Exhibit 99.1
     
The Men’s Wearhouse, Inc.   (MEN'S WEARHOUSE LOGO)     
     
 News Release   For Immediate Release     
MEN’S WEARHOUSE REPORTS FISCAL 2005
FOURTH QUARTER AND YEAR END RESULTS
  Q4 2005 GAAP diluted EPS was $0.60 versus $0.45 last year
  Fiscal 2005 GAAP diluted EPS was $1.88 versus $1.29 for last year
  Company estimates fiscal 2006 GAAP and adjusted diluted EPS in a range of $2.28 to $2.35
  Results and estimates include a number of significant items, refer to attached reconciliation tables
  Conference call at 5:00 pm eastern today
HOUSTON – March 1, 2005 – The Men’s Wearhouse (NYSE: MW) today announced its consolidated financial results for the fourth quarter and year ended January 28, 2006.
George Zimmer, founder, chairman and chief executive officer, stated, “Fiscal 2005 was a tremendous year for all of our stakeholders. In May 2005, we announced a three for two stock split, our fourth stock split since going public in 1992. In January 2006, the Board of Directors declared the company’s first quarterly cash dividend of $0.05 per share as well as a $100 million stock buyback program. Also in January 2006, we were named once again by FORTUNE® magazine as one of the 100 Best Companies to Work for In America. Lastly, with this release today, we are reporting a historical level of net earnings – exceeding the $100 million mark. We entered the year with the objective to leverage our brands and drive shareholder value, and we have made great strides towards both these goals.”
FOURTH QUARTER RESULTS
                                 
Fourth Quarter Sales Summary – Fiscal 2005
    U.S. dollars, in millions   Total Sales Change %   Comparable Store
    Current Year   Prior Year           Sales Change %
 
Total Company
  $ 497.0     $ 458.7       8.4 %        
 
United States
  $ 437.4     $ 402.5       8.7 %     6.1 %
 
Canada
  $ 59.6     $ 56.2       6.1 % (A)     0.9 %
 
 
(A)   Total sales change % using Canadian dollars was 2.2%.

 


 

Fourth quarter 2005 operating income was $55.6 million compared to $41.0 million last year, and net income was $32.7 million compared to $25.0 million last year. GAAP diluted earnings per share were $0.60 for the fourth quarter ended January 28, 2006 compared to $0.45 last year. Adjusted diluted earnings per share for the 2005 fiscal fourth quarter was $0.67 per share compared to adjusted diluted earnings per share of $0.47 last year. For additional information regarding adjusted diluted earnings per share, please see the table included below as well as the non-GAAP reconciliations provided at the end of this release.
Fourth Quarter Highlights
    Comparable store sales of 6.1% for the company’s United States based stores exceeded its initial guidance of 3% to 4% and were driven primarily by stronger than anticipated traffic levels,
 
    Operating income and margin improvements exceeded the company’s plan which was driven by a greater mix of regular priced merchandise sell thru as well as selling, general and administrative expense leverage,
 
    The effective tax rate for the quarter was 40.8% and included a one time tax expense of $3.9 million, or $0.07 per diluted share, related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act. This one time tax expense was higher than previously estimated due to an increase in the estimated amount of withholding taxes due on the repatriated funds.
YEAR-TO-DATE RESULTS
                                 
Twelve Months Sales Summary – Fiscal 2005
    U.S. dollars, in millions   Total Sales   Comparable Store
    Current Year   Prior Year   Change %   Sales Change %
 
Total Company
  $ 1,724.9     $ 1,546.7       11.5 %        
 
United States
  $ 1,531.4     $ 1,371.8       11.6 %     8.4 %
 
Canada
  $ 193.5     $ 174.9       10.6 % (B)     2.7 %
 
 
(B)   Total sales change % using Canadian dollars was 3.4%.
2005 operating income was $165.3 million compared to $118.1 million last year, and net income was $103.9 million compared to $71.4 million last year. GAAP diluted earnings per share were $1.88 for the year ended January 28, 2006 compared to $1.29 last year. Adjusted diluted earnings per share for fiscal 2005 were $2.04 per share compared to adjusted diluted earnings per share of $1.37 last year. For additional information regarding adjusted diluted earnings per share, please see the table included below as well as the non-GAAP reconciliations provided at the end of this release.

 


 

2006 GUIDANCE AND HIGHLIGHTS
The company is targeting adjusted diluted earnings per share growth between 12% to 15% increase, as outlined in the table below – “Reconciliation of GAAP diluted EPS to Adjusted diluted EPS”.
For the fiscal year ending February 3, 2007 (which is a 53-week year under the retail calendar), the company expects GAAP and adjusted diluted earnings per share in a range of $2.28 to $2.35 based on 2% to 4% same store sales increases in the U.S. and Canada, an effective tax rate of approximately 36.7% and fully diluted shares outstanding of 54.6 million.
Forecasted operating highlights for the full year include the following:
    New store growth includes up to 15 net new K&G stores and 17 net new Men’s Wearhouse stores. We also expect to relocate and remodel up to 25 U.S. stores during the year. Total square footage growth is expected in the mid to high single digit range,
 
    Gross margins are planned to continue to increase and stem largely from the company’s ongoing strategy of increasing the penetration of its private label apparel product offerings,
 
    Modest selling, general and administrative expense deleveraging is anticipated as the company increases its investments in marketing programs and recognizes stock option expense under Statement of Financial Accounting Standards No. 123R, which the company adopted for the fiscal year 2006.
For the first quarter of 2006, the company expects 2% to 3% same store sales growth in the U.S. and in Canada and GAAP diluted earnings per share to be in the range of $0.44 to $0.46. Adjusted diluted earnings per share for the first quarter are expected to be in the range $0.46 to $0.48.
IMPACT OF SIGNIFICANT ITEMS
In order to aid investors’ understanding of the Company’s results and to improve comparability of financial information from period to period, explanatory non-GAAP reconciliation tables are included at the end of this press release. Summarized earnings per share information from these tables as well as guidance for the first quarter of fiscal 2006 and full year follows:

 


 

Summary Reconciliation of GAAP diluted EPS to Adjusted diluted EPS
                                                                                                 
    UNAUDITED HISTORICAL RESULTS (1) (2)   GUIDANCE
    Fiscal 2004   Fiscal 2005   Fiscal 2006
    1Q   2Q   3Q   4Q   YR   1Q   2Q   3Q   4Q   YR   1Q   YR
GAAP Diluted EPS
    0.27       0.33       0.23       0.45       1.29       0.41       0.43       0.44       0.60       1.88       0.44 - 0.46       2.28 - 2.35  
Adjustments (3)
                                                                                               
Eddie Rodriguez
Costs (4)
    0.01       0.01       0.01       0.02       0.05       0.05       0.06                       0.11                  
Technology Impairment
                    0.03               0.03                                                          
Stock Based Compensation (5)
                                                                                               
Reported in Earnings
                                                    0.01       0.01       0.01       0.03       0.02       0.06  
53rd Week Impact (6)
                                                                                            (0.06 )
Foreign Earnings Repatriation (7)
                                                                    0.07       0.07                  
Discrete Tax Items (8)
                                                            (0.04 )     (0.02 )     (0.05 )                
             
Net Adjustments
    0.01       0.01       0.04       0.02       0.08       0.05       0.07       (0.02 )     0.07       0.17       0.02       0.00  
             
 
                                                                                               
             
Adjusted Diluted EPS
    0.28       0.35       0.27       0.47       1.37       0.46       0.50       0.41       0.67       2.04       0.46 - 0.48       2.28 - 2.35  
             
 
1.   Reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005.
 
2.   Due to the effect of rounding, the sum of the per share amounts may not equal the effect of the adjustments.
 
3.   Net of tax.
 
4.   The company ceased operating its test of the new retail concept “Eddie Rodriguez” in the second quarter of fiscal 2005.
 
5.   In fiscal 2005 the company did not grant non-qualified stock options (NQO’s) to key employees, opting instead to issue primarily deferred stock units (DSU’s). In 2006 the company will begin recognizing stock option expense as it adopted FASB No. 123R. Amounts reported in earnings for 2005 include primarily DSU’s and for 2006 include mostly DSU’s and NQO’s.
 
6.   Fiscal 2006 will include one additional week (for a total of 53 weeks) as the company reports its fiscal operations on a retail calendar.
 
7.   The company incurred a one-time tax expense of $3.9 million ($0.07 per share) related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act.
 
8.   Adjustments to tax reserves associated with favorable developments on certain outstanding income tax matters.
CONFERENCE CALL AND WEBCAST INFORMATION
At 5:00 p.m. Eastern time today, company management will host a conference call and real time web cast to review the results for the fiscal fourth quarter and full year 2005 and provide an outlook for fiscal 2006.
To access the conference call, dial 303-262-2130. 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 March 8th by calling 303-590-3000 and entering the access code of 11052856, or a webcast archive will be available free on the website for approximately 90 days.

 


 

STORE INFORMATION
                                 
    January 28, 2006   January 29, 2005
    Number   Sq. Ft.   Number   Sq. Ft.
    of Stores   (000’s)   of Stores   (000’s)
 
Men’s Wearhouse
    526       2,898.4       517       2,825.3  
 
Moores, Clothing for Men
    116       719.8       114       705.3  
 
K&G (C)
    77       1,835.2       76       1,770.1  
 
Total
    719       5,453.4       707       5,300.7  
 
(C)   52 and 43 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 719 stores. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories, including tuxedo rentals available in the Men’s Wearhouse and Moores 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 unfavorable local, regional and national economic developments, disruption in retail buying trends due to homeland security concerns, severe weather conditions, aggressive advertising or marketing activities of competitors and other factors described herein and in the company’s annual report on Form 10-K for the year ended January 29, 2005 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 (713) 592-7200
 
      Ken Dennard, DRG&E (713) 529-6600

 


 

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

(Unaudited)
FOR THE TWELVE MONTHS ENDED
January 28, 2006 AND January 29, 2005

(In thousands, except per share data)
                                 
    Twelve Months Ended  
            % of             % of  
    2005     Sales     2004     Sales  
Net sales
  $ 1,724,898       100.00 %   $ 1,546,679       100.00 %
Cost of goods sold, including buying, distribution and occupancy costs
    1,027,763       59.58 %     943,675       61.01 %
     
Gross margin
    697,135       40.42 %     603,004       38.99 %
 
                               
Selling, general and administrative expenses
    531,839       30.83 %     484,916       31.35 %
     
 
                               
Operating income
    165,296       9.58 %     118,088       7.63 %
 
                               
Interest income
    (3,280 )     (0.19 %)     (1,526 )     (0.10 %)
Interest expense
    5,888       0.34 %     5,899       0.38 %
     
 
                               
Earnings before income taxes
    162,688       9.43 %     113,715       7.35 %
 
                               
Provision for income taxes
    58,785       3.41 %     42,359       2.74 %
     
 
                               
Net earnings
  $ 103,903       6.02 %   $ 71,356       4.61 %
     
 
                               
Net earnings per share (1) :
                               
Basic
  $ 1.93             $ 1.32          
 
                           
Diluted
  $ 1.88             $ 1.29          
 
                           
 
                               
Weighted average common shares outstanding (1) :
                               
Basic
    53,753               54,044          
 
                           
Diluted
    55,365               55,220          
 
                           
 
(1)   All earnings per share and weighted average common share information reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005.

 


 

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

(Unaudited)
FOR THE THREE MONTHS ENDED
January 28, 2006 AND January 29, 2005

(In thousands, except per share data)
                                 
    Three Months Ended  
            % of             % of  
    2005     Sales     2004     Sales  
Net sales
  $ 496,978       100.00 %   $ 458,675       100.00 %
Cost of goods sold, including buying, distribution and occupancy costs
    291,751       58.71 %     278,293       60.67 %
     
Gross margin
    205,227       41.29 %     180,382       39.33 %
 
                               
Selling, general and administrative expenses
    149,658       30.11 %     139,351       30.38 %
     
 
                               
Operating income
    55,569       11.18 %     41,031       8.95 %
 
                               
Interest income
    (1,158 )     (0.23 %)     (573 )     (0.12 %)
Interest expense
    1,461       0.29 %     1,695       0.37 %
     
 
                               
Earnings before income taxes
    55,266       11.12 %     39,909       8.70 %
 
                               
Provision for income taxes
    22,532       4.53 %     14,866       3.24 %
     
 
                               
Net earnings
  $ 32,734       6.59 %   $ 25,043       5.46 %
     
 
                               
Net earnings per share (1):
                               
Basic
  $ 0.62             $ 0.46          
 
                           
Diluted
  $ 0.60             $ 0.45          
 
                           
 
                               
Weighted average common shares outstanding (1):
                               
Basic
    52,862               54,222          
 
                           
Diluted
    54,166               55,686          
 
                           
 
(1)   All earnings per share and weighted average common share information reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005.

 


 

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

(In thousands)
(Unaudited)
                 
    January 28,     January 29,  
    2006     2005  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 200,226     $ 165,008  
Short-term investments
    62,775        
Accounts receivable, net
    19,276       20,844  
Inventories
    416,603       406,225  
Other current assets
    30,732       34,920  
 
           
Total current assets
    729,612       626,997  
Property and equipment, net
    269,586       260,068  
Goodwill
    57,601       55,824  
Other assets, net
    66,475       50,433  
 
           
 
               
Total assets
  $ 1,123,274     $ 993,322  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities
  $ 238,085     $ 238,768  
Long-term debt
    205,251       130,000  
Deferred taxes and other liabilities
    52,405       55,706  
Shareholders’ equity
    627,533       568,848  
 
           
 
               
Total liabilities and equity
  $ 1,123,274     $ 993,322  
 
           

 


 

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

(Unaudited)
FOR THE TWELVE MONTHS ENDED
January 28, 2006 AND January 29, 2005

(In thousands)
                 
    Twelve Months Ended  
    2005     2004  
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net earnings
  $ 103,903     $ 71,356  
Non-cash adjustments to net earnings:
               
Depreciation and amortization
    61,874       53,319  
Other
    3,217       6,018  
Changes in assets and liabilities
    (14,433 )     (714 )
 
           
 
               
Net cash provided by operating activities
    154,561       129,979  
 
           
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (66,499 )     (85,392 )
Purchases of available-for-sale investments
    (106,850 )      
Proceeds from sales of available-for-sale investments
    44,075        
Net assets acquired
          (11,000 )
Other
    (141 )     (556 )
 
           
 
               
Net cash used in investing activities
    (129,415 )     (96,948 )
 
           
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Bank borrowings
    71,695        
Principal payments on debt
          (1,000 )
Proceeds from issuance of common stock
    24,262       10,876  
Purchase of treasury stock
    (90,280 )     (11,186 )
Other
    (556 )     (276 )
 
           
 
               
Net cash provided by (used in) financing activities
    5,121       (1,586 )
 
           
 
               
Effect of exchange rate changes
    4,951       1,417  
 
           
INCREASE IN CASH AND CASH EQUIVALENTS
    35,218       32,862  
Balance at beginning of period
    165,008       132,146  
 
           
Balance at end of period
  $ 200,226     $ 165,008  
 
           

 


 

THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(A Non-GAAP Financial Measure)

(In thousands, except per share amounts)
Use of Non-GAAP Financial Measures
We have provided non-GAAP adjusted earnings per share information. This non-GAAP financial information is provided to enhance the user’s overall understanding of the company’s current financial performance. Specifically, we believe the non-GAAP adjusted results provide useful information to both management and investors by excluding certain expense items that we believe are not indicative of our core operating results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. The following are the reconciliations of this non-GAAP information and reflect the three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005. It should also be noted, the sum of the per share amounts may not equal due to the effect of rounding.
Non-GAAP Financial Measures (in thousands, except per share information)
                         
    Three Months Ended May 1, 2004  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 360,729     $ (412 )   $ 360,317  
Cost of goods sold, including buying, distribution and occupancy costs
    222,919       (634 )     222,285  
 
                 
Gross margin
    137,810       222       138,032  
Selling, general and administrative expenses
  112,742     (554 )   112,188  
Operating Income
    25,068       776       25,844  
Interest income
    (274 )           (274 )
Interest expense
    1,351             1,351  
 
                 
Earnings before income taxes
    23,991       776       24,767  
Provision for income taxes
    8,936       289       9,225  
 
                 
Net earnings
  $ 15,055     $ 487     $ 15,542  
 
                 
Net earnings per diluted share
  $ 0.27     $ 0.01     $ 0.28  
 
                 
Weighted average diluted common shares outstanding
    55,218               55,218  
 
                   
 
(1)   The adjustments are as follows:
  a.   $484 thousand, net of tax, or $0.01 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and
 
  b.   $3 thousand, net of tax, related to stock based compensation.

 


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended July 31, 2004  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 369,480     $ (733 )   $ 368,747  
Cost of goods sold, including buying, distribution and occupancy costs
    224,024       (1,139 )     222,885  
 
                 
Gross margin
    145,456       406       145,862  
Selling, general and administrative expenses
  115,185     (696 )   114,489  
Operating Income
    30,271       1,102       31,373  
Interest income
    (363 )           (363 )
Interest expense
    1,422             1,422  
 
                 
Earnings before income taxes
    29,212       1,102       30,314  
Provision for income taxes
    10,832       405       11,237  
 
                 
Net earnings
  $ 18,380     $ 697     $ 19,077  
 
                 
Net earnings per diluted share
  $ 0.33     $ 0.01     $ 0.35  
 
                 
Weighted average diluted common shares outstanding
    54,937               54,937  
 
                   
                         
    Three Months Ended October 30, 2004  
            (2)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 357,795     $ (818 )   $ 356,977  
Cost of goods sold, including buying, distribution and occupancy costs
    218,439       (1,488 )     216,951  
 
                 
Gross margin
    139,356       670       140,026  
Selling, general and administrative expenses
  117,638     (2,795 )   114,843  
Operating Income
    21,718       3,465       25,183  
Interest income
    (316 )           (316 )
Interest expense
    1,431             1,431  
 
                 
Earnings before income taxes
    20,603       3,465       24,068  
Provision for income taxes
    7,725       1,296       9,021  
 
                 
Net earnings
  $ 12,878     $ 2,169     $ 15,047  
 
                 
Net earnings per diluted share
  $ 0.23     $ 0.04     $ 0.27  
 
                 
Weighted average diluted common shares outstanding
    55,038               55,038  
 
                   
 
(1)   The adjustments are as follows:
  a.   $669 thousand, net of tax, or $0.01 diluted earnings per share net operating losses from the Eddie Rodriguez stores and
 
  b.   $28 thousand, net of tax, related to stock based compensation.
 
(2)   The adjustments are as follows:
  a.   $785 thousand, net of tax, or $0.01 diluted earnings per share in net operating losses from the Eddie Rodriguez stores
 
  b.   $23 thousand, net of tax, related to stock based compensation and
 
  c.   $1.361 million, net of tax or $0.03 diluted earnings per share related to the impairment of certain technology assets.

 


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended January 29, 2005  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 458,675     $ (1,215 )   $ 457,460  
Cost of goods sold, including buying, distribution and occupancy costs
    278,293       (1,870 )     276,423  
 
                 
Gross margin
    180,382       655       181,037  
Selling, general and administrative expenses
  139,351     (868 )   138,483  
Operating Income
    41,031       1,523       42,554  
Interest income
    (573 )           (573 )
Interest expense
    1,695             1,695  
 
                 
Earnings before income taxes
    39,909       1,523       41,432  
Provision for income taxes
    14,866       567       15,433  
 
                 
Net earnings
  $ 25,043     $ 956     $ 25,999  
 
                 
Net earnings per diluted share
  $ 0.45     $ 0.02     $ 0.47  
 
                 
Weighted average diluted common shares outstanding
    55,686               55,686  
 
                   
                         
    Twelve Months Ended January 29, 2005  
            (2)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 1,546,679     $ (3,178 )   $ 1,543,501  
Cost of goods sold, including buying, distribution and occupancy costs
    943,675       (5,132 )     938,543  
 
                 
Gross margin
    603,004       1,954       604,958  
Selling, general and administrative expenses
  484,916     (4,913 )   480,003  
Operating Income
    118,088       6,867       124,955  
Interest income
    (1,526 )           (1,526 )
Interest expense
    5,899             5,899  
 
                 
Earnings before income taxes
    113,715       6,867       120,582  
Provision for income taxes
    42,359       2,557       44,916  
 
                 
Net earnings
  $ 71,356     $ 4,310     $ 75,666  
 
                 
Net earnings per diluted share
  $ 1.29     $ 0.08     $ 1.37  
 
                 
Weighted average diluted common shares outstanding
    55,220               55,220  
 
                   
 
(1)   The adjustments are as follows:
  a.   $933 thousand, net of tax, or $0.02 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and
 
  b.   $23 thousand, net of tax, related to stock based compensation.
 
(2)   The adjustments are as follows:
  a.   $2.872 million, net of tax, or $0.05 diluted earnings per share in net operating losses from the Eddie Rodriguez stores
 
  b.   $77 thousand, net of tax, related to stock based compensation and
 
  c.   $1.361 million, net of tax, or $0.03 diluted earnings per share related to the impairment of certain technology assets.

 


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended April 30, 2005  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 411,649     $ (1,006 )   $ 410,643  
Cost of goods sold, including buying, distribution and occupancy costs
    245,866       (1,631 )     244,235  
 
                 
Gross margin
    165,783       625       166,408  
Selling, general and administrative expenses
  128,909     (4,036 )   124,873  
Operating Income
    36,874       4,661       41,535  
Interest income
    (794 )           (794 )
Interest expense
    1,487             1,487  
 
                 
Earnings before income taxes
    36,181       4,661       40,842  
Provision for income taxes
    13,477       1,736       15,213  
 
                 
Net earnings
  $ 22,704     $ 2,925     $ 25,629  
 
                 
Net earnings per diluted share
  $ 0.41     $ 0.05     $ 0.46  
 
                 
Weighted average diluted common shares outstanding
    55,835               55,835  
 
                   
                         
    Three Months Ended June 30, 2005  
            (2)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 423,576     $ (785 )   $ 422,791  
Cost of goods sold, including buying, distribution and occupancy costs
    255,280       (3,485 )     251,795  
 
                 
Gross margin
    168,296       2,700       170,996  
Selling, general and administrative expenses
  129,892     (3,495 )   126,397  
Operating Income
    38,404       6,195       44,599  
Interest income
    (771 )           (771 )
Interest expense
    1,512             1,512  
 
                 
Earnings before income taxes
    37,663       6,195       43,858  
Provision for income taxes
    13,277       2,183       15,460  
 
                 
Net earnings
  $ 24,386     $ 4,012     $ 28,398  
 
                 
Net earnings per diluted share
  $ 0.43     $ 0.07     $ 0.50  
 
                 
Weighted average diluted common shares outstanding
    56,490               56,490  
 
                   
 
(1)   The adjustments are as follows:
  a.   $2.886 million, net of tax, or $.05 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and
 
  b.   $39 thousand, net of tax, related to stock based compensation.
 
(2)   The adjustments are as follows:
  a.   $3.379 million, net of tax, or $0.06 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and
 
  b.   $633 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation.

 


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended October 29, 2005  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 392,695     $     $ 392,695  
Cost of goods sold, including buying, distribution and occupancy costs
    234,866             234,866  
 
                 
Gross margin
    157,829             157,829  
Selling, general and administrative expenses
  123,380     (928 )   122,452  
Operating Income
    34,449       928       35,377  
Interest income
    (557 )           (557 )
Interest expense
    1,428             1,428  
 
                 
Earnings before income taxes
    33,578       928       34,506  
Provision for income taxes
    9,499       2,278       11,777  
 
                 
Net earnings
  $ 24,079     $ (1,350 )   $ 22,729  
 
                 
Net earnings per diluted share
  $ 0.44     $ (0.02 )   $ 0.41  
 
                 
Weighted average diluted common shares outstanding
    54,971               54,971  
 
                   
                         
    Three Months Ended January 28, 2006  
            (2)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 496,978     $     $ 496,978  
Cost of goods sold, including buying, distribution and occupancy costs
    291,751             291,751  
 
                 
Gross margin
    205,227             205,227  
Selling, general and administrative expenses
  149,658     (939 )   148,719  
Operating Income
    55,569       939       56,508  
Interest income
    (1,158 )           (1,158 )
Interest expense
    1,461             1,461  
 
                 
Earnings before income taxes
    55,266       939       56,205  
Provision for income taxes
    22,532       (2,631 )     19,901  
 
                 
Net earnings
  $ 32,734     $ 3,570     $ 36,304  
 
                 
Net earnings per diluted share
  $ 0.60     $ 0.07     $ 0.67  
 
                 
Weighted average diluted common shares outstanding
    54,166               54,166  
 
                   
 
(1)   The adjustments are as follows:
  a.   $666 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation and
 
  b.   ($2.016) million or ($0.04) diluted earnings per share in discrete tax items.
 
(2)   The adjustments are as follows:
  a.   $556 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation
 
  b.   ($898) thousand or ($0.02) diluted earnings per share in discrete tax items and
 
  c.   $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense.

 


 

Non-GAAP Financial Measures (continued)
                         
    Twelve Months Ended January 28, 2006  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 1,724,898     $ (1,791 )   $ 1,723,107  
Cost of goods sold, including buying, distribution and occupancy costs
    1,027,763       (5,116 )     1,022,647  
 
                 
Gross margin
    697,135       3,325       700,460  
Selling, general and administrative expenses
  531,839     (9,398 )   522,441  
Operating Income
    165,296       12,723       178,019  
Interest income
    (3,280 )           (3,280 )
Interest expense
    5,888             5,888  
 
                 
Earnings before income taxes
    162,688       12,723       175,411  
Provision for income taxes
    58,785       3,566       62,351  
 
                 
Net earnings
  $ 103,903     $ 9,157     $ 113,060  
 
                 
Net earnings per diluted share
  $ 1.88     $ 0.17     $ 2.04  
 
                 
Weighted average diluted common shares outstanding
    55,365               55,365  
 
                   
 
(1)   The adjustments are as follows:
  a.   $6.265 million, net of tax, or $0.11 diluted earnings per share in net operating losses from the Eddie Rodriguez stores
 
  b.   $1.894 million, net of tax, or $0.03 diluted earnings per share related to stock based compensation
 
  c.   ($2.914) million or ($0.05) diluted earnings per share in discrete tax items and
 
  d.   $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense.