EX-99.1 3 h08595exv99w1.txt PRESS RELEASE DATED AUGUST 20, 2003 EXHIBIT 99.1 THE MEN'S WEARHOUSE, INC. (THE MEN'S WEARHOUSE, INC. LOGO) NEWS RELEASE FOR IMMEDIATE RELEASE MEN'S WEARHOUSE REPORTS SECOND QUARTER 2003 DILUTED EARNINGS PER SHARE INCREASED 53% COMPANY UPS OUTLOOK FOR 2003 HOUSTON - August 20, 2003--The Men's Wearhouse (NYSE: MW) today announced its consolidated financial results for the second quarter ended August 2, 2003. Second Quarter Ended August 2, 2003 o Net sales for the second quarter ended August 2, 2003 increased 8.3% to $334.3 million from $308.6 million for the same period a year ago. o U.S. comparable store sales for the quarter increased 8.1% and Canadian comparable store sales decreased 3.8% when compared to the same period a year ago. o Net earnings were $11.4 million, or $0.29 diluted earnings per share, for the quarter, compared to net earnings of $7.8 million, or $0.19 diluted earnings per share, in the same period a year ago. Year-to-Date Ended August 2, 2003 o Net sales for the six months ended August 2, 2003 increased 5.7% to $647.4 million from $612.4 million for the same period a year ago. o U.S. comparable store sales for the six months increased 4.5% and Canadian comparable store sales decreased 5.8% when compared to the same period a year ago. o Net earnings were $22.5 million, or $0.56 diluted earnings per share, for the six months, compared to net earnings of $18.3 million, or $0.44 diluted earnings per share, in the same period a year ago. STORE INFORMATION
AUGUST 2, 2003 AUGUST 3, 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 503 2,742.8 502 2,708.0 505 2,743.8 -------------------------- ----------- ---------- ----------- ---------- ----------- ---------- Moores, Clothing for Men 114 700.0 113 692.0 114 699.1 -------------------------- ----------- ---------- ----------- ---------- ----------- ---------- K&G (A) 64 1,437.4 71 1,482.1 70 1,499.7 -------------------------- ----------- ---------- ----------- ---------- ----------- ---------- TOTAL 681 4,880.2 686 4,882.1 689 4,942.6
(A) 25, 23 and 24 stores, respectively, offering women's apparel. George Zimmer, Men's Wearhouse founder and chief executive officer, stated, "We are very pleased with our performance in the second quarter, which resulted in a 53% increase in diluted earnings per share over the prior year quarter and 12% ahead of our most recent guidance. Our suit unit comparable trends were again notably strong and our tuxedo rental business contributed to increased margins in the quarter. As a result, we are raising guidance for revenues and earnings for the remainder of the year." FISCAL 2003 GUIDANCE o NET SALES The company expects its third quarter net sales to be in the range of $319 million to $321 million, an increase of 9.1% to 9.7%. The fourth quarter net sales are expected to be in the range of $426 to $430 million, an increase of 9.2% to 10.2%. The 52-week net sales are expected to be in the range of $1.392 billion to $1.398 billion, an increase of 7.5% to 8.0%. U.S. comparable store sales growth for the third quarter is expected to be positive high single digit, and the fourth quarter and full year are both expected to be positive mid single digit. Canadian comparable store sales for the third quarter, fourth quarter and full year are expected to be flat, positive low single digit and negative low single digit, respectively. o GROSS MARGIN Gross margin, as a percentage of sales, for the third quarter, fourth quarter and full year is expected to be in the range of 35.2% to 35.7%, 36.9% to 37.4%, and 35.5% to 36.5%, respectively. o S G & A MARGIN Selling, general and administrative expenses, as a percentage of sales, for the third quarter, fourth quarter and full year are anticipated to be in the range of 31.8% to 32.3%, 28.3% to 28.8%, and 29.4% to 30.4%, respectively. o EFFECTIVE TAX RATE AT APPROXIMATELY 37.25%. o DILUTED EARNINGS PER SHARE Third Quarter $0.16 - $0.17 Fourth Quarter $0.57 - $0.58 Fiscal Year $1.30 - $1.32
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 Actual Actual 3rd Q 4th Q Total ----------------------------- ------------- -------------- ------------- -------------- ------------- Men's Wearhouse 0 (2) 1 8 7 ----------------------------- ------------- -------------- ------------- -------------- ------------- K&G (5) (1) 7 2 3 ----------------------------- ------------- -------------- ------------- -------------- ------------- Total (5) (3) 8 10 10 ----------------------------- ------------- -------------- ------------- -------------- -------------
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 second quarter. To access the conference call, dial 303-262-2141. 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 August 27th by calling 303-590-3000 and entering the access code of 548658, 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 681 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. 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. LOGO) THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE SIX MONTHS ENDED AUGUST 2, 2003 AND AUGUST 3, 2002 (In thousands, except per share data)
SIX MONTHS ENDED ---------------------------------------------------- % OF % OF 2003 SALES 2002 SALES -------- -------- -------- -------- Net sales $647,414 100.00% $612,431 100.00% Cost of goods sold, including buying and occupancy costs 413,259 63.83% 401,225 65.51% -------- -------- -------- -------- Gross margin 234,155 36.17% 211,206 34.49% Selling, general and administrative expenses 197,569 30.52% 181,428 29.62% -------- -------- -------- -------- Operating income 36,586 5.65% 29,778 4.86% Interest expense, net 794 0.12% 453 0.07% -------- -------- -------- -------- Earnings before income taxes 35,792 5.53% 29,325 4.79% Provision for income taxes 13,332 2.06% 11,070 1.81% -------- -------- -------- -------- Net earnings $ 22,460 3.47% $ 18,255 2.98% ======== ======== ======== ======== Net earnings per share: Basic $0.57 $0.44 ======== ======== Diluted $0.56 $0.44 ======== ======== Weighted average shares outstanding: Basic 39,530 41,082 ======== ======== Diluted 39,769 41,554 ======== ========
(THE MEN'S WEARHOUSE, INC. LOGO) THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS FOR THE THREE MONTHS ENDED AUGUST 2, 2003 AND AUGUST 3, 2002 (In thousands, except per share data)
THREE MONTHS ENDED --------------------------------------------------- % OF % OF 2003 SALES 2002 SALES -------- ------- -------- ------- Net sales $334,292 100.00% $308,574 100.00% Cost of goods sold, including buying and occupancy costs 211,356 63.22% 201,523 65.31% -------- ------ -------- ------ Gross margin 122,936 36.78% 107,051 34.69% Selling, general and administrative expenses 104,277 31.19% 94,336 30.57% -------- ------ -------- ------ Operating income 18,659 5.58% 12,715 4.12% Interest expense, net 415 0.12% 190 0.06% -------- ------ -------- ------ Earnings before income taxes 18,244 5.46% 12,525 4.06% Provision for income taxes 6,796 2.03% 4,728 1.53% -------- ------ -------- ------ Net earnings $ 11,448 3.42% $ 7,797 2.53% ======== ====== ======== ====== Net earnings per share: Basic $ 0.29 $ 0.19 ======== ======== Diluted $ 0.29 $ 0.19 ======== ======== Weighted average shares outstanding: Basic 39,427 41,106 ======== ======== Diluted 39,830 41,596 ======== ========
(THE MEN'S WEARHOUSE, INC. LOGO) THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
AUGUST 2, AUGUST 3, 2003 2002 --------- --------- ASSETS Current assets: Cash $ 70,145 $ 44,062 Inventory 393,631 370,644 Other current assets 47,153 44,944 -------- -------- Total current assets 510,929 459,650 Property and equipment, net 208,387 209,217 Other assets 70,426 55,114 -------- -------- Total assets $789,742 $723,981 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $169,874 $138,900 Long term debt 40,988 36,665 Deferred taxes and other liabilities 26,781 22,106 Shareholders' equity 552,099 526,310 -------- -------- Total liabilities and equity $789,742 $723,981 ======== ========