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Men's Wearhouse Conference Call Highlights

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Shares of Men's Wearhouse (NYSE: MW) traded up six percent following its second quarter earnings release on Friday.

Below are some highlights and key takeaways from its conference call:

• Our first quarter GAAP earnings were $0.34 per share.
• Included in those results were one-time charges amounting to $26.5 million or $0.35 per share.
• The charges were primarily related to the acquisition of Joseph A. Bank.
• We were pleased with the sales results in each of our retail brands in spite of an ongoing difficult retail climate and severe weather closures during the month of February.
• Our comp sales for the Men's Wearhouse brand were up 2.9 percent.
• The effect of all this is an improvement in adjusted EBIT of 2.3 percent.
• We had higher interest expense in the period by about $800,000 and our tax rate was approximately the same as last year.
• We ended the quarter with $96 million in cash. Inventories were $646 million which is higher than last year by $47 million or 7.8 percent.
• Men's Wearhouse represented 67 percent of our overall sales and finished the quarter with a 2.9 percent comp sales increase.
• Initiatives to attract younger customers continue to produce results as slim fit now represents 45 percent of our sales.

Strategic issues:
• Regarding the acquisition of Joseph A. Bank, we're now on track to finalize the financing and close the merger.
• We'll launch a bond offering next week.
• We hope to price the bond offering next week and close the merger in the middle to latter part of the following week.

• We're not providing any guidance at this time.
• We do not have enough information about the Joseph A. Bank business to provide any valuable future guidance.
• To be clear, due to the review by the FTC, we have not been permitted to have any discussions with management of Joseph A. Bank regarding key retail strategies or results.

Posted-In: Earnings News


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