EX-99.1 3 h10804exv99w1.txt PRESS RELEASE DATED NOVEMBER 19, 2003 EXHIBIT 99.1 THE MEN'S WEARHOUSE, INC. NEWS RELEASE MEN'S WEARHOUSE REPORTS THIRD QUARTER 2003 DILUTED EARNINGS PER SHARE INCREASED 109% COMPANY INCREASES FOURTH QUARTER REVENUE AND EPS GUIDANCE HOUSTON - November 19, 2003--The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the third quarter ended November 1, 2003. Third Quarter Ended November 1, 2003 o Net sales for the third quarter ended November 1, 2003 increased 10.3% to $322.6 million from $292.5 million for the same period a year ago. o U.S. comparable store sales for the quarter increased 9.8% and Canadian comparable store sales decreased 5.2% when compared to the same period a year ago. o Net earnings were $9.1 million, or $0.23 diluted earnings per share, for the quarter, compared to net earnings of $4.3 million, or $0.11 diluted earnings per share, in the same period a year ago. Year-to-Date Ended November 1, 2003 o Net sales for the nine months ended November 1, 2003 increased 7.2% to $970.0 million from $904.9 million for the same period a year ago. o U.S. comparable store sales for the nine months increased 6.2% and Canadian comparable store sales decreased 5.6% when compared to the same period a year ago. o Net earnings were $31.5 million, or $0.79 diluted earnings per share, for the nine months, compared to net earnings of $22.5 million, or $0.55 diluted earnings per share, in the same period a year ago. -more- STORE INFORMATION
NOVEMBER 1, 2003 NOVEMBER 2, 2002 FEBRUARY 1, 2003 ---------------------- ----------------------- ----------------------- NUMBER OF SQ. FT. NUMBER OF SQ. FT. NUMBER OF SQ. FT. STORES (000'S) STORES (000'S) STORES (000'S) -------------------------- ----------- ---------- ----------- ----------- ----------- ----------- Men's Wearhouse 504 2,750.4 506 2,736.3 505 2,743.8 -------------------------- ----------- ---------- ----------- ----------- ----------- ----------- Moores, Clothing for Men 114 700.1 114 699.1 114 699.1 -------------------------- ----------- ---------- ----------- ----------- ----------- ----------- K&G (A) 71 1,626.3 72 1,527.1 70 1,499.7 -------------------------- ----------- ---------- ----------- ----------- ----------- ----------- TOTAL 689 5,076.8 692 4,962.5 689 4,942.6
(A) 30, 25 and 24 stores, respectively, offering women's apparel. George Zimmer, Men's Wearhouse founder and chief executive officer, stated, "We are pleased with our performance in the third quarter as traffic levels accelerated over the second quarter and our suit comparable unit trends at our TMW brand were again notably strong." FISCAL 2003 GUIDANCE o NET SALES The company expects its fourth quarter net sales to be in the range of $430 million to $433 million, an increase of 10.3% to 11.0%. The 52-week net sales are expected to be in the range of $1.400 billion to $1.403 billion, an increase of 8.1% to 8.3%. U.S. comparable store sales growth for the fourth quarter and the full year is expected to be positive high single digit and positive mid single digit, respectively. Canadian comparable store sales for the fourth quarter and full year are expected to be negative low single digit and negative mid single digit, respectively. o GROSS MARGIN Gross margin, as a percentage of sales, for the fourth quarter and full year is expected to be in the range of 38.0% to 38.1%, and approximately 36.9%, respectively. o S G & A MARGIN Selling, general and administrative expenses, as a percentage of sales, for the fourth quarter and full year are anticipated to be in the range of 29.4% to 29.6%, and 30.5% to 30.6%, respectively. -more- o EFFECTIVE TAX RATE AT APPROXIMATELY 37.25%. o DILUTED EARNINGS PER SHARE ------------------------------------------ Fourth Quarter $0.58 - $0.60 ------------------------------------------ Fiscal Year $1.37 - $1.39 ------------------------------------------ Fiscal year amount includes approximately $0.01 related to the first quarter recognition of a deferred gain, store closing costs, and the write-off of technology assets. o STORE GROWTH The company anticipates the following net store opening activity for the remainder of the year: FISCAL YEAR 2003 1st Q 2nd Q 3rd Q 4th Q Total Actual Actual Actual ----------------------------------------------------------------------------- Men's Wearhouse 0 (2) 1 5 4 ----------------------------------------------------------------------------- K&G (5) (1) 7 2 3 ----------------------------------------------------------------------------- Total (5) (3) 8 7 7 ----------------------------------------------------------------------------- CONFERENCE CALL AND WEBCAST INFORMATION At 5:30 p.m. Eastern Time today, company management will host a conference call and real-time webcast to review the financial results of The Men's Wearhouse, Inc.'s third quarter. 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 November 26th by calling 303-590-3000 and entering the access code of 559004, or a webcast archive will be available free on the website for approximately 90 days. Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 689 stores. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories. The company also operates the second largest manufacturing facility of men's suits, sport coats and slacks in Canada, most of which is used to supply the Moores stores. For additional information on Men's Wearhouse, please visit the company's website at www.menswearhouse.com. -more- 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, 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 February 1, 2003. CONTACT: Claudia Pruitt, Men's Wearhouse (713) 592-7200 Ken Dennard, DRG&E (713) 529-6600 - tables to follow - THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE NINE MONTHS ENDED NOVEMBER 1, 2003 AND NOVEMBER 2, 2002 (In thousands, except per share data)
NINE MONTHS ENDED --------------------------------------------------- % OF % OF 2003 SALES 2002 SALES --------------------------------------------------- Net sales $ 970,027 100.00% $ 904,946 100.00% Cost of goods sold, including buying and occupancy costs 617,434 63.65% 595,800 65.84% --------------------------------------------------- Gross margin 352,593 36.35% 309,146 34.16% Selling, general and admin expenses 300,913 31.02% 272,101 30.07% --------------------------------------------------- Operating income 51,680 5.33% 37,045 4.09% Interest expense, net 1,458 0.15% 837 0.09% --------------------------------------------------- Earnings before income taxes 50,222 5.18% 36,208 4.00% Provision for income taxes 18,707 1.93% 13,668 1.51% --------------------------------------------------- Net earnings $ 31,515 3.25% $ 22,540 2.49% =================================================== Net earnings per basic share $ 0.80 $ 0.55 ========== ========== Net earnings per diluted share $ 0.79 $ 0.55 =========== ========== Weighted average shares outstanding: Basic 39,329 40,881 =========== ========== Diluted 39,775 41,231 =========== ==========
THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE MONTHS ENDED NOVEMBER 1, 2003 AND NOVEMBER 2, 2002 (In thousands, except per share data)
THREE MONTHS ENDED --------------------------------------------------- % OF % OF 2003 SALES 2002 SALES --------------------------------------------------- Net sales $ 322,613 100.00% $ 292,515 100.00% Cost of goods sold, including buying and occupancy costs 204,175 63.29% 194,575 66.52% --------------------------------------------------- Gross margin 118,438 36.71% 97,940 33.48% Selling, general and admin expenses 103,344 32.03% 90,673 31.00% --------------------------------------------------- Operating income 15,094 4.68% 7,267 2.48% Interest expense, net 664 0.21% 384 0.13% --------------------------------------------------- Earnings before income taxes 14,430 4.47% 6,883 2.35% Provision for income taxes 5,375 1.67% 2,598 0.89% --------------------------------------------------- Net earnings $ 9,055 2.81% $ 4,285 1.46% =================================================== Net earnings per basic share $ 0.23 $ 0.11 ========= ========== Net earnings per diluted share $ 0.23 $ 0.11 ========= ========== Weighted average shares outstanding: Basic 38,927 40,479 ========= ========== Diluted 39,785 40,586 ========= ==========
THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
NOVEMBER 1, NOVEMBER 2, 2003 2002 ------------ ------------ ASSETS Current assets: Cash $ 92,845 $ 18,355 Inventory 423,073 392,254 Other current assets 41,154 49,283 ------------ ------------ Total current assets 557,072 459,892 Property and equipment, net 211,187 211,421 Other assets 77,147 55,689 ------------ ------------ Total assets $ 845,406 $ 727,002 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $ 176,996 $ 154,740 Long term debt 130,000 36,714 Deferred taxes and other liabilities 29,140 25,191 Shareholders' equity 509,270 510,357 ------------ ------------ Total liabilities and equity $ 845,406 $ 727,002 ============ ============