Men's Wearhouse Provides Mid-Quarter Update
HOUSTON, Jan. 3 /PRNewswire-FirstCall/ -- Men's Wearhouse (NYSE: MW) today provided its mid-quarter update of earnings per share guidance for the quarter that will be ending February 3, 2007.
Neill Davis, executive vice president and CFO, stated, "After a preliminary review of the first two months' results in our fiscal fourth quarter, we are reaffirming our Q4 2006 GAAP and adjusted diluted EPS estimates to be in the range of $0.72 to $0.76 and $0.68 to $0.72, respectively."
Summary Reconciliation of GAAP diluted EPS to Adjusted diluted EPS HISTORICAL RESULTS (A) Fiscal 2005 Fiscal 2006 1Q 2Q 3Q 4Q YR 1Q 2Q 3Q GAAP Diluted EPS 0.41 0.43 0.44 0.60 1.88 0.53 0.65 0.58 Adjustments (B) Eddie Rodriguez Costs (C) 0.05 0.06 0.11 Stock Based Compensation Reported in Earnings (D) 0.01 0.01 0.01 0.03 0.02 0.02 0.02 53rd Week Impact (E) Foreign Earnings Repatriation (F) 0.07 0.07 Discrete Tax Items (G) (0.04) (0.02) (0.05) Net Adjustments 0.05 0.07 (0.02) 0.07 0.17 0.02 0.02 0.02 Adjusted Diluted EPS 0.46 0.50 0.41 0.67 2.04 0.55 0.67 0.60 GUIDANCE Fiscal 2006 4Q YR GAAP Diluted EPS 0.72 - 0.76 2.48 - 2.52 Adjustments (B) Eddie Rodriguez Costs (C) Stock Based Compensation Reported in Earnings (D) 0.02 0.08 53rd Week Impact (E) (0.06) (0.06) Foreign Earnings Repatriation (F) Discrete Tax Items (G) Net Adjustments (0.04) 0.02 Adjusted Diluted EPS 0.68 - 0.72 2.50 - 2.54 A. Due to the effect of rounding, the sum of the individual per share amounts may not equal the total shown. B. Net of tax. C. The company ceased operating its test of the new retail concept "Eddie Rodriguez" in the second quarter of fiscal 2005. D. In fiscal 2005 the company did not grant non-qualified stock options (NQO's) to key employees, opting instead to issue primarily deferred stock units (DSU's). In 2006 the company began recognizing stock option expense as it adopted FASB No. 123R. Amounts reported in earnings for 2005 include primarily DSU's and for 2006 include mostly DSU's and NQO's. E. Fiscal 2006 will include one additional week (for a total of 53 weeks) as the company reports its fiscal operations on a retail calendar. F. The company incurred a one-time tax expense of $3.9 million ($0.07 per share) related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act. G. Adjustments to tax reserves associated with favorable developments on certain outstanding income tax matters.
Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 752 stores. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories, including tuxedo rentals available in the Men's Wearhouse and Moores stores.
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, disruption in retail buying trends due to homeland security concerns, 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 January 28, 2006 and subsequent Forms 10-Q.
For additional information on Men's Wearhouse, please visit the company's website at http://www.menswearhouse.com .
CONTACT: Neill Davis, EVP & CFO, Men's Wearhouse (713) 592-7200
Ken Dennard, DRG&E (713) 529-6600
SOURCE The Men's Wearhouse, Inc.
Released January 3, 2007