Exhibit 99.1
The Men’s Wearhouse, Inc.   (LOGO)
     
News Release   For Immediate Release
MEN’S WEARHOUSE REPORTS
FISCAL 2006 THIRD QUARTER RESULTS
  Q3 2006 GAAP diluted EPS was $0.58 versus $0.44 last year
  Company estimates Q4 2006 GAAP and adjusted diluted EPS in a range of $0.72 to $0.76 and $0.68 to $0.72, respectively
  Company estimates Fiscal 2006 GAAP and adjusted diluted EPS in a range of $2.48 to $2.52 and $2.50 and $2.54, respectively
  Results and estimates include a number of significant items, refer to attached reconciliation tables
  Conference call at 5:00 pm eastern today
HOUSTON — November 15, 2006 — The Men’s Wearhouse (NYSE: MW) today announced its consolidated financial results for the third quarter ended October 28, 2006.
THIRD QUARTER RESULTS
Third Quarter Sales Summary — Fiscal 2006
                                         
                            Comparable Store Sales
    U.S. dollars, in millions   Total Sales   Change %
    Current Year   Prior Year   Change %   Current Year   Prior Year
Total Company
  $ 430.1     $ 392.7       9.5 %                
TMW
  $ 282.2     $ 263.5       7.1 %     4.3 %     6.3 %
K&G
  $ 89.9     $ 81.2       10.7 %     0.2 %     7.8 %
United States
  $ 376.8     $ 348.7       8.1 %     3.4 %     6.6 %
Moores (C$)
  $ 59.8     $ 52.2       14.5 %     13.0 %     3.1 %
Year-To-Date Third Quarter Sales Summary — Fiscal 2006
                                         
                            Comparable Store Sales
    U.S. dollars, in millions   Total Sales   Change %
    Current Year   Prior Year   Change %   Current Year   Prior Year
Total Company
  $ 1,325.2     $ 1,227.9       7.9 %                
TMW
  $ 864.7     $ 809.8       6.8 %     4.3 %     6.6 %
K&G
  $ 288.2     $ 270.3       6.6 %     0.0 %     19.5 %
United States
  $ 1,166.8     $ 1,094.0       6.6 %     3.3 %     9.4 %
Moores (C$)
  $ 178.5     $ 163.3       9.3 %     8.3 %     3.5 %

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Third quarter 2006 operating income was $48.9 million compared to $33.6 million last year, and net income was $31.8 million compared to $24.1 million last year. GAAP diluted earnings per share were $0.58 for the third quarter ended October 28, 2006 compared to $0.44 last year. Adjusted diluted earnings per share for the 2006 fiscal third quarter was $0.60 per share compared to adjusted diluted earnings per share of $0.41 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.
THIRD QUARTER HIGHLIGHTS
    SALES — Comparable store sales of 3.4% for the company’s United States based stores were in line with the company’s initial guidance range of 2% to 4% and compared to the prior year quarter increase of 6.6%.
 
    GROSS MARGIN — Gross margin, as a percentage of sales, increased 291 basis points to 43.10% from 40.19%. The increase in gross margin was driven by year over year improvements in merchandise margins which stem from lower product costs as well as the continued growth of tuxedo rental revenues.
 
    SG&A EXPENSES — Selling, general and administrative expenses, as a percentage of sales, increased 34 basis points to 31.76% from 31.42%.
 
    SHARES OUTSTANDING — Weighted average diluted shares outstanding decreased 0.1% over prior year third quarter from 54.971 million shares to 54.903 million shares.
ADDITIONAL HIGHLIGHTS
    CORPORATE APPAREL CONTRACT WINS — TwinHill, Men’s Wearhouse Corporate Apparel division, announced two major multi-year contract awards from US Airways and Northwest Airlines (NWA). Aggregate contract revenues from these awards are estimated at $40 million over the next four years.
 
    TwinHill will provide US Airways tailored uniform apparel for over 17,000 full and part time US Airways Flight Attendant and Customer Service employees.
 
    Northwest Airlines selected TwinHill to design, manufacture and distribute the new uniform ensembles to over 12,000 NWA Flight Attendant and Customer Service Agents to coincide with the launch of its new Boeing 787 fleet.

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George Zimmer, Men’s Wearhouse founder, chairman and chief executive officer, stated, “We are extremely pleased with our quarterly results and are also very pleased to be able to announce major contract wins at TwinHill with two ‘household names’ from Corporate America, each with their programs scheduled to commence in fiscal 2007.”
FOURTH QUARTER 2006 GUIDANCE AND UPDATED FISCAL 2006 OUTLOOK
For the fourth quarter of 2006, the company expects GAAP diluted earnings per share to be in the range of $0.72 to $0.76. Adjusted diluted earnings per share for the fourth quarter are expected to be in the range $0.68 to $0.72. Same store sales increases for the fourth quarter of 2006 are expected to range between 1% and 2% in the U.S. and between 2% and 4% in Canada with an effective tax rate of approximately 36% and fully diluted shares outstanding of 55.3 million.
For the fiscal year ending February 3, 2007 (which is a 53-week year under the retail calendar), the company expects GAAP diluted earnings per share in a range of $2.48 to $2.52. Adjusted diluted earnings per share for the fiscal year are expected to be in a range of $2.50 to $2.54. Same store sales increases for fiscal 2006 in the U.S. are expected to range between 1% and 3% and between 5% and 7% in Canada with an effective tax rate of approximately 36% and fully diluted shares outstanding of 54.9 million.
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 fourth quarter of fiscal 2006 and full year follows:
Summary Reconciliation of GAAP diluted EPS to Adjusted diluted EPS
                                                                                       
    HISTORICAL RESULTS (1)       GUIDANCE  
    Fiscal 2005       Fiscal 2006       Fiscal 2006  
    1Q     2Q     3Q     4Q       YR       1Q     2Q     3Q       4Q     YR  
GAAP Diluted EPS
    0.41       0.43       0.44       0.60         1.88         0.53       0.65       0.58         0.72 - 0.76       2.48 - 2.52  
 
                                                                                     
Adjustments (2)
                                                                                     
Eddie Rodriguez Costs (3)
    0.05       0.06                         0.11                                              
Stock Based Compensation Reported in Earnings (4)
            0.01       0.01       0.01         0.03         0.02       0.02       0.02         0.02       0.08  
53rd Week Impact (5)
                                                                          (0.06 )     (0.06 )
Foreign Earnings Repatriation (6)
                            0.07         0.07                                              
Discrete Tax Items (7)
                    (0.04 )     (0.02 )       (0.05 )                                            
                       
Net Adjustments
    0.05       0.07       (0.02 )     0.07         0.17         0.02       0.02       0.02         (0.04 )     0.02  
                       
Adjusted Diluted EPS
    0.46       0.50       0.41       0.67         2.04         0.55       0.67       0.60         0.68 - 0.72       2.50 - 2.54  
                       
1.   Due to the effect of rounding, the sum of the individual per share amounts may not equal the total shown.
 
2.   Net of tax.
 
3.   The company ceased operating its test of the new retail concept “Eddie Rodriguez” in the second quarter of fiscal 2005.
 
4.   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 began 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.
 
5.   Fiscal 2006 will include one additional week (for a total of 53 weeks) as the company reports its fiscal operations on a retail calendar.
 
6.   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.
 
7.   Adjustments to tax reserves associated with favorable developments on certain outstanding income tax matters.

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CONVERTIBLE DEBENTURES CONVERSION TRIGGERED
As a result of the closing sale price of the Company’s common stock exceeding 120% of the conversion price for the Company’s 3.125% Convertible Senior Notes due 2023 for the requisite number of days set forth in the indenture governing such Notes, the Notes may be converted by the holders at their election during the conversion period beginning November 17, 2006 and ending February 22, 2007.
As previously announced, the Company has irrevocably elected to settle the principal amount at issuance of the notes in cash when and if surrendered for conversion.
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 third quarter 2006.
To access the conference call, dial 303-262-2137. 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 November 22nd by calling 303-590-3000 and entering the access code of 11076483#, or a webcast archive will be available free on the website for approximately 90 days.
STORE INFORMATION
                                                 
    October 28, 2006   October 29, 2005   January 28, 2006
    Number   Sq. Ft.   Number   Sq. Ft.   Number   Sq. Ft.
    of Stores   (000’s)   of Stores   (000’s)   of Stores   (000’s)
 
Men’s Wearhouse
    538       2,979.9       525       2,887.0       526       2,898.4  
Moores, Clothing for Men
    116       719.1       115       714.8       116       719.8  
K&G (A)
    89       2,112.2       77       1,829.4       77       1,835.2  
Total
    743       5,811.2       717       5,431.2       719       5,453.4  
 
(A)   68, 51 and 52 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 743 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.

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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 28, 2006 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

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(LOGO)   THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE THREE MONTHS ENDED
October 28, 2006 AND October 29, 2005

(In thousands, except per share data)
                                 
    Three Months Ended  
            % of             % of  
    2006     Sales     2005     Sales  
     
Net sales
  $ 430,068       100.00 %   $ 392,695       100.00 %
Cost of goods sold, including buying, distribution and occupancy costs
    244,690       56.90 %     234,866       59.81 %
           
Gross margin
    185,378       43.10 %     157,829       40.19 %
 
                               
Selling, general and administrative expenses
    136,610       31.76 %     123,380       31.42 %
           
 
                               
Operating income
    48,768       11.34 %     34,449       8.77 %
 
                               
Interest income
    (2,461 )     (0.57 %)     (557 )     (0.14 %)
Interest expense
    2,346       0.55 %     1,428       0.36 %
           
 
                               
Earnings before income taxes
    48,883       11.37 %     33,578       8.55 %
 
                               
Provision for income taxes
    17,109       3.98 %     9,499       2.42 %
           
 
                               
Net earnings
  $ 31,774       7.39 %   $ 24,079       6.13 %
           
 
                               
Net earnings per share:
                               
Basic
  $ 0.60             $ 0.45          
 
                           
Diluted
  $ 0.58             $ 0.44          
 
                           
 
                               
Weighted average common shares outstanding:
                               
Basic
    53,098               53,661          
 
                           
Diluted
    54,903               54,971          
 
                           

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(LOGO)   THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
FOR THE NINE MONTHS ENDED
October 28, 2006 AND October 29, 2005

(In thousands, except per share data)
                                 
    Nine Months Ended  
            % of             % of  
    2006     Sales     2005     Sales  
     
Net sales
  $ 1,325,219       100.00 %   $ 1,227,920       100.00 %
Cost of goods sold, including buying, distribution and occupancy costs
    757,889       57.19 %     736,012       59.94 %
           
Gross margin
    567,330       42.81 %     491,908       40.06 %
 
                               
Selling, general and administrative expenses
    416,580       31.43 %     382,181       31.12 %
           
 
                               
Operating income
    150,750       11.38 %     109,727       8.94 %
 
                               
Interest income
    (7,249 )     (0.55 %)     (2,122 )     (0.17 %)
Interest expense
    6,826       0.52 %     4,427       0.36 %
           
 
                               
Earnings before income taxes
    151,173       11.41 %     107,422       8.75 %
 
                               
Provision for income taxes
    54,922       4.14 %     36,253       2.95 %
           
 
                               
Net earnings
  $ 96,251       7.26 %   $ 71,169       5.80 %
           
 
                               
Net earnings per share:
                               
Basic
  $ 1.81             $ 1.32          
 
                           
Diluted
  $ 1.76             $ 1.28          
 
                           
 
                               
Weighted average common shares outstanding:
                               
Basic
    53,163               54,050          
 
                           
Diluted
    54,715               55,765          
 
                           

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(LOGO)   THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands)
(Unaudited)
                 
    October 28,     October 29,  
    2006     2005  
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 75,093     $ 27,645  
Short-term investments
    180,275       69,925  
Inventories
    481,885       465,719  
Other current assets
    53,835       48,396  
 
           
 
               
Total current assets
    791,088       611,685  
Property and equipment, net
    277,510       269,629  
Goodwill
    58,261       57,020  
Other assets, net
    71,586       60,764  
 
           
 
               
Total assets
  $ 1,198,445     $ 999,098  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Current liabilities
  $ 218,495     $ 228,381  
Long-term debt
    207,310       130,000  
Deferred taxes and other liabilities
    49,216       50,446  
Shareholders’ equity
    723,424       590,271  
 
           
 
               
Total liabilities and equity
  $ 1,198,445     $ 999,098  
 
           

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(LOGO)   THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
FOR THE NINE MONTHS ENDED
October 28, 2006 AND October 29, 2005

(In thousands)
                 
    Nine Months Ended  
    2006     2005  
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net earnings
  $ 96,251     $ 71,169  
Non-cash adjustments to net earnings:
               
Depreciation and amortization
    45,191       46,719  
Other
    17,398       12,251  
Changes in assets and liabilities
    (108,027 )     (77,996 )
 
           
 
               
Net cash provided by operating activities
    50,813       52,143  
 
           
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Capital expenditures
    (47,552 )     (52,109 )
Purchases of available-for-sale investments
    (197,920 )     (99,000 )
Proceeds from sales of available-for-sale investments
    80,420       29,075  
Other
    (913 )     (69 )
 
           
 
               
Net cash used in investing activities
    (165,965 )     (122,103 )
 
           
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Cash dividends paid
    (8,072 )      
Proceeds from issuance of common stock
    7,583       22,192  
Purchase of treasury stock
    (11,512 )     (90,280 )
Other
    1,161        
 
           
 
               
Net cash used in financing activities
    (10,840 )     (68,088 )
 
           
 
               
Effect of exchange rate changes
    859       685  
 
           
 
               
DECREASE IN CASH AND CASH EQUIVALENTS
    (125,133 )     (137,363 )
Balance at beginning of period
    200,226       165,008  
 
           
Balance at end of period
  $ 75,093     $ 27,645  
 
           

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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. Due to the effect of rounding, the sum of the individual per share amounts may not equal the total shown.
Non-GAAP Financial Measures (in thousands, except per share information)
                         
    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
    55,834               55,834  
 
                   
(1) The net earnings adjustments are as follows:
  a.   $2.886 million, net of tax, or $.05 diluted earnings per share in net losses from the Eddie Rodriguez stores and
 
  b.   $39 thousand, net of tax, related to stock based compensation.

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Non-GAAP Financial Measures (continued)
                         
    Three Months Ended June 30, 2005  
            (1)     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  
 
                   
                         
    Three Months Ended October 29, 2005  
            (2)     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  
 
                   
(1) The net earnings adjustments are as follows:
  a.   $3.379 million, net of tax, or $0.06 diluted earnings per share in net 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.
(2) The net earnings 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.

Page 11


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended January 28, 2006  
            (1)     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  
 
                   
                         
    Twelve Months Ended January 28, 2006  
            (2)     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 net earnings 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.
(2) The net earnings adjustments are as follows:
  a.   $6.265 million, net of tax, or $0.11 diluted earnings per share in net 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.

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Non-GAAP Financial Measures (continued)
                         
    Three Months Ended April 29, 2006  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 434,564     $     $ 434,564  
Cost of goods sold, including buying, distribution and occupancy costs
    251,735       (143 )     251,592  
 
                 
Gross margin
    182,829       143       182,972  
Selling, general and administrative expenses
    136,441       (1,485 )     134,956  
 
                 
Operating Income
    46,388       1,628       48,016  
Interest income
    (1,995 )           (1,995 )
Interest expense
    2,191             2,191  
 
                 
Earnings before income taxes
    46,192       1,628       47,820  
Provision for income taxes
    17,336       611       17,947  
 
                 
Net earnings
  $ 28,856     $ 1,017     $ 29,873  
 
                 
Net earnings per diluted share
  $ 0.53     $ 0.02     $ 0.55  
 
                 
Weighted average diluted common shares outstanding
    54,719               54,719  
 
                   
 
(1)   The adjustments are related to stock based compensation.
                         
    Three Months Ended July 29, 2006  
            (2)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 460,587     $     $ 460,587  
Cost of goods sold, including buying, distribution and occupancy costs
    261,464       (178 )     261,286  
 
                 
Gross margin
    199,123       178       199,301  
Selling, general and administrative expenses
    143,529       (1,542 )     141,987  
 
                 
Operating Income
    55,594       1,720       57,314  
Interest income
    (2,793 )           (2,793 )
Interest expense
    2,289             2,289  
 
                 
Earnings before income taxes
    56,098       1,720       57,818  
Provision for income taxes
    20,477       628       21,105  
 
                 
Net earnings
  $ 35,621     $ 1,092     $ 36,713  
 
                 
Net earnings per diluted share
  $ 0.65     $ 0.02     $ 0.67  
 
                 
Weighted average diluted common shares outstanding
    54,524               54,524  
 
                   
 
(2)   The adjustments are related to stock based compensation.

Page 13


 

Non-GAAP Financial Measures (continued)
                         
    Three Months Ended October 28, 2006  
            (1)     NON-GAAP  
    GAAP     NON-GAAP     Adjusted  
    Results     Adjustments     Results  
Net sales
  $ 430,068     $     $ 430,068  
Cost of goods sold, including buying, distribution and occupancy costs
    244,690       (178 )     244,512  
 
                 
Gross margin
    185,378       178       185,556  
Selling, general and administrative expenses
    136,610       (1,613 )     134,997  
 
                 
Operating Income
    48,768       1,791       50,559  
Interest income
    (2,461 )           (2,461 )
Interest expense
    2,346             2,346  
 
                 
Earnings before income taxes
    48,883       1,791       50,674  
Provision for income taxes
    17,109       627       17,736  
 
                 
Net earnings
  $ 31,774     $ 1,164     $ 32,938  
 
                 
Net earnings per diluted share
  $ 0.58     $ 0.02     $ 0.60  
 
                 
Weighted average diluted common shares outstanding
    54,903               54,903  
 
                   
 
(1)   The adjustments are related to stock based compensation.

Page 14