Exhibit 99.1
     
The Men’s Wearhouse, Inc.

News Release
  (MEN'S WEARHOUSE LOGO)
 
   
 
  For Immediate Release
MEN’S WEARHOUSE REPORTS
FISCAL 2009 SECOND QUARTER RESULTS
  Q2 2009 GAAP diluted EPS was $0.75 compared with Q2 2008 GAAP diluted EPS of $0.63 and adjusted diluted EPS of $0.72
 
  Company provides guidance for the third quarter of fiscal 2009
 
  Conference call at 5:00 pm Eastern today
HOUSTON — September 9, 2009 — The Men’s Wearhouse (NYSE: MW) today announced its consolidated financial results for the second quarter ended August 1, 2009.
Second 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
  $ 526.2     $ 545.3       -3.5 %                
MW
  $ 359.0 (a)   $ 362.7 (a)     -1.0 %     - 2.0 %(b)     - 7.8 %(b)
K&G
  $ 93.6     $ 96.4       - 2.9 %     -3.6 %     - 8.9 %
United States
  $ 461.0     $ 470.0       - 1.9 %     -2.4 %     -8.0 %
Moores
  $ 65.2     $ 75.3       -13.3 %     - 3.4 %(c)     - 2.8 %(c)
Year-To-Date 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
  $ 990.3     $ 1,036.4       -4.4 %                
MW
  $ 670.0 (a)   $ 690.6 (a)     -3.0 %     - 4.4 %(b)     - 7.2 %(b)
K&G
  $ 198.1     $ 197.0       + 0.6 %     -0.6 %     -11.6 %
United States
  $ 886.0     $ 911.3       -2.8 %     -3.5 %     -8.2 %
Moores
  $ 104.3     $ 125.1       -16.6 %     - 3.7 %(c)     - 3.3 %(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.

Page 1


 

Diluted earnings per common share were $0.75 for the second quarter ended August 1, 2009. This compares to diluted earnings per common share guidance given June 8, 2009 of $0.56 to $0.60. Prior year second quarter GAAP diluted earnings per common share were $0.63 and adjusted diluted earnings per common share were $0.72 excluding $7.3 million (pre tax) or $0.09 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.
SECOND QUARTER REVIEW
    Total Company sales decreased 3.5% for the quarter.
    Clothing product sales, representing 69.2% of fiscal second quarter 2009 total net sales, decreased 5.6% due to decreases in the Company’s comparable store sales primarily driven by a reduction in store traffic levels.
 
    Tuxedo rental sales, representing 24.6% of fiscal second quarter 2009 total net sales, increased 1.7%.
    Gross margin before occupancy costs, as a percentage of total net sales, decreased 86 basis points from 59.9% to 59.1%. Clothing product margins, as a percentage of related sales, decreased 205 basis points due to increased promotional activities and were modestly offset by higher alteration service margins and the impact of the higher margin tuxedo rental revenues that increased as a mix of total sales from 23.4% to 24.6%.
 
    Occupancy costs increased, as a percentage of total net sales, by 36 basis points from 13.5% to 13.9% due to the deleveraging effect of reduced comparable store sales. On an absolute dollar basis, occupancy costs decreased 0.9% from $73.8 million in the prior year to $73.1 million.
 
    Selling, general, and administrative expenses were $173.9 million in the current year and $198.9 million in the prior year. During the quarter, the Company entered into an agreement with a third party vendor who assumed our unredeemed gift card liability, which resulted in the recognition of other income from gift card breakage of $3.2 million ($2.0 million after tax or $0.04 per diluted share outstanding). Excluding other income from gift card breakage, adjusted SG&A expenses of $177.1 million decreased 7.6% from the prior year’s adjusted SG&A of $191.6 million which excludes $7.3 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 148 basis points from 35.1% to 33.7%. Adjusted SG&A excluding advertising decreased 9.5% from the prior year quarter.

Page 2


 

    Operating income was $63.9 million or 12.1% of total net sales compared to adjusted operating income of $61.5 million or 11.3% of total net sales for the same period last year which excludes $7.3 million in Golden Brand closure costs. Net income was $39.5 million or 7.5% of total net sales compared to adjusted net income of $37.3 million or 6.8% of total net sales for the same period last year which excludes $4.5 million in Golden Brand closure costs (net of tax).
 
    Cash and cash equivalent balances plus amounts held in short-term investments as of the end of the second quarter of 2009 were $163.9 million, an increase of $44.7 million over the same period last year.
 
    Total inventories of $430.8 million declined 5.8% from the prior year second quarter of $457.2 million.
 
    Long term debt as of the end of the second quarter of 2009 was $43.2 million, a decrease of $41.1 million from the same period last year.
THIRD QUARTER FISCAL 2009 GUIDANCE
For the third quarter, the Company expects GAAP diluted earnings per common share to be in a range of $0.27 to $0.30.
The Company anticipates comparable store sales of its retail apparel business to decline in a range of 2% to 3% and comparable store sales of its tuxedo rental revenues to increase in a range of 1% to 2% for the third quarter. Total Company sales are expected to be flat to a decrease of 2% for the third quarter.
Gross profit before occupancy costs for the third quarter is expected to decline in the low single digit range from 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 third quarter in absolute dollar terms.
Selling, general and administrative expenses for the third quarter are expected to decline by 4% to 5% from the prior year, excluding advertising costs and $1.8 million in prior year costs associated with the closing of Golden Brand.
This guidance includes an estimated effective tax rate of approximately 33.0% for the third quarter. The Company’s effective tax rate for the fiscal year is now estimated at 36.1%.
Weighted average fully diluted common shares outstanding are estimated to be 52.285 million for the third quarter and 52.195 million for the full year.

Page 3


 

UPDATED CONFERENCE CALL AND WEBCAST INFORMATION
At 5:00 pm Eastern time on Wednesday, September 9, 2009, company management will host a conference call and real time web cast to review the fiscal second quarter and its outlook for the third quarter of fiscal 2009.
To access the conference call, dial 480-629-9772. 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 September 16, 2009 by calling 303-590-3030 and entering the access code of 4143979#, or a webcast archive will be available free on the website for approximately 90 days.
STORE INFORMATION
                                                 
    August 1, 2009   August 2, 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
    580       3,274.1       572       3,213.9       580       3,263.1  
Men’s Wearhouse and Tux
    473       644.4       493       668.6       489       665.0  
Moores, Clothing for Men
    117       732.7       116       721.2       117       729.3  
K&G (a)
    108       2,488.4       106       2,442.6       108       2,493.4  
 
                                               
Total
    1,278       7,139.6       1,287       7,046.3       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 1,278 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 Form 10-Q for the quarter ended May 2, 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

Page 4


 

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

(Unaudited)
FOR THE THREE MONTHS ENDED
August 1, 2009 AND August 2, 2008

(In thousands, except per share data)
                                                         
    Three Months Ended     Variance  
            % of             % of                     Basis  
    2009     Sales     2008     Sales     Dollar     %     Points  
         
Net sales:
                                                       
Clothing product
  $ 364,302       69.23 %   $ 386,108       70.81 %   $ (21,806 )     (5.65 %)     (1.58 )
Tuxedo rental services
    129,567       24.62 %     127,453       23.37 %     2,114       1.66 %     1.25  
Alteration and other services
    32,339       6.15 %     31,728       5.82 %     611       1.93 %     0.33  
         
Total net sales
    526,208       100.00 %     545,289       100.00 %     (19,081 )     (3.50 %)     0.00  
 
                                                       
Total cost of sales
    288,420       54.81 %     292,246       53.59 %     (3,826 )     (1.31 %)     1.22  
         
 
                                                       
Gross margin (a)
    237,788       45.19 %     253,043       46.41 %     (15,255 )     (6.03 %)     (1.22 )
 
                                                       
Selling, general and administrative expenses
    173,896       33.05 %     198,886       36.47 %     (24,990 )     (12.56 %)     (3.43 )
         
 
                                                       
Operating income
    63,892       12.14 %     54,157       9.93 %     9,735       17.98 %     2.21  
 
                                                       
Net interest
          0.00 %     (346 )     0.06 %     (346 )     (100.00 %)     (0.06 )
         
 
                                                       
Earnings before income taxes
    63,892       12.14 %     53,811       9.87 %     10,081       18.73 %     2.27  
 
                                                       
Provision for income taxes
    24,407       4.64 %     20,986       3.85 %     3,421       16.30 %     0.79  
         
 
                                                       
Net earnings
  $ 39,485       7.50 %   $ 32,825       6.02 %   $ 6,660       20.29 %     1.48  
         
 
                                                       
Net earnings per diluted common share (b)
  $ 0.75             $ 0.63                                  
 
                                                   
 
                                                       
Weighted average diluted common shares outstanding:
    52,255               51,862                                  
 
                                                   
 
(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
  $ 194,115       53.28 %   $ 213,634       55.33 %   $ (19,519 )     (9.14 %)     (2.05 )
Tuxedo margin
    108,092       83.43 %     106,651       83.68 %     1,441       1.35 %     (0.25 )
Alteration and other services margin
    8,649       26.74 %     6,524       20.56 %     2,125       32.57 %     6.18  
Occupancy costs
    (73,068 )     (13.89 %)     (73,766 )     (13.53 %)     698       0.95 %     (0.36 )
         
Gross margin
  $ 237,788       45.19 %   $ 253,043       46.41 %   $ (15,255 )     (6.03 %)     (1.22 )
         
 
(b)   Calculated based on net earnings less net earnings allocated to participating securities of $388 thousand for the quarter ended August 1, 2009.

Page 5


 

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

(Unaudited)
FOR THE SIX MONTHS ENDED
August 1, 2009 AND August 2, 2008

(In thousands, except per share data)
                                                         
    Six Months Ended     Variance  
            % of             % of                     Basis  
    2009     Sales     2008     Sales     Dollar     %     Points  
Net sales:
                                                       
Clothing product
  $ 723,364       73.04 %   $ 774,599       74.74 %   $ (51,235 )     (6.61 %)     (1.70 )
Tuxedo rental services
    200,986       20.29 %     197,647       19.07 %     3,339       1.69 %     1.22  
Alteration and other services
    65,992       6.66 %     64,139       6.19 %     1,853       2.89 %     0.47  
         
Total net sales
    990,342       100.00 %     1,036,385       100.00 %     (46,043 )     (4.44 %)     0.00  
 
                                                       
Total cost of sales
    564,565       57.01 %     571,587       55.15 %     (7,022 )     (1.23 %)     1.86  
         
 
                                                       
 
                                                       
Gross margin (a)
    425,777       42.99 %     464,798       44.85 %     (39,021 )     (8.40 %)     (1.86 )
 
                                                       
Selling, general and administrative expenses
    353,109       35.66 %     395,536       38.16 %     (42,427 )     (10.73 %)     (2.51 )
         
 
                                                       
Operating income
    72,668       7.34 %     69,262       6.68 %     3,406       4.92 %     0.65  
 
                                                       
Net interest
    (160 )     0.02 %     (1,124 )     0.11 %     (964 )     (85.77 %)     (0.09 )
         
 
                                                       
Earnings before income taxes
    72,508       7.32 %     68,138       6.57 %     4,370       6.41 %     0.75  
 
                                                       
Provision for income taxes
    27,767       2.80 %     25,370       2.45 %     2,397       9.45 %     0.36  
         
 
                                                       
Net earnings
  $ 44,741       4.52 %   $ 42,768       4.13 %   $ 1,973       4.61 %     0.39  
         
 
                                                       
Net earnings per diluted common share (b)
  $ 0.85             $ 0.82                                  
 
                                                   
 
                                                       
Weighted average diluted common shares outstanding:
    52,105               51,863                                  
 
                                                   
 
(a)   Gross margin as a percentage of related sales:
                                                         
    Six Months Ended   Variance
            % of           % of    
            Related           Related                   Basis
    2009   Sales   2008   Sales   Dollar   %   Points
         
Clothing margin
  $ 385,720       53.32 %   $ 433,634       55.98 %   $ (47,914 )     (11.05 %)     (2.66 )
Tuxedo margin
    167,479       83.33 %     164,280       83.12 %     3,199       1.95 %     0.21  
Alteration and other services margin
    18,212       27.60 %     14,204       22.15 %     4,008       28.22 %     5.45  
Occupancy costs
    (145,634 )     (14.71 %)     (147,320 )     (14.21 %)     1,686       1.14 %     (0.49 )
         
Gross margin
  $ 425,777       42.99 %   $ 464,798       44.85 %   $ (39,021 )     (8.40 %)     (1.86 )
         
 
(b)   Calculated based on net earnings less net earnings allocated to participating securities of $442 thousand for the six months ended August 1, 2009.

Page 6


 

     
(MEN'S WEARHOUSE LOGO)
  THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                 
    August 1,     August 2,  
    2009     2008  
ASSETS
               
 
               
Current assets:
               
Cash and cash equivalents
  $ 144,449     $ 119,248  
Short-term investments
    19,490        
Accounts receivable, net
    17,129       19,047  
Inventories
    430,777       457,212  
Other current assets
    51,876       59,012  
 
           
 
               
Total current assets
    663,721       654,519  
Property and equipment, net
    375,595       400,791  
Tuxedo rental product, net
    107,848       90,860  
Goodwill
    59,266       61,538  
Other assets, net
    16,466       25,351  
 
           
 
               
Total assets
  $ 1,222,896     $ 1,233,059  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Accounts payable
  $ 78,918     $ 102,780  
Accrued expenses and other current liabilities
    115,488       118,113  
Income taxes payable
    19,276       9,347  
 
           
 
               
Total current liabilities
  $ 213,682     $ 230,240  
Long-term debt
    43,161       84,221  
Deferred taxes and other liabilities
    63,289       67,320  
 
           
 
               
Total liabilities
    320,132       381,781  
 
           
Shareholders’ equity:
               
Preferred stock
           
Common stock
    703       698  
Capital in excess of par
    319,029       308,670  
Retained earnings
    961,670       915,541  
Accumulated other comprehensive income
    33,988       38,905  
 
           
Total
    1,315,390       1,263,814  
 
               
Treasury stock, at cost
    (412,626 )     (412,536 )
 
           
 
               
Total shareholders’ equity
    902,764       851,278  
 
           
 
               
Total liabilities and equity
  $ 1,222,896     $ 1,233,059  
 
           

Page 7


 

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

(Unaudited)
FOR THE SIX MONTHS ENDED
August 1, 2009 AND August 2, 2008

(In thousands)
                 
    Six Months Ended  
    2009     2008  
 
               
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net earnings
  $ 44,741     $ 42,768  
Non-cash adjustments to net earnings:
               
Depreciation and amortization
    43,881       46,925  
Tuxedo rental product amortization
    22,089       21,819  
Other
    (334 )     4,606  
Changes in assets and liabilities
    (248 )     (30,511 )
 
           
 
               
Net cash provided by operating activities
    110,129       85,607  
 
           
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (28,757 )     (49,524 )
Proceeds from sales of available-for-sale investments
          59,921  
Other investing activities
          12  
 
           
 
               
Net cash provided by (used in) investing activities
    (28,757 )     10,409  
 
           
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from issuance of common stock
    1,051       1,181  
Proceeds from revolving credit facility
          100,600  
Payments on revolving credit facility
    (25,000 )     (105,975 )
Cash dividends paid
    (7,344 )     (7,281 )
Purchase of treasury stock
    (90 )     (156 )
Other financing activities
    (1,588 )     (1,320 )
 
           
 
               
Net cash used in financing activities
    (32,971 )     (12,951 )
 
           
 
               
Effect of exchange rate changes
    8,636       (3,263 )
 
           
 
               
INCREASE IN CASH AND CASH EQUIVALENTS
    57,037       79,802  
Balance at beginning of period
    87,412       39,446  
 
           
Balance at end of period
  $ 144,449     $ 119,248  
 
           

Page 8