Exhibit 99.1
     
The Men’s Wearhouse, Inc.


News Release
  (mens wearhouse logo)
 
 
 
 
 
 
 
 
  For Immediate Release
MEN’S WEARHOUSE REPORTS
FISCAL 2009 FIRST QUARTER RESULTS
  Q1 2009 GAAP diluted EPS was $0.10 compared with Q1 2008 GAAP diluted EPS of $0.19 and adjusted diluted EPS of $0.20
  Company provides guidance for the second quarter of fiscal 2009
  Company moves its scheduled Conference call to 5:00 pm Eastern Thursday, June 11, 2009
HOUSTON — June 8, 2009 — The Men’s Wearhouse (NYSE: MW) today announced its consolidated financial results for the first quarter ended May 2, 2009.
First Quarter Sales Summary — Fiscal 2009
                                         
                            Comparable Store Sales
    U.S. dollars, in millions   Total Sales   Change %
    Current Year   Prior Year   Change %   Current Year   Prior Year
 
Total Company
  $ 464.1     $ 491.1       -5.5 %                
MW
  $ 310.9 (a)   $ 327.9 (a)     -5.2 %     -7.0 %(b)     -6.4 %(b)
K&G
  $ 104.5     $ 100.6       3.9 %     2.3 %     -14.1 %
United States
  $ 425.0     $ 441.3       -3.7 %     -4.7 %     -8.5 %
 
Moores
  $ 39.1     $ 49.8       -21.5 %     -4.3 %(c)     -4.2 %(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 $0.10 for the first quarter ended May 2, 2009. This compares to diluted earnings per common share guidance given March 11, 2009 of break even to a mid single digit loss range. Prior year first quarter GAAP diluted earnings per common share were $0.19 and adjusted diluted earnings per common share were $0.20 excluding costs incurred in connection with the closure of the Canadian based manufacturing facility operated by the Company’s subsidiary, Golden Brand.

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FIRST QUARTER REVIEW
    Total Company sales decreased 5.5% for the quarter.
    Clothing product sales, representing 77.4% of fiscal first quarter 2009 total net sales, decreased 7.6% due to decreases in the Company’s comparable store sales primarily driven by a reduction in store traffic levels.
 
    Tuxedo rental sales, representing 15.4% of fiscal first quarter 2009 total net sales, increased 1.7%.
    Gross margin before occupancy costs, as a percentage of total net sales, decreased 196 basis points from 58.10% to 56.14%. Clothing product margins, as a percentage of related sales, decreased 327 basis points but were modestly offset by the impact of the higher margin tuxedo rental revenues that increased as a mix of total sales from 14.3% to 15.4%.
 
    Occupancy costs increased, as a percentage of total net sales, by 65 basis points from 14.98% to 15.63% primarily due to the deleveraging effect of reduced comparable store sales. On an absolute dollar basis, occupancy costs decreased 1.3% from $73.6 million in the prior year to $72.6 million.
 
    Selling, general, and administrative expenses decreased 8.9% from the prior year quarter of $196.7 million to $179.2 million due primarily to cost-cutting measures and operational efficiencies. As a percentage of total net sales, SG&A decreased 143 basis points from 40.04% to 38.61%. SG&A excluding advertising decreased 10.7% from the prior year quarter.
 
    Operating income was $8.8 million or 1.9% of total net sales compared to $15.1 million or 3.1% of total net sales for the same period last year. Net income was $5.3 million or 1.1% of total net sales compared to $9.9 million or 2.0% of total net sales for the same period last year.
 
    The effective tax rate for first quarter was 39.0%.
FISCAL 2009 GUIDANCE
Due primarily to the lack of forward visibility as to macro economic conditions, the Company has implemented modifications to its forward guidance practices beginning with fiscal 2009. The Company previously provided specific financial related guidance for the first half of the current fiscal year. This guidance is being updated below. The Company has also provided below additional guidance around certain elements which management believes will influence the Company’s annual results.
For the second quarter, the Company expects GAAP diluted earnings per common share to be in a range of $0.56 to $0.60.

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The Company anticipates comparable store sales of its retail apparel business to decline in a range of 4% to 6% and comparable store sales of its tuxedo rental revenues to increase in a range of 3% to 5% for the second quarter. Total Company sales are expected to decrease in the 3% to 5% range for the second quarter.
Gross margins before occupancy costs for the second quarter are expected to be below the prior year as the Company continues a more aggressive posture in strengthening its value proposition for customers. Occupancy costs are expected to be flat for the second quarter in absolute dollar terms; however, as a percentage of revenues, these costs will deleverage from the prior year rate.
The Company has implemented a variety of cost containment and operational changes that have resulted in immediate cost reductions for fiscal 2009. These actions are expected to drive second quarter selling, general and administrative expenses down by 6% to 8% from the prior year, excluding advertising costs and $7.3 million in prior year costs associated with the closing of Golden Brand. This expected rate of reduction will enable the Company to realize pre-advertising expense leverage for the second quarter.
Net interest expense is expected to decline for the second quarter and full year due to positive increases in free cash flow.
This guidance includes an estimated annual effective tax rate of approximately 37.2%; however, the Company expects continuing variability in quarterly tax rates.
Fully diluted common shares outstanding of 52.6 million are estimated for the year. The Company’s share repurchase program will be influenced by several factors including business and market conditions.
The Company anticipates opening new stores throughout the year. Currently the aggregate number of new openings is now expected to be up to eight; however, the Company remains flexible to take advantage of real estate opportunities that may arise.
Capital expenditures for the full year are targeted in a range of $50.0 million to $55.0 million and depreciation and amortization expense is now estimated at approximately $87.0 million.
UPDATED CONFERENCE CALL AND WEBCAST INFORMATION
Due to the fact that Men’s Wearhouse has made a bid for Filene’s Basement in Federal Bankruptcy Court in Wilmington, Delaware and is expecting a ruling on the matter on Wednesday, June 10, 2009, the Company has moved its fiscal first quarter 2009 conference call and real time web cast to Thursday, June 11, 2009, at 5:00 pm Eastern time.
To access the conference call, dial 480-629-9722. 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 18, 2009 by calling 303-590-3030 and entering the access code of 4094764#, or a webcast archive will be available free on the website for approximately 90 days.

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STORE INFORMATION
                                                 
    May 2, 2009   May 3, 2008   January 31, 2009
    Number   Sq. Ft.   Number   Sq. Ft.   Number   Sq. Ft.
    of Stores   (000’s)   of Stores   (000’s)   of Stores   (000’s)
 
 
                                               
Men’s Wearhouse
    581       3,276.7       571       3,203.1       580       3,263.1  
 
                                               
Men’s Wearhouse and Tux
    478       651.9       492       662.0       489       665.0  
 
                                               
Moores, Clothing for Men
    117       732.7       116       721.2       117       729.3  
 
                                               
K&G (a)
    108       2,488.4       106       2,451.2       108       2,493.4  
 
 
                                               
Total
    1,284       7,149.7       1,285       7,037.5       1,294       7,150.8  
 
(a)   94, 90 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 1,284 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.
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

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

(Unaudited)
FOR THE THREE MONTHS ENDED
May 2, 2009 AND May 3, 2008

(In thousands, except per share data)
                                 
    Three Months Ended  
            % of             % of  
    2009     Sales     2008     Sales  
     
 
                               
Net sales:
                               
Clothing product
  $ 359,062       77.36 %   $ 388,491       79.11 %
Tuxedo rental services
    71,419       15.39 %     70,194       14.29 %
Alteration and other services
    33,653       7.25 %     32,411       6.60 %
     
Total net sales
    464,134       100.00 %     491,096       100.00 %
 
                               
Cost of sales:
                               
Clothing product including buying and distribution costs
    167,457       36.08 %     168,491       34.31 %
Tuxedo rental services
    12,032       2.59 %     12,565       2.56 %
Alteration and other services
    24,090       5.19 %     24,731       5.04 %
Occupancy costs
    72,566       15.63 %     73,554       14.98 %
     
Total cost of sales
    276,145       59.50 %     279,341       56.88 %
 
                               
Gross margin
    187,989       40.50 %     211,755       43.12 %
 
                               
Selling, general and administrative expenses
    179,213       38.61 %     196,650       40.04 %
     
 
                               
Operating income
    8,776       1.89 %     15,105       3.08 %
 
                               
Interest income
    258       0.06 %     821       0.17 %
Interest expense
    (418 )     (0.09 )%     (1,599 )     (0.33 )%
     
 
                               
Earnings before income taxes
    8,616       1.86 %     14,327       2.92 %
 
                               
Provision for income taxes
    3,360       0.72 %     4,384       0.89 %
     
 
                               
Net earnings
  $ 5,256       1.13 %   $ 9,943       2.02 %
     
 
                               
Net earnings per common share (a):
                               
Basic
  $ 0.10             $ 0.19          
 
                           
Diluted
  $ 0.10             $ 0.19          
 
                           
 
                               
Weighted average common shares outstanding:
                               
Basic
    51,895               51,470          
 
                           
Diluted
    51,955               51,864          
 
                           
 
(a)   Calculated based on net earnings less net earnings allocated to participating securities of $51 thousand for the quarter ended May 2, 2009.

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(MEN'S WEARHOUSE LOGO)
  THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)
(Unaudited)
                 
    May 2,     May 3,  
    2009     2008  
ASSETS
               
 
               
Current assets:
               
Cash and cash equivalents
  $ 107,538     $ 76,660  
Short-term investments
    17,707       9,668  
Accounts receivable, net
    24,858       26,858  
Inventories
    448,018       488,137  
Other current assets
    59,752       58,007  
 
           
 
               
Total current assets
    657,873       659,330  
Property and equipment, net
    378,510       406,944  
Tuxedo rental product, net
    120,083       92,405  
Goodwill
    57,622       62,481  
Other assets, net
    12,439       26,182  
 
           
 
               
Total assets
  $ 1,226,527     $ 1,247,342  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Accounts payable
  $ 142,984     $ 121,193  
Accrued expenses and other current liabilities
    127,868       131,436  
Income taxes payable
    3,461        
 
           
 
               
Total current liabilities
  $ 274,313     $ 252,629  
Long-term debt
    39,213       106,870  
Deferred taxes and other liabilities
    63,955       67,498  
 
           
 
               
Total liabilities
    377,481       426,997  
 
           
 
               
Shareholders’ equity:
               
Preferred stock
           
Common stock
    702       697  
Capital in excess of par
    316,034       305,601  
Retained earnings
    925,881       886,386  
Accumulated other comprehensive income
    19,055       40,198  
 
           
Total
    1,261,672       1,232,882  
 
               
Treasury stock, at cost
    (412,626 )     (412,537 )
 
           
 
               
Total shareholders’ equity
    849,046       820,345  
 
           
 
               
Total liabilities and equity
  $ 1,226,527     $ 1,247,342  
 
           

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

(Unaudited)
FOR THE THREE MONTHS ENDED
May 2, 2009 AND May 3, 2008

(In thousands)
                 
    Three Months Ended  
    2009     2008  
 
               
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net earnings
  $ 5,256     $ 9,943  
Non-cash adjustments to net earnings:
               
Depreciation and amortization
    22,222       23,698  
Tuxedo rental product amortization
    7,644       8,066  
Other
    7,887       2,126  
Changes in assets and liabilities
    20,293       (36,577 )
 
           
 
               
Net cash provided by operating activities
    63,302       7,256  
 
           
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (15,035 )     (29,860 )
Proceeds from sales of available-for-sale investments
          50,254  
 
           
 
               
Net cash provided by (used in) investing activities
    (15,035 )     20,394  
 
           
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Cash dividends paid
    (3,664 )     (3,632 )
Proceeds from revolving credit facility
          100,600  
Payments on revolving credit facility
    (25,000 )     (83,975 )
Proceeds from issuance of common stock
    506       609  
Purchase of treasury stock
    (90 )     (156 )
Other financing activities
    (1,607 )     (1,336 )
 
           
 
               
Net cash provided by (used in) financing activities
    (29,855 )     12,110  
 
           
 
               
Effect of exchange rate changes
    1,714       (2,546 )
 
           
 
               
INCREASE IN CASH AND CASH EQUIVALENTS
    20,126       37,214  
Balance at beginning of period
    87,412       39,446  
 
           
Balance at end of period
  $ 107,538     $ 76,660  
 
           

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