Men's Wearhouse Reports Fiscal 2012 Fourth Quarter And Full Year Results

   Men's Wearhouse Reports Fiscal 2012 Fourth Quarter And Full Year Results

- Q4 2012 GAAP diluted loss per share was $0.07, compares to prior year GAAP
diluted loss per share of $0.07 and adjusted loss per share of $0.05

- Full year 2012 GAAP diluted EPS was $2.55, compares to prior year GAAP
diluted EPS of $2.30 and adjusted diluted EPS of $2.38

- Engages Jefferies & Co. to evaluate strategic alternatives for K&G

- Announces new share repurchase program and planned credit facility amendment

- Provides annual guidance for fiscal year 2013

PR Newswire

HOUSTON, March 13, 2013

HOUSTON, March 13, 2013 /PRNewswire/ --The Men's Wearhouse (NYSE: MW) today
announced its consolidated financial results for the fiscal fourth quarter and
the full year ended February 2, 2013.

Total net sales for the 2012 fiscal fourth quarter increased 8.2% to $608.4
million from $562.2 million for the same period a year ago. Retail segment
sales for the quarter increased by 6.8% or $34.8 million and corporate apparel
sales increased by 21.5% or $11.5 million. For the full 2012 fiscal year, net
sales increased by 4.4% to $2,488.3 million, with a retail segment increase of
5.1% and a corporate apparel segment decrease of 1.7%.

The GAAP basis net loss for the 2012 fiscal fourth quarter was $3.4 million,
or $0.07 diluted loss per share, compared to a net loss of $3.8 million, or
$0.07 diluted loss per share, in the same period in 2011. Last year's fourth
quarter adjusted diluted loss per share was $0.05 after excluding $1.3 million
($0.9 million after tax or $0.02 per diluted share) in acquisition related
integration costs and $0.3 million ($0.2 million after tax or less than $0.01
per diluted share) for non-cash asset impairment charges.

For the full 2012 fiscal year, GAAP basis net earnings were $131.7 million, or
$2.55 diluted earnings per share, compared to net earnings of $120.6 million,
or $2.30 diluted earnings per share, for the 2011 fiscal year. On an adjusted
basis, fiscal year 2011 net earnings were $124.4 million or $2.38 adjusted
diluted earnings per share after excluding $3.8 million ($2.5 million after
tax or $0.05 per diluted share) in acquisition related integration costs and
$2.0 million ($1.3 million after tax or $0.03 per diluted share) for non-cash
asset impairment charges.

Doug Ewert, Men's Wearhouse president and chief executive officer, stated,
"Our fourth quarter started out with an unprecedented volume decline in
November which we described in our third quarter earnings release and
conference call. The balance of the fourth quarter improved over November
results; however, macro-economic conditions remained challenging for our
customers throughout the period, which resulted in fourth quarter and full
year results that were two cents below the low end of our guidance range
provided on December 5, 2012.

"Net sales at our core flagship brand Men's Wearhouse stores, which
represented 61% of our total fourth quarter sales, were up 9.1% over last
year's fourth quarter, and comparable store sales increased 1.0%, at the low
end of our guidance range for the quarter. Our higher margin tuxedo rental
revenues had an above guidance U.S. comparable store sales increase of 9.4% in
the fourth quarter, driven by increased unit rental rates and unit rentals.

"Moores, our retail brand in Canada, was 11% of our total sales mix in the
2012 fourth quarter and delivered a comparable store sales decrease of 5.5%,
below our expectations," continued Ewert. "K&G, with 16% of our total fourth
quarter sales, had a comparable store sales decrease of 5.7%, also below our
expectations. Sales at K&G were disappointing as customers did not respond to
our promotions and new marketing campaign as well as expected. Our Corporate
Apparel segment, which represented 11% of our total 2012 fourth quarter sales,
had a sales increase of 21.5% as managed account customer uniform sales
exceeded plan.

"Subsequent to year-end, our board and management have embarked upon a process
of reevaluating the Company's operating structure and capital allocation
program," added Ewert. "We believe that our core strength lies primarily in
our MW and Moores men's specialty apparel retailing. To better focus our
efforts on these core operations, we have engaged Jefferies & Co. to assist us
in evaluating strategic alternatives for our K&G operations.

"Additionally, the board has approved a new share repurchase program of $200
million, which amends and increases the Company's existing share repurchase
authorization. We had $45 million available in our prior repurchase program
and this action adds an additional $155 million for share repurchases by the
Company.

"We are also in the process of amending and restating our credit facility,
which we expect to complete by mid-April," continued Ewert. "Under the
amended facility, we will increase our revolving credit to $300 million, with
possible future increases to $450 million under an expansion feature, and
extend the maturity date to 2018. In addition, the amended facility will
provide for a $100 million term loan which will be repaid over five years,
with 10% payable annually in quarterly installments and the remainder due at
maturity. The other terms of the credit facility will remain substantially
similar to those included in our current facility. We currently have no debt
outstanding under the existing revolver other than letters of credit totaling
approximately $22.3 million, which will continue in place under the amended
facility.

"We believe these strategic and deliberate actions will better position the
Company for growth and will unlock value for our shareholders."

Net Sales Summaries
The following is a summary of net sales for fourth quarter and fiscal 2012.
The dollars shown are U.S. dollars in millions and due to rounded numbers may
not sum. The Moores' comparable store sales change is based on the Canadian
dollar.



Fourth Quarter Net Sales Summary – Fiscal 2012
                                          Net Sales    Comparable Store Sales
                                                       Change
                         Net Sales Change Current Year Current Year Prior Year
Total Retail Segment     6.8%     $34.8   $543.4
 Men's Wearhouse   9.1%     $31.2   $372.7       1.0%         9.3%
 K&G               (0.1%)   ($0.1)  $95.5        (5.7%)       (2.1%)
 Moores            4.0%     $2.6    $67.8        (5.5%)       (0.2%)
 MW Cleaners       16.3%    $1.0    $7.3
Corporate Apparel        21.5%    $11.5   $65.0
Segment
Total Company            8.2%     $46.3   $608.4





Year-To-Date Net Sales Summary – Fiscal 2012
                                          Net Sales    Comparable Store Sales
                                                       Change
                         Net Sales Change Current Year Current Year Prior Year
Total Retail Segment     5.1%     $109.7  $2,248.8
 Men's Wearhouse   7.4%     $109.4  $1,581.1     4.8%         9.1%
 K&G               (2.4%)   ($9.2)  $365.9       (4.3%)       3.6%
 Moores            2.3%     $6.3    $274.0       1.5%         4.5%
 MW Cleaners       12.6%    $3.1    $27.8
Corporate Apparel        (1.7%)   ($4.1)  $239.4
Segment
Total Company            4.4%     $105.6  $2,488.3



2013 GUIDANCE
The Company will implement a modification to its forward guidance practice
beginning with fiscal 2013 by giving annual guidance only. The Company will
provide specific financial related guidance and guidance around certain
elements which management believes will influence the annual results for the
full fiscal year.

Commenting on the Company's annual guidance, Ewert added, "We continue to
closely monitor our customers' reactions to continued macro-economic
uncertainties that dominate the headlines and, inevitably, their wallets and
spending patterns. Our annual guidance contemplates this but does not take
into consideration any share repurchases under the new share repurchase
program or any other actions that may result from our engagement of strategic
advisors noted in my comments."

The Company can offer no assurance that it will enter into any transaction in
the future, and no decision has been made to enter into a transaction at this
time. The Company does not intend to disclose further developments about the
review of strategic alternatives unless and until such time as its Board of
Directors has approved a specific course of action, or it otherwise deems
further disclosure is appropriate or required.

GAAP Diluted EPS
For the fiscal year, the Company expects GAAP diluted earnings per share in a
range of $2.70 to $2.80, an increase of 5.9% to 9.8% over the prior year
diluted earnings per share of $2.55 and an increase of 7.1% to 11.1% over the
prior year diluted earnings per share adjusted for the 53^rd week of $2.52.

Sales
Total sales are expected to increase 2.85% to 3.85%. Comparable store sales
are expected as follows (all comparable store sales growth is based on a
52-week comparable time period):

                         % of Total Sales             Comparable Store Sales
                         (approximate)                Growth
 Men's Wearhouse     65%                          +4% to +5%
-MW Tuxedo Rental                                    +5% to +6%
Revenues
 K&G                 13%                          -3% to -4%
 Moores              11%                          +1% to +2%

Corporate apparel sales are expected to increase 1.9% to 2.4% and are expected
to be approximately 9.5% of total sales. 

Gross Margin
Total gross margin by segment is expected as follows:

                              % Change       Basis Point Change to FY12
 Retail Margin            +2.9% to +4.2% flat to +10
 Corporate Apparel Margin +8.4% to 9.1%  +185 to +190

SG&A
Compared to FY12 on a 52 week basis, our FY13 total SG&A expense is expected
to increase 3.4% to 3.9% while decreasing 30 to 48 basis points as a
percentage of sales. The increase in FY13 as compared to FY12 on a 53 week
basis is expected to be 1.8% to 2.3% with a decrease of 37 to 55 basis points
as a percentage of sales. 

Other

Effective Tax Rate                           36%
Weighted Average Shares (millions)           51,505
Average Foreign Exchange Conversion Rates
- US Dollar to the Pound                    1.596
- US Dollar to the Canadian Dollar          1.000
Dilutive Effect of Participating Securities  $0.01
Capital Expenditures                         $100M - $108M



Store Activity

                        Store Openings Store Closings
Men's Wearhouse         32 - 36        -
Men's Wearhouse and Tux -              36
K&G                     1              4
Moores                  3              -



CONFERENCE CALL AND WEBCAST INFORMATION
At 9:00 a.m. Eastern time on Thursday, March 14, 2013, Company management will
host a conference call and real time webcast to review fiscal fourth quarter
and full year 2012 results and its outlook for fiscal 2013.

To access the conference call, dial 480-629-9692. 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 21,
2013 by calling 303-590-3030 and entering the access code of 4604189#, or a
webcast archive will be available free on the website for approximately 90
days.

STORE INFORMATION

                         February 2, 2013         January 28, 2012
                                          Sq. Ft.                  Sq. Ft.
                         Number of Stores         Number of Stores
                                          (000's)                  (000's)
Men's Wearhouse          638              3,650.0 607              3,462.7
Men's Wearhouse and Tux  288              395.1   343              474.6
Moores, Clothing for Men 120              763.5   117              741.7
K&G ^(a)                 97               2,299.3 99               2,351.2
Total                    1,143            7,107.9 1,166            7,030.2

^(a) 92 and 91 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 1,143 stores. The Men's Wearhouse, Moores and
K&G stores carry a full selection of men's designer, brand name and private
label suits, sport coats, furnishings and accessories and Men's Wearhouse and
Tux stores carry a limited selection. Most K&G stores carry a full selection
of women's apparel. Tuxedo rentals are available in the Men's Wearhouse,
Moores and Men's Wearhouse and Tux stores. Additionally, Men's Wearhouse
operates a global corporate apparel and workwear group consisting of Twin Hill
in the United States and Dimensions, Alexandra and Yaffy in the UK.

This press release contains forward-looking information. The forward-looking
statements are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
may be significantly impacted by various factors, including sensitivity to
economic conditions and consumer confidence, possibility of limited ability to
expand Men's Wearhouse stores, possibility that certain of our expansion
strategies may present greater risks, changes in foreign currency rates and
other factors described in the Company's annual report on Form 10-K for the
fiscal year ended January 28, 2012 and subsequent Forms 10-Q. For additional
information on Men's Wearhouse, please visit the Company's websites at
www.menswearhouse.com, www.kgstores.com, www.mooresclothing.com,
www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.

Contact:

Ken Dennard
Dennard- Lascar Associates
(713) 529-6600



THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)


FOR THE THREE MONTHS ENDED
February 2, 2013, AND January 28, 2012
(In thousands, except per share data)
                    Three Months Ended                   Variance
                             % of              % of                      Basis
                    2012     Sales    2011     Sales     Dollar  %       Points
Net sales:
 Retail    $456,063 74.96%   $430,314 76.55%    $25,749 5.98%   (1.59)
clothing product
 Tuxedo    49,193   8.09%    43,444   7.73%     5,749   13.23%  0.36
rental services

Alteration and      38,172   6.27%    34,898   6.21%     3,274   9.38%   0.07
other services
      543,428  89.32%   508,656  90.48%    34,772  6.84%   (1.16)
Total retail sales

Corporate apparel   65,000   10.68%   53,513   9.52%     11,487  21.47%  1.16
clothing product
sales
 608,428  100.00%  562,169  100.00%   46,259  8.23%   0.00
Total net sales
  365,283  60.04%   337,289  60.00%    27,994  8.30%   0.04
Total cost of sales
Gross margin (a):
 Retail      249,160  54.63%   234,594  54.52%    14,566  6.21%   0.12
clothing product
 Tuxedo      41,371   84.10%   36,553   84.14%    4,818   13.18%  (0.04)
rental services
 Alteration  8,032    21.04%   7,414    21.24%    618     8.34%   (0.20)
and other services
 Occupancy   (74,119) (13.64%) (68,294) (13.43%)  (5,825) (8.53%) (0.21)
costs

Total retail gross  224,444  41.30%   210,267  41.34%    14,177  6.74%   (0.04)
margin

Corporate apparel   18,701   28.77%   14,613   27.31%    4,088   27.98%  1.46
clothing product
margin
  243,145  39.96%   224,880  40.00%    18,265  8.12%   (0.04)
Total gross margin
Selling, general
and administrative  249,623  41.03%   232,125  41.29%    17,498  7.54%   (0.26)
expenses
Operating loss      (6,478)  (1.06%)  (7,245)  (1.29%)   767     10.59%  0.22
Net interest        (90)     (0.01%)  (241)    (0.04%)   151     62.66%  0.03
Loss before income  (6,568)  (1.08%)  (7,486)  (1.33%)   918     12.26%  0.25
taxes
Benefit for income  (3,412)  (0.56%)  (3,588)  (0.64%)   176     4.91%   0.08
taxes
Net loss including
noncontrolling      (3,156)  (0.52%)  (3,898)  (0.69%)   742     19.04%  0.17
interest
Net (earnings) loss
attributable to     (248)    (0.04%)  119      0.02%     (367)   308.40% 0.06
noncontrolling
interest
Net loss            $                                    $ 
attributable to     (3,404)  (0.56%)  $(3,779) (0.67%)   375    9.92%   0.11
common shareholders
Net loss per
diluted common      $                 $
share attributable  (0.07)           (0.07)
to common
shareholders
Weighted average
diluted common      50,829            51,297
shares outstanding:
(a) Gross margin percent of sales is calculated as a percentage of related
sales.







THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)




FOR THE TWELVE MONTHS ENDED
February 2, 2013, AND January 28, 2012
(In thousands, except per share data)
                    Twelve Months Ended                      Variance
                               % of                % of                        Basis
                    2012       Sales    2011       Sales     Dollar   %        Points
Net sales:
 Retail    $1,691,248 67.97%   $1,619,671 67.98%    $71,577  4.42%    (0.01)
clothing product
 Tuxedo    406,454    16.33%   376,857    15.82%    29,597   7.85%    0.52
rental services

Alteration and      151,147    6.07%    142,665    5.99%     8,482    5.95%    0.09
other services
Total  2,248,849  90.38%   2,139,193  89.78%    109,656  5.13%    0.60
retail sales

Corporate apparel 239,429    9.62%    243,491    10.22%    (4,062)  (1.67%)  (0.60)
clothing product
sales
 2,488,278  100.00%  2,382,684  100.00%   105,594  4.43%    0.00
Total net sales
 1,380,130  55.47%   1,333,757  55.98%    46,373   3.48%    (0.51)
Total cost of sales
Gross margin (a):
 Retail      935,200    55.30%   896,013    55.32%    39,187   4.37%    (0.02)
clothing product
 Tuxedo      349,887    86.08%   324,236    86.04%    25,651   7.91%    0.05
rental services
 Alteration  37,301     24.68%   34,829     24.41%    2,472    7.10%    0.27
and other services
 Occupancy   (283,382)  (12.60%) (273,300)  (12.78%)  (10,082) 3.69%    0.17
costs

Total retail     1,039,006  46.20%   981,778    45.89%    57,228   5.83%    0.31
gross margin

Corporate apparel 69,142     28.88%   67,149     27.58%    1,993    2.97%    1.30
clothing product
margin
  1,108,148  44.53%   1,048,927  44.02%    59,221   5.65%    0.51
Total gross margin
Selling, general
and administrative  909,580    36.55%   863,495    36.24%    46,085   5.34%    0.31
expenses
Operating income    198,568    7.98%    185,432    7.78%     13,136   7.08%    0.20
Net interest        (896)      -0.04%   (1,022)    -0.04%    126      (12.33%) 0.01
Earnings before     197,672    7.94%    184,410    7.74%     13,262   7.19%    0.20
income taxes
Provision for       65,609     2.64%    63,944     2.68%     1,665    2.60%    (0.05)
income taxes
Net earnings
including           132,063    5.31%    120,466    5.06%     11,597   9.63%    0.25
noncontrolling
interest
Net (earnings) loss
attributable to     (347)      (0.01%)  135        0.01%     (482)    357.04%  0.02
noncontrolling
interest
Net earnings        $ 
attributable to     131,716    5.29%    $ 120,601 5.06%     $11,115  9.22%    0.23
common shareholders
Net earnings per
diluted common      $               $   
share attributable  2.55                2.30
to common
shareholders
Weighted average
diluted common      51,026              51,692
shares outstanding:
(a) Gross margin percent of sales is calculated as a percentage of related sales.









THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)


                                                February 2,      January 28,
                                                2013             2012
ASSETS
Current assets:
 Cash and cash equivalents                      $         $      
                                                156,063          125,306
 Accounts receivable, net                       63,010           56,669
 Inventories                                    556,531          572,502
 Other current assets                           79,549           70,906
  Total current assets                        855,153          825,383
Property and equipment, net                     389,118          355,717
Tuxedo rental product, net                      126,825          99,814
Goodwill                                        87,835           87,782
Intangible assets, net                          32,442           33,711
Other assets                                    4,974            3,545
  Total assets                                $           $     
                                                1,496,347       1,405,952
LIABILITIES AND EQUITY
Current liabilities:
 Accounts payable                               $         $      
                                                123,983          123,445
 Accrued expenses and other current liabilities 164,344          154,395
 Income taxes payable                           5,856            3,435
  Total current liabilities                   294,183          281,275
Deferred taxes and other liabilities            92,929           92,858
  Total liabilities                           387,112          374,133
Equity:
 Preferred stock                                -                -
 Common stock                                   725              718
 Capital in excess of par                       386,254          362,735
 Retained earnings                              1,190,246        1,095,535
 Accumulated other comprehensive income         36,924           36,921
 Treasury stock, at cost                        (517,894)        (476,749)
  Total equity attributable to common         1,096,255        1,019,160
 shareholders
 Noncontrolling interest                        12,980           12,659
  Total equity                                1,109,235        1,031,819
  Total liabilities and equity               $           $     
                                                1,496,347       1,405,952









THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


FOR THE TWELVE MONTHS ENDED
February 2, 2013, AND January 28, 2012
(In thousands)
                                          Twelve Months Ended
                                          2012               2011
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net earnings including noncontrolling    $     132,063  $     120,466
 interest
 Non-cash adjustments to net earnings:
  Depreciation and amortization         84,979             75,968
  Tuxedo rental product amortization    28,315             28,858
  Other                                 22,168             47,227
 Changes in operating assets and          (41,795)           (109,722)
 liabilities
  Net cash provided by operating   225,730            162,797
 activities
CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                     (121,433)          (91,820)
 Proceeds from sales of property and      33                 59
 equipment
 Investment in trademark, tradenames and  (2,075)            -
 other assets
  Net cash used in investing       (123,475)          (91,761)
 activities
CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from issuance of common stock   8,457              8,354
 Cash dividends paid                      (37,084)           (25,098)
 Tax payments related to vested deferred  (4,421)            (2,955)
 stock units
 Excess tax benefits from share-based     2,997              1,903
 plans
 Repurchases of common stock              (41,296)           (63,988)
  Net cash used in financing       (71,347)           (81,784)
 activities
 Effect of exchange rate changes          (151)              (317)
INCREASE (DECREASE) IN CASH AND CASH      30,757             (11,065)
EQUIVALENTS
 Balance at beginning of period           125,306            136,371
 Balance at end of period                 $     156,063  $     125,306





SOURCE Men's Wearhouse

Website: http://www.menswearhouse.com
 
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