EPS of $0.30

- Company provides guidance for the fourth quarter of fiscal 2009

- Conference call at 5:00 pm Eastern today

HOUSTON, Dec. 8 /PRNewswire-FirstCall/ -- The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the third quarter ended October 31, 2009.



                      Third Quarter Sales Summary - Fiscal 2009
-------------------------------------------------------------------------
                         U.S. dollars,   Total Sales    Comparable Store
                         in millions       Change %      Sales Change %
                      -------------------            --------------------
                       Current   Prior                Current    Prior
                        Year      Year                 Year       Year
-------------------------------------------------------------------------
Total Company          $462.0    $459.7      0.5%
  MW                   $317.6(a) $315.6(a)   0.6%     -0.2%(b) -12.1%(b)
  K&G                   $79.3     $80.4    - 1.4%     -1.1%    -13.0%
    United States      $406.0    $406.4    - 0.1%     -0.4%    -12.3%
  Moores                $56.0     $53.3      5.0%      1.9%(c)   4.9%(c)



                      Year-To-Date Sales Summary - Fiscal 2009
-------------------------------------------------------------------------
                         U.S. dollars,   Total Sales    Comparable Store
                         in millions       Change %      Sales Change %
                      -------------------            --------------------
                       Current    Prior                Current   Prior
                        Year       Year                 Year      Year
-------------------------------------------------------------------------
Total Company       $1,452.4     $1,496.1    -2.9%
  MW                  $987.5(a)  $1,006.2(a) -1.9%    -3.0%(b)  -8.9%(b)
  K&G                 $277.4       $277.4     0.0%    -0.8%    -12.0%
    United States   $1,292.1     $1,317.7    -1.9%    -2.5%     -9.6%
  Moores              $160.3       $178.4   -10.1%    -1.9%(c)  -3.8%(c)

(a) Includes retail stores and ecommerce.

(b) Comparable store sales do not include ecommerce. Stores from the After Hours acquisition are included beginning Q2 of fiscal 2008.

(c) Comparable store sales change is based on the Canadian dollar.

Diluted earnings per common share were $0.37 for the third quarter ended October 31, 2009. This compares to diluted earnings per common share guidance given September 9, 2009 of $0.27 to $0.30. Prior year third quarter GAAP diluted earnings per common share were $0.28 and adjusted diluted earnings per common share were $0.30 excluding $1.8 million (pre tax), or $0.02 per diluted share outstanding, in costs incurred in connection with the closure of the Canadian-based manufacturing facility operated by the Company's subsidiary, Golden Brand.

THIRD QUARTER REVIEW

    --  Total Company sales increased 0.5% for the quarter.

    --  Clothing product sales, representing 72.3% of fiscal third quarter 2009
        total net sales, decreased 0.2% due to decreases in the Company's
        comparable store sales primarily driven by a reduction in store traffic
        levels offset by higher average ticket.
    --  Tuxedo rental sales, representing 21.1% of fiscal third quarter 2009
        total net sales, increased 1.2%.
    --  Gross margin before occupancy costs, as a percentage of total net sales,
        decreased 50 basis points from 60.0% to 59.5%.  Clothing product
        margins, as a percentage of related sales, decreased 114 basis points
        due to increased promotional activities and were offset by higher
        alteration service margins and the impact of the higher margin tuxedo
        rental revenues.  Tuxedo rental revenue increased slightly as a mix of
        total sales from 21.0% to 21.1%.
    --  Occupancy costs decreased, as a percentage of total net sales, by 27
        basis points from 15.9% to 15.7%.  On an absolute dollar basis,
        occupancy costs decreased 1.2% from $73.3 million in the prior year to
        $72.4 million.
    --  Selling, general, and administrative expenses were $172.6 million in the
        current year and decreased 2.6% from the prior year's adjusted SG&A of
        $177.1 million which excludes $1.8 million in costs associated with the
        closing of Golden Brand.  The decrease is primarily due to cost-cutting
        measures and operational efficiencies.  As a percentage of total net
        sales, adjusted SG&A decreased 118 basis points from 38.5% to 37.4%. 
        SG&A excluding advertising decreased 4.8% from the adjusted prior year
        quarter.
    --  Operating income was $30.1 million or 6.5% of total net sales compared
        to adjusted operating income of $25.6 million or 5.6% of total net sales
        for the same period last year, excluding $1.8 million in Golden Brand
        closure costs.  Net income was $19.7 million or 4.3% of total net sales
        compared to adjusted net income of $15.7 million or 3.4% of total net
        sales for the same period last year, which excludes $1.1 million in
        Golden Brand closure costs (net of tax).
    --  Cash and cash equivalent balances as of the end of the third quarter of
        2009 were $198.5 million, an increase of $96.8 million over the cash and
        cash equivalent balances plus amounts held in short-term investments as
        of the same period last year.
    --  Total inventories of $473.6 million declined 3.5% from the prior year
        third quarter of $490.8 million.
    --  Long term debt as of the end of the third quarter of 2009 was $43.0
        million, a decrease of $45.6 million from the same period last year.

FOURTH QUARTER FISCAL 2009 GUIDANCE

The Company anticipates comparable store sales to decrease in the low single digit range at the Men's Wearhouse. The Moores comparable store sales are expected to be flat to a low single digit increase. The K&G comparable store sales are anticipated to be flat to a low single digit decrease. Total Company sales are expected to decline in low single digit range for the fourth quarter. This includes a low single digit decrease in tuxedo rental revenues.

Gross profit before occupancy costs for the fourth quarter is expected to decline in the low single digit range from the prior year as the Company begins to anniversary a more aggressive posture in strengthening its value proposition for customers. Occupancy costs are expected to be in a flat to a low single digit decrease for the fourth quarter in absolute dollar terms.

Selling, general and administrative expenses for the fourth quarter are expected to be in the range of flat to a 1% increase from the prior year, excluding advertising costs, a prior year pretax non-cash fixed asset impairment charge of $1.8 million and a prior year gain of $8.8 million associated with an eminent domain sale of a distribution center.

This guidance includes an estimated effective tax rate of approximately 39.0% for the fourth quarter. In the prior year, the Company realized an income tax benefit for the quarter due to favorable developments on certain outstanding income tax matters and a true up of the tax provision for the full year.

The Company's effective tax rate for the fiscal year is now estimated at 36.8%.

Weighted average fully diluted common shares outstanding are estimated to be 52.5 million for the fourth quarter and 52.3 million for the full year.

For the fourth quarter, the Company expects a GAAP loss per share to be in a range of $0.15 to $0.19.

UPDATED CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 pm Eastern time on Tuesday, December 8, 2009, company management will host a conference call and real time web cast to review the fiscal third quarter and its outlook for the fourth quarter of fiscal 2009.

To access the conference call, dial 480-629-9724. 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 December 15, 2009 by calling 303-590-3030 and entering the access code of 4187917#, or a webcast archive will be available free on the website for approximately 90 days.

STORE INFORMATION



               October 31, 2009     November 1, 2008    January 31, 2009
               ----------------     ----------------    ----------------
              Number of  Sq. Ft.   Number of  Sq. Ft.  Number of  Sq. Ft.
                Stores   (000's)    Stores    (000's)    Stores   (000's)
-------------------------------------------------------------------------
Men's
 Wearhouse         581   3,279.8       579   3,248.7       580   3,263.1
-------------------------------------------------------------------------
Men's
 Wearhouse
 and Tux           469     639.9       495     670.4       489     665.0
-------------------------------------------------------------------------
Moores,
 Clothing
 for Men           117     734.6       117     727.9       117     729.3
-------------------------------------------------------------------------
K&G (a)            107   2,475.6       107   2,473.0       108   2,493.4
-------------------------------------------------------------------------
Total            1,274   7,129.9     1,298   7,120.0     1,294   7,150.8

(a) 94, 92 and 93 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 1,274 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.

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 January 31, 2009 and subsequent Forms 10-Q.

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
                        October 31, 2009 AND November 1, 2008
                        (In thousands, except per share data)

                      Three Months Ended                  Variance
               ---------------------------------    --------------------
                        % of              % of                     Basis
                2009     Sales   2008     Sales     Dollar   %    Points
               ---------------------------------    --------------------
Net sales:
  Clothing
   product    $333,882  72.27%  $334,415  72.75%    $(533) (0.16%) (0.48)
  Tuxedo
   rental
   services     97,702  21.15%    96,498  20.99%    1,204   1.25%   0.15
  Alteration
   and other
   services     30,431   6.59%    28,760   6.26%    1,671   5.81%   0.33
               ---------------------------------    --------------------
    Total
     net
     sales     462,015 100.00%   459,673 100.00%    2,342   0.51%   0.00

Total
 cost of
 sales         259,341  56.13%   256,949  55.90%    2,392   0.93%   0.23
               ---------------------------------    --------------------
Gross
 margin (a)    202,674  43.87%   202,724  44.10%      (50) (0.02%) (0.23)

Selling,
 general
 and adminis-
 trative
 expenses      172,595  37.36%   178,955  38.93%   (6,360) (3.55%) (1.57)
               ---------------------------------    --------------------
Operating
 income         30,079   6.51%    23,769   5.17%    6,310  26.55%   1.34

Net
 interest          (19)  0.00%      (234)  0.05%     (215)(91.88%) (0.05)
               ---------------------------------    --------------------
Earnings
 before
 income
 taxes          30,060   6.51%    23,535   5.12%    6,525  27.72%   1.39

Provision
 for income
 taxes          10,375   2.25%     8,948   1.95%    1,427  15.95%   0.30
               ---------------------------------    --------------------
Net earnings   $19,685   4.26%   $14,587   3.17%   $5,098  34.95%   1.09
               =================================   =====================

Net earnings
 per diluted
 common
 share (b)       $0.37             $0.28
                 =====             =====
Weighted
 average
 diluted
 common
 shares
 outstanding:   52,442            52,011
                ======            ======

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

                      Three Months Ended                  Variance
              -----------------------------------  -----------------------
                          % of             % of
                         Related          Related                  Basis
                2009      Sales    2008    Sales   Dollar     %    Points
              -----------------------------------  -----------------------
Clothing
 margin       $186,528   55.87% $190,622   57.00% $(4,094) (2.15%) (1.14)
Tuxedo
 margin         81,205   83.11%   80,296   83.21%     909   1.13%  (0.10)
Alteration
 and other
 services
 margin          7,335  24.10%     5,087   17.69%   2,248  44.19%   6.42
Occupancy
 costs         (72,394)(15.67%)  (73,281) (15.94%)    887   1.21%   0.27
              -----------------------------------  -----------------------
Gross
 margin       $202,674  43.87%  $202,724   44.10%    $(50) (0.02%) (0.23)
              ===================================  =======================

(b)  Calculated based on net earnings less net earnings allocated to
participating securities of $196 thousand for the three months ended
October 31, 2009.




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

                              FOR THE NINE MONTHS ENDED
                        October 31, 2009 AND November 1, 2008
                        (In thousands, except per share data)

                      Nine Months Ended                   Variance
            -------------------------------------  -----------------------
                        % of              % of                     Basis
               2009     Sales   2008     Sales      Dollar    %    Points
            -------------------------------------  -----------------------
Net sales:
  Clothing
   product  $1,057,246  72.80% $1,109,014  74.13% $(51,768) (4.67%) (1.33)
  Tuxedo
   rental
   services    298,688  20.57%    294,145  19.66%    4,543   1.54%   0.90
  Alteration
   and other
   services     96,423   6.64%     92,899   6.21%    3,524   3.79%   0.43
            -------------------------------------  -----------------------
    Total
     net
     sales   1,452,357 100.00%  1,496,058 100.00%  (43,701) (2.92%)  0.00

Total cost
 of sales      823,906  56.73%    828,536  55.38%   (4,630) (0.56%)  1.35
            -------------------------------------  -----------------------
Gross
 margin (a)    628,451  43.27%    667,522  44.62%  (39,071) (5.85%) (1.35)

Selling,
 general and
 adminis-
 trative
 expenses      525,704  36.20%    574,491  38.40%  (48,787) (8.49%) (2.20)
            -------------------------------------  -----------------------

Operating
 income        102,747   7.07%     93,031   6.22%     9,716 10.44%   0.86

Net
 interest         (179)  0.01%     (1,358)  0.09%   (1,179)(86.82%) (0.08)
            -------------------------------------  -----------------------
Earnings
 before
 income
 taxes         102,568   7.06%     91,673   6.13%   10,895  11.88%   0.93

Provision
 for income
 taxes          38,142   2.63%     34,318   2.29%    3,824  11.14%   0.33
            ------------------------------------   -----------------------
Net
 earnings      $64,426   4.44%    $57,355   3.83%   $7,071  12.33%   0.60
            =====================================  =======================

Net earnings
 per diluted
 common
 share (b)       $1.22              $1.10
                 =====              =====
Weighted
 average
 diluted
 common
 shares
 outstanding:   52,218             51,913
                ======             ======

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


                      Nine Months Ended                   Variance
              -----------------------------------  -----------------------
                          % of             % of
                         Related          Related                  Basis
                2009      Sales    2008    Sales   Dollar     %    Points
              -----------------------------------  -----------------------
Clothing
 margin     $572,248   54.13%  $624,256   56.29%  $(52,008) (8.33%) (2.16)
Tuxedo
 margin      248,684   83.26%   244,576   83.15%     4,108   1.68%   0.11
Alteration
 and other
 services
 margin       25,547   26.49%    19,291   20.77%     6,256  32.43%   5.73
Occupancy
 costs      (218,028) (15.01%) (220,601) (14.75%)    2,573   1.17%  (0.27)
             -----------------------------------   -----------------------
Gross
 margin     $628,451   43.27%  $667,522   44.62%  $(39,071) (5.85%) (1.35)
            ====================================  ========================

(b)  Calculated based on net earnings less net earnings allocated to
participating securities of $638 thousand for the nine months ended
October 31, 2009.



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

                                           October 31,      November 1,
                                               2009             2008
                                               ----             ----

                 ASSETS
                 ------

Current assets:
  Cash and cash equivalents                  $198,538          $84,337
  Short-term investments                            -           17,434
  Accounts receivable, net                     17,304           17,804
  Inventories                                 473,626          490,831
  Other current assets                         48,997           66,223
                                               ------           ------

     Total current assets                     738,465          676,629
Property and equipment, net                   370,191          393,391
Tuxedo rental product, net                    100,653           84,702
Goodwill                                       59,111           58,695
Other assets, net                              12,655           18,361
                                               ------           ------

     Total assets                          $1,281,075       $1,231,778
                                           ==========       ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

Current liabilities:
  Accounts payable                           $121,374         $130,944
  Accrued expenses and other current
   liabilities                                106,082          102,347
  Income taxes payable                         24,743              468
                                               ------              ---

     Total current liabilities               $252,199         $233,759
Long-term debt                                 42,985           88,608
Deferred taxes and other liabilities           63,087           65,674
                                               ------           ------

     Total liabilities                        358,271          388,041
                                              -------          -------

Shareholders' equity:
  Preferred stock                                   -                -
  Common stock                                    704              699
  Capital in excess of par                    323,864          312,485
  Retained earnings                           977,659          926,468
  Accumulated other comprehensive income       33,203           16,621
                                               ------           ------
      Total                                 1,335,430        1,256,273

  Treasury stock, at cost                    (412,626)        (412,536)
                                             --------         --------

      Total shareholders' equity              922,804          843,737
                                              -------          -------

     Total liabilities and equity          $1,281,075       $1,231,778
                                           ==========       ==========



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

                        FOR THE NINE MONTHS ENDED
                   October 31, 2009 AND November 1, 2008
                              (In thousands)

                                                Nine Months Ended
                                            -------------------------
                                             2009              2008
                                            -------           -------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net earnings                              $64,426           $57,355
  Non-cash adjustments to net earnings:
     Depreciation and amortization           64,879            68,699
     Tuxedo rental product amortization      33,149            31,739
     Other                                    3,125            11,691
  Changes in assets and liabilities          (3,179)          (81,423)
                                              -----            ------
      Net cash provided by operating
       activities                           162,400            88,061
                                            -------            ------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                      (44,466)          (69,485)
  Purchases of available-for-sale
   investments                                    -           (17,434)
  Proceeds from sales of
   available-for-sale investments            19,410            59,921
  Other investing activities                      -               175
                                                ---               ---
      Net cash used in investing
       activities                           (25,056)          (26,823)
                                             ------            ------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of common stock      3,032             2,359
  Proceeds from revolving credit facility         -           150,600
  Payments on revolving credit facility     (25,000)         (105,975)
  Payments on Canadian term loan                  -           (31,880)
  Cash dividends paid                       (11,029)          (10,936)
  Purchase of treasury stock                    (90)             (156)
  Other financing activities                 (1,426)           (1,277)
                                              -----             -----
      Net cash (used in) provided by
       financing activities                 (34,513)            2,735
                                             ------             -----
  Effect of exchange rate changes             8,295           (19,082)
                                              -----            ------
INCREASE IN CASH AND CASH EQUIVALENTS       111,126            44,891
  Balance at beginning of period             87,412            39,446
                                             ------            ------
  Balance at end of period                 $198,538           $84,337
                                           ========           =======

SOURCE Men's Wearhouse