Texas (State or other jurisdiction of incorporation) |
1-16097 (Commission File Number) |
74-1790172 (IRS Employer Identification No.) |
6380 Rogerdale Road Houston, Texas (Address of principal executive offices) |
77072 (Zip Code) |
99.1 | Press Release of the Company dated March 9, 2011. |
THE MENS WEARHOUSE, INC. (Registrant) |
||||
Date: March 9, 2011 | By: | /s/ Diana M. Wilson | ||
Diana M. Wilson | ||||
Senior Vice President and Chief Accounting Officer |
Exhibit | ||
Number | Description | |
99.1
|
Press Release of The Mens Wearhouse, Inc. dated March 9, 2011. |
News Release | ||
Contacts: | ||
For Immediate Release |
||
Neill Davis, Mens Wearhouse (281) 776-7000 Ken Dennard, DRG&L (713) 529-6600 |
| Q4 2010 GAAP diluted loss per share was $0.27 and adjusted diluted loss per share was $0.19. | |
| Fiscal 2010 GAAP diluted earnings per share were $1.27 and adjusted diluted earnings per share were $1.47. | |
| Company provides guidance for first quarter and full year of fiscal 2011 | |
| Conference call at 5:00 pm Eastern today |
Comparable Store Sales | ||||||||||||||||||||
U.S. dollars, in millions | Total Sales | Change % | ||||||||||||||||||
Current Year | Prior Year | Change % | Current Year | Prior Year | ||||||||||||||||
Total Company |
$ | 542.1 | (a) | $ | 457.2 | (a) | 18.6 | % | ||||||||||||
Total Retail Segment |
$ | 479.7 | $ | 454.2 | 5.6 | % | ||||||||||||||
MW |
$ | 311.1 | $ | 294.3 | 5.7 | % | 4.3 | %(c) | -7.1 | %(c) | ||||||||||
K&G |
$ | 96.4 | $ | 92.7 | 4.0 | % | 4.5 | % | -5.0 | % | ||||||||||
Moores Canada |
$ | 66.3 | $ | 61.7 | 7.3 | % | 2.3 | %(b) | 1.9 | %(b) | ||||||||||
Corporate Apparel Segment |
$ | 62.5 | $ | 3.1 | 1,943.7 | % |
Comparable Store Sales | ||||||||||||||||||||
U.S. dollars, in millions | Total Sales | Change % | ||||||||||||||||||
Current Year | Prior Year | Change % | Current Year | Prior Year | ||||||||||||||||
Total Company |
$ | 2,102.7 | (a) | $ | 1,909.6 | (a) | 10.1 | % | ||||||||||||
Total Retail Segment |
$ | 1,976.4 | $ | 1,896.1 | 4.2 | % | ||||||||||||||
MW |
$ | 1,345.9 | $ | 1,281.8 | 5.0 | % | 4.7 | %(c) | -4.0 | %(c) | ||||||||||
K&G |
$ | 360.3 | $ | 370.1 | -2.7 | % | -1.5 | % | -1.9 | % | ||||||||||
Moores Canada |
$ | 246.7 | $ | 222.1 | 11.1 | % | 2.2 | %(b) | -0.9 | %(b) | ||||||||||
Corporate Apparel Segment |
$ | 126.3 | $ | 13.5 | 837.4 | % |
(a) | Due to rounded numbers, total Company may not sum. | |
(b) | Comparable store sales change is based on the Canadian dollar. | |
(c) | Does not include ecommerce sales. |
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Guidance | Guidance | |||||||
FY 2011 | 1Q FY 2011 | |||||||
Total Sales Increase |
8% to 9% (1) | 14% to 15% (1) | ||||||
Comparable Store Sales Growth (2) |
||||||||
MW |
+2% to +4% | +4% to +5% | ||||||
K&G |
(1%) to (2%) | (1%) to (2%) | ||||||
Moores |
Flat to +1% | (2%) to (3%) | ||||||
Gross Profit Margin |
42.25% to 42.45% (3) | 40.60% to 40.75% (3) | ||||||
S G & A (as % of Sales) |
35.75% to 35.95% (4) | 36.15% to 36.30% (4) | ||||||
Effective Tax Rate |
35.25 | % | 37.00 | % | ||||
Weighted Average Shares
Outstanding (millions) |
52.6 | 52.6 | ||||||
GAAP EPS |
$ | 1.71 to $1.81 | $ | 0.26 to $0.29 | ||||
Adjusted EPS |
$ | 1.75 to $1.85 | (4) | $ | 0.27 to $0.30 | (4) | ||
Foreign Exchange Conversion (avg.) |
||||||||
US Dollar to GBP |
1.59 | 1.59 | ||||||
US Dollar to Canadian Dollar |
1.00 | 1.00 |
1. | Includes US$220 million for full year FY 2011 and US$55 million for 1Q FY 2011 of sales from acquired operations of Dimensions and Alexandra. | |
2. | Includes an assumed comparable store increase in tuxedo rental revenues of 7% to 8% for the full year FY 2011 and a 1% to 2% increase in 1Q FY 2011. | |
3. | Occupancy costs are expected to be flat for full year FY 2011 and decrease low single digit for 1Q FY 2011. | |
4. | Excludes acquisition integration costs. |
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January 29, 2011 | January 30, 2010 | |||||||||||||||
Number | Sq. Ft. | Number | Sq. Ft. | |||||||||||||
of Stores | (000s) | of Stores | (000s) | |||||||||||||
Mens Wearhouse |
585 | 3,319.0 | 581 | 3,284.4 | ||||||||||||
Mens Wearhouse and Tux |
388 | 535.7 | 454 | 623.4 | ||||||||||||
Moores, Clothing for Men |
117 | 737.8 | 117 | 734.6 | ||||||||||||
K&G (a) |
102 | 2,394.1 | 107 | 2,475.6 | ||||||||||||
Total |
1,192 | 6,986.6 | 1,259 | 7,118.0 |
(a) | 91 and 94 stores, respectively, offering womens apparel. |
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THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS In thousands, except per share data (Unaudited) |
Three Months Ended | Variance | |||||||||||||||||||||||||||
% of | % of | Basis | ||||||||||||||||||||||||||
2010 | Sales | 2009 | Sales | Dollar | % | Points | ||||||||||||||||||||||
(as adjusted) (a) | ||||||||||||||||||||||||||||
Net sales: |
||||||||||||||||||||||||||||
Clothing product |
$ | 407,953 | 75.25 | % | $ | 387,084 | 84.66 | % | $ | 20,869 | 5.39 | % | (9.41 | ) | ||||||||||||||
Tuxedo rental services |
38,356 | 7.08 | % | 35,380 | 7.74 | % | 2,976 | 8.41 | % | (0.66 | ) | |||||||||||||||||
Alteration and other services |
33,343 | 6.15 | % | 31,698 | 6.93 | % | 1,645 | 5.19 | % | (0.78 | ) | |||||||||||||||||
Retail segment sales |
479,652 | 88.48 | % | 454,162 | 99.33 | % | 25,490 | 5.61 | % | (10.85 | ) | |||||||||||||||||
Corporate apparel segment sales |
62,454 | 11.52 | % | 3,056 | 0.67 | % | 59,398 | 1,943.65 | % | 10.85 | ||||||||||||||||||
Total net sales |
542,106 | 100.00 | % | 457,218 | 100.00 | % | 84,888 | 18.57 | % | 0.00 | ||||||||||||||||||
Total cost of sales |
339,947 | 62.71 | % | 287,688 | 62.92 | % | 52,259 | 18.17 | % | (0.21 | ) | |||||||||||||||||
Gross margin (b): |
||||||||||||||||||||||||||||
Clothing margin |
211,049 | 51.73 | % | 204,995 | 52.96 | % | 6,054 | 2.95 | % | (1.23 | ) | |||||||||||||||||
Tuxedo margin |
33,135 | 86.39 | % | 27,967 | 79.05 | % | 5,168 | 18.48 | % | 7.34 | ||||||||||||||||||
Alteration and other services margin |
8,325 | 24.97 | % | 7,985 | 25.19 | % | 340 | 4.26 | % | (0.22 | ) | |||||||||||||||||
Occupancy costs |
(68,216 | ) | (14.22 | %) | (71,644 | ) | (15.77 | %) | 3,428 | 4.78 | % | 1.55 | ||||||||||||||||
Retail segment margin |
184,293 | 38.42 | % | 169,303 | 37.28 | % | 14,990 | 8.85 | % | 1.14 | ||||||||||||||||||
Corporate apparel segment margin |
17,866 | 28.61 | % | 227 | 7.43 | % | 17,639 | 7,770.48 | % | 21.18 | ||||||||||||||||||
Gross margin |
202,159 | 37.29 | % | 169,530 | 37.08 | % | 32,629 | 19.25 | % | 0.21 | ||||||||||||||||||
Selling, general and administrative expenses |
225,356 | 41.57 | % | 203,818 | 44.58 | % | 21,538 | 10.57 | % | (3.01 | ) | |||||||||||||||||
Operating loss |
(23,197 | ) | (4.28 | %) | (34,288 | ) | (7.50 | %) | 11,091 | 32.35 | % | 3.22 | ||||||||||||||||
Net interest |
(367 | ) | (0.07 | %) | (153 | ) | (0.03 | %) | (214 | ) | (139.87 | %) | 0.03 | |||||||||||||||
Loss before income taxes |
(23,564 | ) | (4.35 | %) | (34,441 | ) | (7.53 | %) | 10,877 | 31.58 | % | 3.19 | ||||||||||||||||
Benefit from income taxes |
(9,370 | ) | (1.73 | %) | (15,688 | ) | (3.43 | %) | 6,318 | 40.27 | % | 1.70 | ||||||||||||||||
Net loss including noncontrolling interest |
(14,194 | ) | (2.62 | %) | (18,753 | ) | (4.10 | %) | 4,559 | 24.31 | % | 1.48 | ||||||||||||||||
Less: Net loss attributable to noncontrolling interest |
(108 | ) | (0.02 | %) | | 0.00 | % | (108 | ) | 100.00 | % | (0.02 | ) | |||||||||||||||
Net loss attributable to common shareholders |
$ | (14,086 | ) | (2.60 | %) | $ | (18,753 | ) | (4.10 | %) | $ | 4,667 | 24.89 | % | 1.50 | |||||||||||||
Net loss per diluted common share attributable to
common shareholders |
$ | (0.27 | ) | $ | (0.36 | ) | ||||||||||||||||||||||
Weighted average diluted common shares outstanding: |
52,819 | 52,297 | ||||||||||||||||||||||||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. | |
(b) | Gross margin percent of sales is calculated as a percentage of related sales. |
Page 7
THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) |
Twelve Months Ended | Variance | |||||||||||||||||||||||||||
% of | % of | Basis | ||||||||||||||||||||||||||
2010 | Sales | 2009 | Sales | Dollar | % | Points | ||||||||||||||||||||||
(as adjusted) (a) | ||||||||||||||||||||||||||||
Net sales: |
||||||||||||||||||||||||||||
Clothing product |
$ | 1,480,492 | 70.41 | % | $ | 1,433,913 | 75.09 | % | $ | 46,579 | 3.25 | % | (4.68 | ) | ||||||||||||||
Tuxedo rental services |
364,269 | 17.32 | % | 334,068 | 17.49 | % | 30,201 | 9.04 | % | (0.17 | ) | |||||||||||||||||
Alteration and other services |
131,605 | 6.26 | % | 128,121 | 6.71 | % | 3,484 | 2.72 | % | (0.45 | ) | |||||||||||||||||
Retail segment sales |
1,976,366 | 93.99 | % | 1,896,102 | 99.29 | % | 80,264 | 4.23 | % | (5.30 | ) | |||||||||||||||||
Corporate apparel segment sales |
126,298 | 6.01 | % | 13,473 | 0.71 | % | 112,825 | 837.42 | % | 5.30 | ||||||||||||||||||
Total net sales |
2,102,664 | 100.00 | % | 1,909,575 | 100.00 | % | 193,089 | 10.11 | % | 0.00 | ||||||||||||||||||
Total cost of sales |
1,204,231 | 57.27 | % | 1,110,677 | 58.16 | % | 93,554 | 8.42 | % | (0.89 | ) | |||||||||||||||||
Gross margin (b): |
||||||||||||||||||||||||||||
Clothing margin |
798,675 | 53.95 | % | 775,882 | 54.11 | % | 22,793 | 2.94 | % | (0.16 | ) | |||||||||||||||||
Tuxedo margin |
308,202 | 84.61 | % | 276,651 | 82.81 | % | 31,551 | 11.40 | % | 1.80 | ||||||||||||||||||
Alteration and other services margin |
33,479 | 25.44 | % | 33,532 | 26.17 | % | (53 | ) | (0.16 | %) | (0.73 | ) | ||||||||||||||||
Occupancy costs |
(276,688 | ) | (14.00 | %) | (289,672 | ) | (15.28 | %) | 12,984 | 4.48 | % | 1.28 | ||||||||||||||||
Retail segment margin |
863,668 | 43.70 | % | 796,393 | 42.00 | % | 67,275 | 8.45 | % | 1.70 | ||||||||||||||||||
Corporate apparel segment margin |
34,765 | 27.53 | % | 2,505 | 18.59 | % | 32,260 | 1,287.82 | % | 8.93 | ||||||||||||||||||
Gross margin |
898,433 | 42.73 | % | 798,898 | 41.84 | % | 99,535 | 12.46 | % | 0.89 | ||||||||||||||||||
Selling, general and administrative expenses |
796,762 | 37.89 | % | 729,522 | 38.20 | % | 67,240 | 9.22 | % | (0.31 | ) | |||||||||||||||||
Operating income |
101,671 | 4.84 | % | 69,376 | 3.63 | % | 32,295 | 46.55 | % | 1.20 | ||||||||||||||||||
Net interest |
(1,141 | ) | (0.05 | %) | (332 | ) | (0.02 | %) | (809 | ) | (243.67 | %) | 0.04 | |||||||||||||||
Earnings before income taxes |
100,530 | 4.78 | % | 69,044 | 3.62 | % | 31,486 | 45.60 | % | 1.17 | ||||||||||||||||||
Provision for income taxes |
32,852 | 1.56 | % | 22,829 | 1.20 | % | 10,023 | 43.90 | % | 0.37 | ||||||||||||||||||
Net earnings including noncontrolling interest |
67,678 | 3.22 | % | 46,215 | 2.42 | % | 21,463 | 46.44 | % | 0.80 | ||||||||||||||||||
Less: Net loss attributable to
noncontrolling interest |
(19 | ) | 0.00 | % | | 0.00 | % | (19 | ) | 100.00 | % | 0.00 | ||||||||||||||||
Net earnings attributable to common
shareholders |
$ | 67,697 | 3.22 | % | $ | 46,215 | 2.42 | % | $ | 21,482 | 46.48 | % | 0.80 | |||||||||||||||
Net earnings per diluted common share
attributable to common shareholders (c) |
$ | 1.27 | $ | 0.88 | ||||||||||||||||||||||||
Weighted average diluted common shares
outstanding: |
52,853 | 52,280 | ||||||||||||||||||||||||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. | |
(b) | Gross margin percent of sales is calculated as a percentage of related sales. | |
(c) | Calculated based on net earnings less net earnings allocated to participating securities. |
Page 8
THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
January 29, | January 30, | |||||||
2011 | 2010 | |||||||
(as adjusted) (a) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 136,371 | $ | 186,018 | ||||
Accounts receivable, net |
60,607 | 16,745 | ||||||
Inventories |
486,499 | 434,881 | ||||||
Other current assets |
80,531 | 72,732 | ||||||
Total current assets |
764,008 | 710,376 | ||||||
Property and equipment, net |
332,611 | 344,746 | ||||||
Tuxedo rental product, net |
89,465 | 102,479 | ||||||
Goodwill |
87,994 | 59,414 | ||||||
Intangible assets, net |
37,348 | 4,287 | ||||||
Other assets |
8,892 | 12,850 | ||||||
Total assets |
$ | 1,320,318 | $ | 1,234,152 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 123,881 | $ | 83,052 | ||||
Accrued expenses and other current liabilities |
139,640 | 117,047 | ||||||
Income taxes payable |
3,135 | 23,936 | ||||||
Total current liabilities |
266,656 | 224,035 | ||||||
Long-term debt |
| 43,491 | ||||||
Deferred taxes and other liabilities |
69,809 | 62,236 | ||||||
Total liabilities |
336,465 | 329,762 | ||||||
Equity: |
||||||||
Preferred stock |
| | ||||||
Common stock |
710 | 705 | ||||||
Capital in excess of par |
341,663 | 327,742 | ||||||
Retained earnings |
1,002,975 | 956,032 | ||||||
Accumulated other comprehensive income |
38,366 | 32,537 | ||||||
Treasury stock, at cost |
(412,761 | ) | (412,626 | ) | ||||
Total equity attributable to common shareholders |
970,953 | 904,390 | ||||||
Noncontrolling interest |
12,900 | | ||||||
Total equity |
983,853 | 904,390 | ||||||
Total liabilities and equity |
$ | 1,320,318 | $ | 1,234,152 | ||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. |
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THE MENS WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
Twelve Months Ended | ||||||||
2010 | 2009 | |||||||
(as adjusted) (a) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings including noncontrolling interest |
$ | 67,678 | $ | 46,215 | ||||
Non-cash adjustments to net earnings: |
||||||||
Depreciation and amortization |
75,998 | 86,090 | ||||||
Tuxedo rental product amortization |
33,485 | 37,184 | ||||||
Other |
28,074 | 3,167 | ||||||
Changes in assets and liabilities |
(35,288 | ) | (9,501 | ) | ||||
Net cash provided by operating activities |
169,947 | 163,155 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Capital expenditures |
(58,868 | ) | (56,912 | ) | ||||
Acquisition of businesses, net of cash |
(97,786 | ) | | |||||
Proceeds from sales of available-for-sale investments |
| 19,410 | ||||||
Proceeds from sales of property and equipment |
76 | 797 | ||||||
Net cash used in investing activities |
(156,578 | ) | (36,705 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from issuance of common stock |
3,900 | 4,106 | ||||||
Payments on revolving credit facility |
| (25,000 | ) | |||||
Payments on Canadian term loan |
(46,738 | ) | | |||||
Cash dividends paid |
(19,111 | ) | (14,722 | ) | ||||
Deferred financing costs |
(1,577 | ) | | |||||
Tax payments related to vested deferred stock units |
(2,748 | ) | (1,634 | ) | ||||
Excess tax benefits from share-based plans |
1,107 | 392 | ||||||
Purchase of treasury stock |
(144 | ) | (90 | ) | ||||
Net cash used in financing activities |
(65,311 | ) | (36,948 | ) | ||||
Effect of exchange rate changes |
2,295 | 9,104 | ||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(49,647 | ) | 98,606 | |||||
Balance at beginning of period |
186,018 | 87,412 | ||||||
Balance at end of period |
$ | 136,371 | $ | 186,018 | ||||
(a) | Results have been adjusted for the change in inventory valuation method used by our K&G brand from the retail inventory method to the average cost method during the third quarter of fiscal 2010. The cumulative effect of this change in accounting principle was recorded retrospectively as of February 1, 2009. |
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