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Men's Wearhouse Reports Fiscal 2010 Third Quarter Results

- Q3 2010 GAAP diluted EPS was $0.47 and adjusted diluted EPS was $0.57 compared with Q3 2009 revised GAAP diluted EPS of $0.36

- Company provides guidance for fourth quarter of fiscal 2010

- Conference call at 5:00 pm Eastern today

HOUSTON, Dec. 7, 2010 /PRNewswire-FirstCall/ -- The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the third quarter ended October 30, 2010.




Third 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   $ 550.1      $ 462.0      19.1%

Total Retail
Segment         $ 494.6      $ 458.3      7.9%

MW              $ 349.1      $ 317.6      9.9%        9.6% (c)     - 0.2% (c)

K&G             $ 78.0       $ 79.3       - 1.6%      - 0.2%       - 1.1%

Moores Canada   $ 61.5       $ 56.0       9.9%        5.6% (b)     1.9% (b)

Corporate
Apparel Segment $ 55.5       $ 3.7        1,396.5%










Year-To-Date 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   $ 1,560.6 (a) $ 1,452.4 (a) 7.5%

Total Retail
Segment         $ 1,496.7     $ 1,441.9     3.8%

MW              $ 1,034.8     $ 987.5       4.8%        4.8% (c)     - 3.0% (c)

K&G             $ 263.9       $ 277.4       - 4.9%      - 3.5%       - 0.8%

Moores Canada   $ 180.4       $ 160.3       12.6%       2.1% (b)     - 1.9% (b)

Corporate
Apparel Segment $ 63.8        $ 10.4        512.9%







(a)  Due to rounded numbers total Company may not sum.

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

(c)  Does not include ecommerce sales.  

GAAP diluted earnings per share were $0.47 for the third quarter ended October 30, 2010.  Adjusted diluted earnings per share were $0.57 after excluding $1.4 million ($1.1 million after tax or $0.02 per diluted share outstanding) in acquisition transaction and integration expenses, $2.0 million ($1.5 million after tax or $0.03 per diluted share outstanding) in tuxedo distribution closure costs and $3.2 million ($2.4 million after tax or $0.05 per diluted share outstanding) for non-cash asset impairment charges.  This compares to adjusted diluted earnings per share guidance given September 8, 2010 of $0.40 to $0.47.  

During the third quarter of 2010, the Company changed the inventory valuation method used by its K&G brand from lower of cost or market, as determined by the retail inventory method, to lower of cost or market using the weighted average cost method.  This change was done to bring all retail operations of the Company to a common valuation methodology platform.  All financial statements in this press release have been revised to reflect this change and are therefore comparable.  Prior year third quarter revised GAAP diluted earnings per share were $0.36, a decrease of $0.01 per share.

THIRD Quarter REVIEW

Dimensions and Alexandra Acquisitions

On August 6, 2010, the Company acquired Dimensions and certain assets of Alexandra, two leading providers of corporate clothing uniforms and workwear in the United Kingdom, for total cash consideration of approximately pounds Sterling 61 million (US$97.8 million).  The combined businesses are organized under a UK-based holding company of which Men's Wearhouse controls 86% and certain existing shareholders of Dimensions control 14%.

The financial results of the combined UK operations, excluding transaction and integration costs, were $0.03 accretive to the Company's third quarter diluted earnings per share.  Transaction and integration costs were $1.4 million ($1.1 million after tax or $0.02 per diluted share outstanding).  Total sales of the combined operations were US$51 million.  

Tuxedo Distribution Closures

In late August 2010, a decision was made by the Company to cease tuxedo distribution operations in November 2010 at four of the eleven facilities that we currently use for tuxedo distribution.  The operations at these four facilities will be assumed by other tuxedo distribution facilities in our system allowing us to more effectively manage our tuxedo rental operations.  In the third quarter, a charge of $2.0 million ($1.5 million after tax or $0.03 per diluted share outstanding) was incurred consisting primarily of severance payments and fixed asset write-offs.

The expected ongoing annual benefit, beginning in fiscal 2011, as a result of these closures will be a reduction in operating costs of approximately $4.0 million.

Review of Results

Total Company sales increased 19.1% for the quarter.  

    --  Retail segment net sales increased $36.3 million, or 7.9%, to $494.6
        million for the quarter ended October 30, 2010 as compared to the same
        prior year quarter. The increase was due mainly to a $20.1 million
        increase in clothing product revenues and a $13.6 million increase in
        tuxedo rental service revenue:
        o The increase of 9.6% in comparable store sales at Men's
          Wearhouse/Men's Wearhouse and Tux and 5.6% at Moores was due mainly to
          continued unit growth in our tuxedo rental services business,
          increased units per transaction and higher store traffic levels, which
          more than offset a decrease in the average transaction value. At K&G,
          the decrease of 0.2% in comparable store sales was due mainly to a
          decrease in the average transaction value.
        o Tuxedo rental service revenues as a percentage of total retail segment
          net sales increased from 21.3% in the third quarter of 2009 to 22.5%
          in the third quarter of 2010. In absolute dollars, tuxedo rental
          service revenues increased $13.6 million or 13.9% due mainly to a
          14.6% increase in paid units rented, offset partially by lower average
          rental rates in the U.S.
    --  Corporate apparel segment net sales increased $51.8 million to $55.5
        million for the quarter ended October 30, 2010 as compared to the same
        prior year quarter. The increase was due to our acquisitions of
        Dimensions and Alexandra in the UK on August 6, 2010.


Gross margin, as a percentage of total net sales, decreased 101 basis points from 43.7% to 42.7% due primarily to more aggressive promotional offerings in 2010 compared to 2009 and the increased mix of the lower margin corporate apparel business.  

    --  In the retail segment, total gross margin as a percentage of related
        sales increased from 43.9% in the third quarter of 2009 to 44.5% in the
        third quarter of 2010 primarily due to improved tuxedo rental margins
        and a decrease in occupancy costs. As a percentage of retail segment
        sales, occupancy costs decreased by 185 basis points from 15.8% to 13.9%
        primarily due to fewer open stores in 2010 and reduced depreciation
        following impairment charges taken in the fourth quarter of 2009. These
        improvements were partially offset by a decrease in clothing margin due
        primarily to more aggressive promotional offerings in the current year.
        As a percentage of related sales, clothing margin decreased 265 basis
        points from 56.0% to 53.4%.
    --  In the corporate apparel segment, total gross margin as a percentage of
        related sales increased from 22.6% in the third quarter of 2009 to 26.5%
        in the third quarter of 2010 due to our acquisitions of Dimensions and
        Alexandra in the UK on August 6, 2010.


Selling, general and administrative expenses were $200.6 million in the current year and increased 16.2% from the prior year's SG&A of $172.6 million.  During the current quarter, the Company incurred $1.4 million in acquisition transaction and integration costs, $2.0 million in tuxedo distribution closure costs and $3.2 million for non-cash asset impairment charges related to 40 Men's Wearhouse and Tux stores, some of which were partially impaired in the prior year.  Excluding these costs, third quarter SG&A expenses were $194.0 million or an increase of 12.4% to the prior year quarter.  SG&A related to the acquired UK operations resulted in a 6.6% increase.  The remaining 5.8% increase is primarily due to increased marketing costs and increased employee benefit costs.  As a percentage of total net sales, adjusted SG&A decreased 210 basis points from 37.4% to 35.3%.  

Operating income was $34.4 million.  Excluding $1.4 million in acquisition and integration costs, $2.0 million in tuxedo distribution closure costs and $3.2 million in non-cash asset impairment charges, operating income was $41.0 million or 7.5% of total net sales compared to operating income of $29.4 million or 6.4% of total net sales for the same period last year.

The effective income tax rate was 25.7% for the third quarter of 2010 and 34.5% for the third quarter of 2009.  The effective tax rate in 2010 was lower than the statutory U.S. federal rate of 35% due to the favorable tax rate effects from release of valuation allowances related to foreign tax credit carryforwards and recognition of previously unrecognized tax benefits and related accrued interest from expirations of statutes of limitations, offset partially by the effect of state income taxes.  

Cash and cash equivalent balances as of the end of the third quarter of 2010 were $197.8 million.

Total inventories of $509.4 million increased 6.9% from the prior year third quarter of $476.8 million.  Excluding the inventory related to the acquisitions of Dimensions and Alexandra in the UK, inventories decreased 6.6%.  

Current maturities of long-term debt were $45.6 million as of the end of the third quarter of 2010.

FOURTH QUARTER 2010 GUIDANCE

For the fourth quarter of the fiscal year, GAAP loss per share is expected to be in a range of $0.22 to $0.25.  Adjusted loss per share is expected to be in a range of $0.19 to $0.22.  Adjusted loss per share excludes acquisition transaction costs and integration expenses of $1.7 million ($1.1 million after tax or $0.02 per diluted share outstanding) and $1.0 million ($0.7 million after tax or $0.01 per diluted share outstanding) in tuxedo distribution closure costs consisting primarily of severance payments, fixed asset write-offs, facility remediation and labor costs associated with processing the inventory from the closed facilities.

SG&A costs in this year's fourth quarter will also include notable increases compared to the prior year's fourth quarter for both employee bonuses related to higher than planned full year financial performance and increased medical benefit costs due to a higher level of submitted claims.  We estimate these higher costs will increase this year's fourth quarter loss in a magnitude of the equivalent of 10 cents per share.

The financial results of the combined UK acquisitions, excluding acquisition transaction costs and integration expenses, are expected to be neutral to the Company's fourth quarter diluted earnings per share.




                              Historical Actual Guidance

                              4Q FY 2009        4Q FY 2010

                              (revised)

                                                + high teen's to low twenties
Total Sales                   -4.0%             digit range (1)

Comparable Store Sales (2)

MW                            -7.1%             + mid to high single digit

K&G                           -5.0%             + low single digits

Moores                        -6.6%             + low single digits

                                                + high teen's to low twenties
Gross Profit Growth Rate      -7.4%             digit range (3)

S G & A Expense Growth Rate   -4.3% (4)         + high teen's digits (5)

Effective Tax Rate            45.55%            41.00% (6)

Shares Outstanding (millions) 52.297            52.998

GAAP Loss Per Share           $0.36             $0.22 to $0.25

Adjusted Loss Per Share       $0.11             $0.19 to $0.22 (5)

Foreign Exchange Conversion
(avg.)

US Dollar to GBP              n/a               1.590

US Dollar to Canadian Dollar  0.95              0.98







  1. Includes US$51 million to US$53 million of sales from acquired operations
     of Dimensions and Alexandra in the 4Q of FY 2010.
  2. Includes an assumed increase in tuxedo rental revenues of + low double
     digits in the 4Q of FY 2010 compared to the prior year quarter decrease of
     0.6%.
  3. Occupancy costs are expected to decrease in the low single digit range in
     the 4Q of FY 2010 from the prior year quarter.
  4. Excludes $8.8 million pretax gain from an eminent domain sale of a
     distribution center in 4Q 2008. Also excludes $1.8 million and $19.5
     million in impairment charges in the 4Q 2008 and 4Q 2009, respectively.
  5. Excludes acquisition transaction and integration costs and costs associated
     with the closure of four tuxedo distribution centers in the 4Q of FY 2010.
     Also excludes $19.5 million in impairment charges in the 4Q of FY 2009. In
     the 4Q of FY 2010, SG&A expense is expected to increase a) in the high
     single digit range related to the Company's acquired UK operations, b) in
     the mid single digit range related to employee medical costs from a higher
     level of claims and employee bonus costs due to exceeding full year
     financial targets and c) in the high single digit range primarily due to
     increased marketing and payroll related costs.
  6. The higher effective tax rate in 4Q of FY 2009 is primarily due to a true
     up the Company's annual tax provision as a result of the non-cash
     impairment charge taken in 4Q of FY 2009. The estimated impact on diluted
     earnings per share from this true up in 4Q of FY 2009 was a benefit of
     $0.04 per share in the prior year.


UPDATED CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 p.m. Eastern time on Tuesday, December 7, 2010, 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 2010.    

To access the conference call, dial 480-629-9725. 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 14, 2010 by calling 303-590-3030 and entering the access code of 4386437#, or a webcast archive will be available free on the website for approximately 90 days.


STORE INFORMATION

                         October 30, 2010  October 31, 2009  January 30, 2010



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



Men's Wearhouse          586       3,319.3 581       3,279.8 581       3,284.4



Men's Wearhouse and Tux  408       561.0   469       639.9   454       623.4



Moores, Clothing for Men 117       737.1   117       734.6   117       734.6



K&G (a)                  102       2,391.8 107       2,475.6 107       2,475.6



Total                    1,213     7,009.2 1,274     7,129.9 1,259     7,118.0

(a) 91, 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 1,213 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.  Additionally, Men's Wearhouse operates a global corporate apparel and workwear group consisting of TwinHill in the United States and Dimensions and Alexandra in the United Kingdom.  

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, changes in foreign currency rates and other factors described in the Company's annual report on Form 10-K for the fiscal year ended January 30, 2010, subsequent Forms 10-Q.

For additional information on Men's Wearhouse, please visit the Company's website at www.menswearhouse.com.   The website for Dimensions is www.dimensions.co.uk and the website for Alexandra is www.alexandra.co.uk.




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

         Ken Dennard, DRG&L (713) 529-6600








THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

FOR THE THREE MONTHS ENDED

October 30, 2010 AND October 31, 2009

(In thousands, except per share data)



                     Three Months Ended                 Variance

                              % of             % of                      Basis

                     2010     Sales   2009     Sales    Dollar  %        Points

                              (as adjusted) (a)

Net sales:

Clothing product     $405,784 73.77%  $333,882 72.27%   $71,902 21.54%   1.50

Tuxedo rental
services             111,297  20.23%  97,702   21.15%   13,595  13.91%   (0.91)

Alteration and other
services             33,022   6.00%   30,431   6.59%    2,591   8.51%    (0.58)

Total net sales      550,103  100.00% 462,015  100.00%  88,088  19.07%   0.00



Total cost of sales  315,104  57.28%  259,974  56.27%   55,130  21.21%   1.01



Gross margin (b)     234,999  42.72%  202,041  43.73%   32,958  16.31%   (1.01)



Selling, general and
administrative
expenses             200,588  36.46%  172,595  37.36%   27,993  16.22%   (0.89)



Operating income     34,411   6.26%   29,446   6.37%    4,965   16.86%   (0.12)



Net interest         (274)    (0.05%) (19)     0.00%    (255)   1342.11% (0.05)



Earnings before
income taxes         34,137   6.21%   29,427   6.37%    4,710   16.01%   (0.16)



Provision for income
taxes                8,789    1.60%   10,141   2.19%    (1,352) (13.33%) (0.60)



Net earnings
including
noncontrolling
interest             25,348   4.61%   19,286   4.17%    6,062   31.43%   0.43



Less: Net earnings
attributable to
noncontrolling
interest             89       0.02%   -        0.00%    89      100.00%  0.02



Net earnings
attributable to
common shareholders  $ 25,259 4.59%   $ 19,286 4.17%    $ 5,973 30.97%   0.42



Net earnings per
diluted common share
attributable to
common shareholders
(c)                  $ 0.47           $ 0.36



Weighted average
diluted common
shares outstanding:  52,895           52,442



(a) Results have been adjusted for the change in inventory valuation method
used by our K&G brand from the retail inventory method to the weighted average
cost method during the third quarter of fiscal 2010. The cumulative effect of
this change in accounting principle was recorded retrospectively as of February
1, 2009.








(b) 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       $ 187,019 53.40%   $ 185,057 56.05%    $ 1,962  1.06%     (2.65)

Tuxedo
margin       93,813    84.29%   81,205    83.11%    12,608   15.53%    1.18

Alteration
and other
services
margin       8,424     25.51%   7,335     24.10%    1,089    14.85%    1.41

Occupancy
costs        (68,978)  (13.95%) (72,394)  (15.80%)  3,416    4.72%     1.85

Retail
segment
margin       220,278   44.54%   201,203   43.90%    19,075   9.48%     0.64

Corporate
apparel
segment
margin       14,721    26.51%   838       22.58%    13,883   1,656.68% 3.93

Gross margin $ 234,999 42.72%   $ 202,041 43.73%    $ 32,958 16.31%    (1.01)



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








THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

FOR THE NINE MONTHS ENDED

October 30, 2010 AND October 31, 2009

(In thousands, except per share data)



                 Nine Months Ended                      Variance

                            % of               % of                      Basis

                 2010       Sales   2009       Sales    Dollar   %       Points

                            (as adjusted) (a)

Net sales:

Clothing product $1,136,383 72.82%  $1,057,246 72.80%   $79,137  7.49%   0.02

Tuxedo rental
services         325,913    20.88%  298,688    20.57%   27,225   9.11%   0.32

Alteration and
other services   98,262     6.30%   96,423     6.64%    1,839    1.91%   (0.34)

Total net sales  1,560,558  100.00% 1,452,357  100.00%  108,201  7.45%   0.00



Total cost of
sales            864,284    55.38%  822,989    56.67%   41,295   5.02%   (1.28)



Gross margin (b) 696,274    44.62%  629,368    43.33%   66,906   10.63%  1.28



Selling, general
and
administrative
expenses         571,406    36.62%  525,704    36.20%   45,702   8.69%   0.42



Operating income 124,868    8.00%   103,664    7.14%    21,204   20.45%  0.86



Net interest     (774)      (0.05%) (179)      (0.01%)  (595)    332.40% (0.04)

Earnings before
income taxes     124,094    7.95%   103,485    7.13%    20,609   19.91%  0.83



Provision for
income taxes     42,222     2.71%   38,517     2.65%    3,705    9.62%   0.05



Net earnings
including
noncontrolling
interest         81,872     5.25%   64,968     4.47%    16,904   26.02%  0.77



Less: Net
earnings
attributable to
noncontrolling
interest         89         0.01%   -          0.00%    89       100.00% 0.01



Net earnings
attributable to
common
shareholders     $ 81,783   5.24%   $ 64,968   4.47%    $ 16,815 25.88%  0.77



Net earnings per
diluted common
share
attributable to
common
shareholders (c) $ 1.54             $ 1.23



Weighted average
diluted common
shares
outstanding:     52,776             52,218



(a) Results have been adjusted for the change in inventory valuation method
used by our K&G brand from the retail inventory method to the weighted average
cost method during the third quarter of fiscal 2010. The cumulative effect of
this change in accounting principle was recorded retrospectively as of February
1, 2009.






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

             Nine Months Ended                      Variance

             2010      % of     2009      % of                       Basis

                       Related            Related
                       Sales              Sales     Dollar   %       Points

Clothing
margin       $ 587,626 54.79%   $ 570,887 54.53%    $ 16,739 2.93%   0.25

Tuxedo
margin       275,067   84.40%   248,684   83.26%    26,383   10.61%  1.14

Alteration
and other
services
margin       25,154    25.60%   25,547    26.49%    (393)    (1.54%) (0.90)

Occupancy
costs        (208,472) (13.93%) (218,028) (15.12%)  9,556    4.38%   1.19

Retail
segment
margin       679,375   45.39%   $ 627,090 43.49%    52,285   8.34%   1.90

Corporate
apparel
segment
margin       16,899    26.47%   2,278     21.87%    14,621   641.83% 4.60

Gross margin $ 696,274 44.62%   $ 629,368 43.33%    $ 66,906 10.63%  1.28



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








THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Inthousands)

(Unaudited)

                                                October 30,  October 31,

                                                2010         2009

                                                             (as adjusted) (a)

ASSETS

Current assets:

 Cash and cash equivalents                      $ 197,843    $ 198,538

 Accounts receivable, net                       65,069       17,304

 Inventories                                    509,422      476,760

 Other current assets                           62,830       47,744



 Total current assets                           835,164      740,346

Property and equipment, net                     333,007      370,191

Tuxedo rental product, net                      86,121       100,653

Goodwill                                        90,580       59,111

Intangible assets, net                          38,678       5,279

Other assets, net                               21,831       7,376



 Total assets                                   $ 1,405,381  $ 1,282,956



LIABILITIES AND EQUITY

Current liabilities:

 Accounts payable                               $ 145,138    $ 121,374

 Accrued expenses and other current liabilities 130,550      106,082

 Income taxes payable                           12,294       24,743

 Current maturities of long-term debt           45,584       -



 Total current liabilities                      333,566      252,199

Long-term debt                                  -            42,985

Deferred taxes and other liabilities            72,664       63,087



 Total liabilities                              406,230      358,271



Equity:

 Preferred stock                                -            -

 Common stock                                   709          704

 Capital in excess of par                       336,942      323,864

 Retained earnings                              1,023,467    979,540

 Accumulated other comprehensive income         37,651       33,203

 Treasury stock, at cost                        (412,761)    (412,626)



 Total equity attributable to common
 shareholders                                   986,008      924,685



 Noncontrolling interest                        13,143       -



 Total equity                                   999,151      924,685



 Total liabilities and equity                   $ 1,405,381  $ 1,282,956



(a) Results have been adjusted for the change in inventory valuation method
used by our K&G brand from the retail inventory method to the weighted average
cost method during the third quarter of fiscal 2010. The cumulative effect of
this change in accounting principle was recorded retrospectively as of
February 1, 2009.








THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

FOR THE NINE MONTHS ENDED

October 30, 2010 AND October 31, 2009

(In thousands)



                                                Nine Months Ended

                                                2010       2009

                                                           (as adjusted) (a)

CASH FLOWS FROM OPERATING ACTIVITIES:



 Net earnings including noncontrolling interest $ 81,872   $ 64,968

 Non-cash adjustments to net earnings:

 Depreciation and amortization                  57,210     64,879

 Tuxedo rental product amortization             31,732     33,149

 Other                                          11,284     3,292

 Changes in assets and liabilities              (16,216)   (3,888)



 Net cash provided by operating activities      165,882    162,400



CASH FLOWS FROM INVESTING ACTIVITIES:

 Capital expenditures                           (43,835)   (44,466)

 Acquisition of businesses, net of cash         (97,786)   -

 Proceeds from sales of available-for-sale
 investments                                    -          19,410

 Proceeds from sales of property and equipment  76         -



 Net cash used in investing activities          (141,545)  (25,056)



CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from issuance of common stock         2,503      3,032

 Payments on revolving credit facility          -          (25,000)

 Cash dividends paid                            (14,318)   (11,029)

 Tax payments related to vested deferred stock
 units                                          (2,748)    (1,634)

 Excess tax benefits from share-based plans     952        208

 Purchase of treasury stock                     (144)      (90)



 Net cash used in financing activities          (13,755)   (34,513)



 Effect of exchange rate changes                1,243      8,295



INCREASE IN CASH AND CASH EQUIVALENTS           11,825     111,126



 Balance at beginning of period                 186,018    87,412

 Balance at end of period                       $ 197,843  $ 198,538



(a) Results have been adjusted for the change in inventory valuation method
used by our K&G brand from the retail inventory method to the weighted
average cost method during the third quarter of fiscal 2010. The cumulative
effect of this change in accounting principle was recorded retrospectively
as of February 1, 2009.







SOURCE Men's Wearhouse