FREMONT, Calif., Dec. 10, 2014 /PRNewswire/ -- The Men's Wearhouse (NYSE: MW) today announced consolidated financial results for the fiscal third quarter and nine months ended November 1, 2014.

GAAP diluted EPS for fiscal third quarter 2014 was $0.14 and adjusted diluted EPS was $0.83 excluding non-operating items((1)). Results for Jos. A. Bank are included in our financial statements beginning June 18, 2014, the date of the closing of the acquisition.

Doug Ewert, Men's Wearhouse chief executive officer, commented, "We continue to be pleased with the progress we are making on the Jos. A. Bank integration. In addition, we are pleased with the overwhelmingly positive reaction of the Jos. A. Bank employees to our culture and are very optimistic about our opportunities to expand consolidated sales and margins as we complete the integration. We remain confident in our 2017 guidance and our cost synergy run-rate at the end of the third quarter is well ahead of our original $15 million projection for the end of the 2014 fiscal year and our systems conversions are on target.

"During the quarter, Jos. A. Bank's comparable sales were slightly below our internal expectations but, as part of our operating strategy for the brand, we are very encouraged by the positive increase of 123 basis points in the maintained product margin rate," added Ewert. "We also completed our review of Jos. A. Bank's inventory and concluded we will dispose of approximately $50 million of product which will be recorded as a reduction in the inventory value at the date of acquisition; a purchase price accounting adjustment. This product will be pulled from the stores as part of our regular physical inventory process in January. Additionally, we wrote off approximately $10 million of slower renting tuxedo inventory to make room for more productive inventory in anticipation of the tuxedo rollout. As a reminder, we will begin renting tuxedos from our existing rental inventory in Jos. A. Bank beginning in January 2015. The in-store training has begun and we are excited about this revenue synergy opportunity.

"Excluding Jos. A. Bank results, the third quarter adjusted operating income increased low double digits driven by strong performances at Men's Wearhouse, Moores and K&G, posting comparable sales increases of 2.2%, 8.8% and 4.4%, respectively. We are also excited about our recent announcements of in-home wedding consultations beginning early next year, the premiere of the Joseph Abboud website and the future Joseph Abboud flagship store in New York City.

"We have completed our strategic review of K&G. As part of the review, we considered offers to acquire the business, none of which were acceptable. We concluded that continuing to operate K&G as a part of the Company's overall portfolio will provide the most value to our shareholders. We would like to thank K&G's management and employees for continuing to work diligently, which has led to the strong results that have been posted this year," concluded Ewert.

FISCAL THIRD QUARTER SALES REVIEW

The tables that follow are a summary of net sales for fiscal 2014 third quarter and fiscal nine months ended November 1, 2014. The dollars shown are U.S. dollars in millions and due to rounded numbers may not sum. The Moores comparable sales change is based on the Canadian dollar. The comparable sales shown below for Jos. A. Bank are a comparison to the full periods, not a comparison of the acquisition period since June 18, 2014. Comparable sales exclude the net sales of a store for any month of one period if the store was not open throughout the same month of the prior period and include e-commerce net sales.



                                   Third Quarter Net Sales Summary - Fiscal 2014
                                   ---------------------------------------------

                                                      Net Sales           Comparable Sales
                                                                                Change
                                                      ---------          -----------------

                              Net Sales Change     Current Quarter        Current Quarter         Prior Year Quarter

    Total Retail Segment        42.3%      $243.6             $819.2
    --------------------         ----       ------             ------

           Men's Wearhouse       2.0%        $8.5             $436.1                        2.2%                     2.6%
           ---------------        ---         ----             ------                         ---                       ---

           Jos. A. Bank           n/a      $233.3             $233.3                      (8.1%)                     2.4%
           ------------    ----------      ------             ------                       -----                       ---

           Moores                1.9%        $1.3              $68.7                        8.8%                   (2.4%)
           ------                 ---         ----              -----                         ---                     -----

           K&G                   0.1%        $0.0              $72.8                        4.4%                   (4.4%)
           ---                    ---         ----              -----                         ---                     -----

           MW Cleaners           7.0%        $0.5               $8.2
           -----------            ---         ----               ----


    Corporate Apparel
     Segment                   (2.6%)      ($1.9)             $71.5
    -----------------           -----        -----              -----


    Total Company               37.3%      $241.7             $890.6
    -------------                ----       ------             ------


                                    Year-To-Date Net Sales Summary - Fiscal 2014
                                    --------------------------------------------

                                                     Net Sales           Comparable Sales
                                                                                Change
                                                     ---------          -----------------

                             Net Sales Change       Current Year          Current Year               Prior Year

    Total Retail Segment        23.1%      $400.1           $2,129.2
    --------------------         ----       ------           --------

           Men's Wearhouse       4.1%       $51.4           $1,307.4                        3.1%                     1.6%
           ---------------        ---        -----           --------                         ---                       ---

           Jos. A. Bank           n/a      $347.0             $347.0                      (0.2%)                   (6.4%)
           ------------           ---      ------             ------                       -----                     -----

           Moores                1.8%        $3.5             $199.3                        8.6%                   (4.6%)
           ------                 ---         ----             ------                         ---                     -----

           K&G                 (1.4%)      ($3.5)            $251.5                        2.7%                   (4.8%)
           ---                  -----        -----             ------                         ---                     -----

           MW Cleaners           7.7%        $1.7              $24.0
           -----------            ---         ----              -----


    Corporate Apparel
     Segment                     6.2%       $11.4             $195.0
    -----------------             ---        -----             ------


    Total Company               21.5%      $411.5           $2,324.2
    -------------                ----       ------           --------

Net sales at our largest brand, Men's Wearhouse, which represented 49% of total third quarter sales, were up 2.0% from last year's third quarter and comparable sales increased 2.2%. On a comparable basis, an increase in clothing product average unit retails (or the net selling price per unit) more than offset decreases in units sold per transaction and average transactions per store. The higher margin tuxedo rental revenues comparable sales increased 5.3% in the third quarter of 2014.

Jos. A. Bank was 26% of the Company's total third quarter sales. Comparable sales for the third quarter decreased 8.1% with flat units sold per transaction and flat clothing product average unit retails offset by a decrease in average transactions per store. Moores, our Canadian retail brand, was 8% of the total third quarter sales and had a comparable sales increase of 8.8% due to an increase in clothing product average unit retails that more than offset a decrease in units sold per transaction while average transactions per store were flat. However, net sales for Moores only increased 1.9% due to an unfavorable change in the currency translation rate. K&G was 8% of the Company's total third quarter sales with a comparable sales increase of 4.4% due to increases in average transactions per store and units sold per transaction which more than offset a decrease in average unit retails. The Corporate Apparel segment, which represented 8% of total third quarter sales, had a sales decrease of 2.6%.

FISCAL THIRD QUARTER CONSOLIDATED RESULTS REVIEW

Sales
Total net sales increased 37.3% or $241.7 million to $890.6 million from $648.9 million.

Retail segment sales for the quarter increased by 42.3% or $243.6 million due to $233.3 million in sales at Jos. A. Bank and an increase in comparable sales at all other retail brands.

Corporate apparel sales decreased by 2.6% or $1.9 million.

Gross Margin
Total GAAP gross margin was $369.2 million. Adjusted consolidated gross margin of $390.0 million increased $96.5 million or 32.9% compared to the prior year quarter. The total adjusted gross margin rate decreased 145 basis points primarily due to lower margins at Jos. A. Bank.

Adjusted retail segment gross margin increased $94.7 million or 34.7%. The adjusted retail segment gross margin rate decreased 254 basis points including Jos. A. Bank and increased 63 basis points excluding Jos. A. Bank.

Corporate apparel gross margin increased $1.8 million or 8.7% and increased 324 basis points.

Advertising
Advertising expenses increased $19.4 million to $42.1 million, an increase of 85.9% or 124 basis points compared to the prior quarter primarily due to Jos. A. Bank advertising expenses.

SG&A
GAAP SG&A expenses increased $71.1 million to $282.0 million, an increase of 33.7% but a decrease of 84 basis points. Adjusted SG&A expenses were 190 basis points favorable to the prior year. On an absolute dollar basis, adjusted SG&A increased by $58.8 million or 28.9% primarily due to the addition of Jos. A. Bank SG&A.

Operating Income
GAAP operating income was $45.2 million compared to GAAP operating income of $60.0 million last year. Adjusted operating income was $85.7 million, an increase of $18.2 million or 26.9% over the prior year adjusted operating income of $67.5 million.

Interest and Taxes
Net interest expense for the third quarter was $25.0 million.

The effective tax rate for the third quarter was 65.3%. Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 33.6%.

Net Earnings
GAAP net earnings were $6.8 million compared to GAAP net earnings of $38.2 million last year. GAAP diluted earnings per share was $0.14 compared to $0.79 in the prior year quarter. Adjusted net earnings were $40.1 million, or $0.83 adjusted diluted earnings per share compared to adjusted net earnings of $43.1 million, or $0.90 adjusted diluted earnings per share last year.

Balance Sheet
In connection with the acquisition of Jos. A. Bank, debt at the end of the third quarter was approximately $1.7 billion. Inventories increased $442.2 million to $1,082.4 million from $640.2 million due primarily to Jos. A. Bank and inventory related to Joseph Abboud. This increase is net of the $50 million decrease in inventory associated with the review of Jos. A. Bank's inventory at the date of acquisition. Additionally, approximately $10 million of the increase was related to an inventory build for our corporate apparel business to service existing customers and the remaining increase was primarily driven by new store openings at Men's Wearhouse.

JOS. A. BANK STANDALONE FISCAL THIRD QUARTER HIGHLIGHTS((2))

Clothing sales decreased 5.2% to $214.2 million from prior year third quarter. Maintained product margin increased 123 basis points and total clothing margin excluding occupancy increased 54 basis points to 55.6%.

Occupancy costs increased from $35.7 million in the prior year, or 14.4% of total sales, to $40.5 million, or 17.3% of total sales in the current period primarily due to deleveraging caused by the decrease in Jos. A. Bank comparable sales and the impact of new stores.

FISCAL NINE MONTH CONSOLIDATED RESULTS REVIEW

Sales
Total net sales increased 21.5% or $411.5 million to $2,324.2 million, up from $1,912.7 million.

Year-to-date retail segment sales increased by 23.1%, or $400.1 million, due to $347.0 million in sales at Jos. A. Bank since the closing of the acquisition and an increase in comparable sales at all other retail brands.

Corporate apparel sales increased by 6.2%, or $11.4 million.

Gross Margin
Total GAAP gross margin was $1,011.1 million. Adjusted consolidated gross margin of $1,038.7 million was an increase of $158.4 million, or 18.0%, compared to the prior year quarter. The total adjusted gross margin rate decreased 133 basis points primarily due to lower margins at Jos. A. Bank.

Adjusted retail segment gross margin increased $154.2 million, or 18.7%. The adjusted retail segment gross margin rate decreased 172 basis points including Jos. A. Bank and increased 23 basis points excluding Jos. A. Bank.

Corporate apparel gross margin increased $4.3 million, or 7.7%, and increased 42 basis points.

Advertising
Advertising expenses increased $40.5 million to $109.1 million, an increase of 59.0% or 111 basis points primarily due to the Jos. A. Bank advertising expenses and the brand advertising associated with the rollout of Joseph Abboud.

SG&A
GAAP SG&A expenses increased $164.1 million to $786.9 million, an increase of 26.4% or 130 basis points. Adjusted SG&A expenses were 203 basis points favorable to the prior year. On an absolute dollar basis adjusted SG&A increased by $84.5 million, or 13.8%, primarily due to the addition of Jos. A. Bank SG&A.

Operating Income
GAAP operating income was $115.2 million compared to GAAP operating income of $179.3 million last year. Adjusted operating income was $232.7 million, an increase of $33.5 million, or 16.8%, over the prior year adjusted operating income of $199.2 million.

Interest and Taxes
Net interest expense for the nine months was $39.2 million.

The effective tax rate for the nine months was 51.5%. Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 34.7%.

Net Earnings
GAAP net earnings were $35.5 million compared to GAAP net earnings of $114.2 million last year. GAAP diluted earnings per share was $0.74 compared to $2.29 last year. Adjusted net earnings were $126.1 million, or $2.61 adjusted diluted earnings per share, compared to adjusted net earnings of $127.2 million, or $2.55 adjusted diluted earnings per share last year.

CONFERENCE CALL AND WEBCAST INFORMATION

At 9:00 a.m. Eastern time on Thursday, December 11, 2014, Company management will host a conference call and real time webcast to review fiscal 2014 third quarter and nine month results.

To access the conference call, dial 913-312-1485. To access the live webcast presentation, visit the Investor Relations section of the Company's website at http://ir.menswearhouse.com. A telephonic replay will be available through December 18, 2014 by calling 719-457-0820 and entering the access code of 5527190#, or a webcast archive will be available free on the website for approximately 90 days.

STORE INFORMATION



                   November 1, 2014   November 2, 2013   February 1, 2014
                   ----------------   ----------------   ----------------

                   Number of Stores       Sq. Ft.        Number of Stores    Sq. Ft.   Number of Stores   Sq. Ft.

                                          (000's)                            (000's)                      (000's)
                                           ------                            ------                       ------


    Men's
     Wearhouse                    686            3,903.9                 658    3,752.2                 661    3,774.3
    ----------                    ---            -------                 ---    -------                 ---    -------


    Jos. A. Bank
     (a)                          637            2,891.0                   -         -                  -         -
    ------------                  ---            -------                 ---       ---                ---       ---


    Men's
     Wearhouse and
     Tux                          223              309.6                 261      360.5                 248      344.0
    --------------                ---              -----                 ---      -----                 ---      -----


    Moores,
     Clothing for
     Men                          122              774.4                 120      764.4                 121      769.3
    -------------                 ---              -----                 ---      -----                 ---      -----


    K&G (b)                        92            2,184.4                  94    2,228.7                  94    2,228.8
    ------                        ---            -------                 ---    -------                 ---    -------


    Total                       1,760           10,063.3               1,133    7,105.8               1,124    7,116.4


    (a) Excludes 15 franchise stores.

    (b) 85, 88 and 85 stores, respectively, offering women's apparel.

Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 1,760 stores. The Men's Wearhouse, Jos. A. Bank, Moores and K&G stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and non-exclusive merchandise brands and Men's Wearhouse and Tux stores carry a limited selection. Most K&G stores carry a full selection of women's apparel. Tuxedo rentals are available in the Men's Wearhouse, Jos. A. Bank, Moores and Men's Wearhouse and Tux stores. Additionally, Men's Wearhouse operates a global corporate apparel and workwear group consisting of Twin Hill in the United States and Dimensions, Alexandra and Yaffy in the United Kingdom.

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. Forward-looking statements are not guarantees of future performance and a variety of factors could cause actual results to differ materially from the anticipated or expected results expressed in or suggested by these forward-looking statements. These forward-looking statements may be significantly impacted by various factors, including, but not limited to: actions by governmental entities, domestic and international economic activity and inflation, success, or lack thereof, in executing our internal operating plans and new store and new market expansion plans, including successful integration of acquisitions, including Jos. A. Bank, performance issues with key suppliers, disruption in buying trends due to homeland security concerns, severe weather, foreign currency fluctuations, government export and import policies, aggressive advertising or marketing activities of competitors, and legal proceedings. Future results will also be dependent upon our ability to continue to identify and complete successful expansions and penetrations into existing and new markets and our ability to integrate such expansions with our existing operations.

These forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. The following factors, among others, could cause actual results to differ materially from those expressed or implied in the forward-looking statements: (1) the possibility that the expected benefits from the Jos. A. Bank transaction will not be realized within the anticipated time period, (2) the risks related to the costs and difficulties related to the integration of Jos. A. Bank's business and operations with our business and operations, (3) the inability to obtain, or delays in obtaining, cost savings and synergies from the transaction, (4) unexpected costs, charges or expenses resulting from the transaction, (5) litigation relating to the transaction, (6) the inability to retain key personnel and (7) the possible disruption that may be caused by the Jos. A. Bank transaction to our business and operations, including relationships with customers, employees and other third parties.

The forward-looking statements in this press release speak only as of the date hereof. Except for the ongoing obligations of Men's Wearhouse to disclose material information under the federal securities laws, Men's Wearhouse undertakes no obligation to revise or update publicly any forward-looking statement, except as required by law. Other factors that may impact the forward-looking statements are described in Men's Wearhouse's annual report on Form 10-K for the fiscal year ended February 1, 2014 and quarterly reports on Form 10-Q. For additional information on Men's Wearhouse, please visit the Company's websites at www.menswearhouse.com, www.josbank.com, www.josephabboud.com, www.mooresclothing.com, www.kgstores.com, www.twinhill.com, www.dimensions.co.uk and www.alexandra.co.uk.

Contact:
Investor Relations
(281) 776-7575
ir@tmw.com

Kelly Dilts
Men's Wearhouse, SVP, Finance & IR

Ken Dennard
Dennard ? Lascar Associates

(1) Adjusted information is non-GAAP financial information provided to enhance the user's overall understanding of the Company's current financial performance. Reconciliations of adjusted financial information to GAAP results are included in the tables at the end of this release.

(2) Based on adjusted information provided to enhance the user's overall understanding of Jos. A. Bank's current financial performance and includes reclassifications to conform Jos. A. Bank's historical results with the Company's current external reporting presentation.



    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

    (Unaudited)


    For the Three Months Ended November 1, 2014 and November 2, 2013

    (In thousands, except per share data)


                                                                                             Three Months Ended                          Variance
                                                                                             ------------------                          --------

                                                                                                            % of                           % of                                                      Basis

                                                                                            2014              Sales                2013       Sales            Dollar               %                   Points
                                                                                            ----              -----                ----       -----            ------              ---                  ------


    Net sales:

              Retail clothing product                                                   $634,447                       71.24%  $415,985                64.11%           $218,462            52.52%                7.13

              Tuxedo rental services                                                     132,690                       14.90%   122,177                18.83%             10,513             8.60%              (3.93)

              Alteration and other services                                               52,025                        5.84%    37,363                 5.76%             14,662            39.24%                0.08
                                                                                          ------                         ----     ------                  ----              ------             -----                 ----

                   Total retail sales                                                    819,162                       91.97%   575,525                88.69%            243,637            42.33%                3.28

              Corporate apparel clothing product                                          71,475                        8.03%    73,365                11.31%            (1,890)          (2.58%)              (3.28)
                                                                                          ------                         ----     ------                 -----              ------            ------                -----

                        Total net sales                                                  890,637                      100.00%   648,890               100.00%            241,747            37.26%                0.00


                       Total cost of sales                                               521,432                       58.55%   355,388                54.77%            166,044            46.72%                3.78


    Gross margin (a):

            Retail clothing product                                                      347,138                       54.72%   234,543                56.38%            112,595            48.01%              (1.67)

            Tuxedo rental services                                                        99,152                       74.72%   102,864                84.19%            (3,712)          (3.61%)              (9.47)

            Alteration and other services                                                 14,852                       28.55%     8,951                23.96%              5,901            65.93%                4.59

            Occupancy costs                                                            (114,325)                    (13.96%)  (73,456)             (12.76%)           (40,869)         (55.64%)              (1.19)
                                                                                        --------                      -------    -------               -------             -------           -------                -----

                   Total retail gross margin                                             346,817                       42.34%   272,902                47.42%             73,915            27.08%              (5.08)

            Corporate apparel clothing product                                            22,388                       31.32%    20,600                28.08%              1,788             8.68%                3.24
                                                                                          ------                        -----     ------                 -----               -----              ----                 ----

                       Total gross margin                                                369,205                       41.45%   293,502                45.23%             75,703            25.79%              (3.78)


    Advertising expenses                                                                  42,075                        4.72%    22,630                 3.49%             19,445            85.93%                1.24

    Selling, general and administrative expenses                                         281,955                       31.66%   210,867                32.50%             71,088            33.71%              (0.84)


    Operating income                                                                      45,175                        5.07%    60,005                 9.25%           (14,830)         (24.71%)              (4.18)


    Net interest                                                                        (25,006)                     (2.81%)   (1,190)              (0.18%)           (23,816)         2001.34%              (2.62)
                                                                                         -------                       ------     ------                ------             -------           -------                -----


    Earnings before income taxes                                                          20,169                        2.26%    58,815                 9.06%           (38,646)         (65.71%)              (6.80)


    Provision for income taxes                                                            13,168                        1.48%    20,337                 3.13%            (7,169)         (35.25%)              (1.66)
                                                                                                                     -----                           -----                               ------               ------


    Net earnings including non-controlling interest                                        7,001                        0.79%    38,478                 5.93%           (31,477)         (81.81%)              (5.14)


    Net earnings attributable to non-controlling interest                                  (208)                     (0.02%)     (274)              (0.04%)                 66            24.09%                0.02
                                                                                            ----                       ------       ----                ------                 ---             -----                 ----


    Net earnings attributable to common shareholders                                      $6,793                        0.76%   $38,204                 5.89%          $(31,411)         (82.22%)              (5.12)
                                                                                          ======                         ====    =======                  ====            ========           =======                =====


    Net earnings per diluted common share attributable to common shareholders              $0.14                                  $0.79
                                                                                           =====                                  =====


    Weighted-average diluted common shares outstanding:                                   48,254                                 47,873
                                                                                          ======                                 ======


    (a)  Gross margin percent of sales is calculated as a percentage of related sales.



    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

    (Unaudited)


    For the Nine Months Ended November 1, 2014 and November 2, 2013

    (In thousands, except per share data)


                                                                                               Nine Months Ended                           Variance
                                                                                               -----------------                           --------

                                                                                                             % of                            % of                                                      Basis

                                                                                             2014              Sales                 2013       Sales            Dollar               %                   Points
                                                                                             ----              -----                 ----       -----            ------              ---                  ------


    Net sales:

              Retail clothing product                                                  $1,598,199                       68.76% $1,248,405                65.27%           $349,794            28.02%                3.49

              Tuxedo rental services                                                      395,449                       17.01%    368,360                19.26%             27,089             7.35%              (2.24)

              Alteration and other services                                               135,585                        5.83%    112,381                 5.88%             23,204            20.65%              (0.04)
                                                                                          -------                         ----     -------                  ----              ------             -----                -----

                   Total retail sales                                                   2,129,233                       91.61%  1,729,146                90.40%            400,087            23.14%                1.21

              Corporate apparel clothing product                                          194,956                        8.39%    183,535                 9.60%             11,421             6.22%              (1.21)
                                                                                          -------                         ----     -------                  ----              ------              ----                -----

                        Total net sales                                                 2,324,189                      100.00%  1,912,681               100.00%            411,508            21.51%                0.00


                        Total cost of sales                                             1,313,078                       56.50%  1,032,465                53.98%            280,613            27.18%                2.52


    Gross margin (a):

            Retail clothing product                                                       876,059                       54.82%    703,902                56.38%            172,157            24.46%              (1.57)

            Tuxedo rental services                                                        320,366                       81.01%    311,971                84.69%              8,395             2.69%              (3.68)

            Alteration and other services                                                  37,791                       27.87%     26,625                23.69%             11,166            41.94%                4.18

            Occupancy costs                                                             (282,595)                    (13.27%)  (217,521)             (12.58%)           (65,074)         (29.92%)              (0.69)
                                                                                         --------                      -------    --------               -------             -------           -------                -----

                   Total retail gross margin                                              951,621                       44.69%    824,977                47.71%            126,644            15.35%              (3.02)

            Corporate apparel clothing product                                             59,490                       30.51%     55,239                30.10%              4,251             7.70%                0.42
                                                                                           ------                        -----      ------                 -----               -----              ----                 ----

                       Total gross margin                                               1,011,111                       43.50%    880,216                46.02%            130,895            14.87%              (2.52)


    Advertising expenses                                                                  109,072                        4.69%     68,584                 3.59%             40,488            59.03%                1.11

    Selling, general and administrative expenses                                          786,879                       33.86%    622,785                32.56%            164,094            26.35%                1.30

    Goodwill impairment charge                                                                  -                       0.00%      9,501                 0.50%            (9,501)               NM              (0.50)


    Operating income                                                                      115,160                        4.95%    179,346                 9.38%           (64,186)         (35.79%)              (4.42)


    Net interest                                                                         (39,154)                     (1.68%)    (1,772)              (0.09%)           (37,382)         2109.59%              (1.59)

    Loss on extinguishment of debt                                                        (2,158)                     (0.09%)          -                0.00%            (2,158)               NM              (0.09)
                                                                                           ------                       ------         ---                 ----              ------               ---               -----


    Earnings before income taxes                                                           73,848                        3.18%    177,574                 9.28%          (103,726)         (58.41%)              (6.11)


    Provision for income taxes                                                             38,021                        1.64%     63,162                 3.30%           (25,141)         (39.80%)              (1.67)
                                                                                           ------                         ----      ------                  ----             -------           -------                -----


    Net earnings including non-controlling interest                                        35,827                        1.54%    114,412                 5.98%           (78,585)         (68.69%)              (4.44)


    Net earnings attributable to non-controlling interest                                   (292)                     (0.01%)      (174)              (0.01%)              (118)         (67.82%)                0.00
                                                                                             ----                       ------        ----                ------                ----           -------                 ----


    Net earnings attributable to common shareholders                                      $35,535                        1.53%   $114,238                 5.97%          $(78,703)         (68.89%)              (4.44)
                                                                                          =======                         ====    ========                  ====            ========           =======                =====



    Net earnings per diluted common share attributable to common shareholders               $0.74                                   $2.29
                                                                                            =====                                   =====


    Weighted-average diluted common shares outstanding:                                    48,124                                  49,598
                                                                                           ======                                  ======


    (a)  Gross margin percent of sales is calculated as a percentage of related sales.



    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (In thousands)

    (Unaudited)


                                                                                                      November 1,              November 2,

                                                                                                                        2014                   2013
                                                                                                                        ----                   ----


                                                                                ASSETS
                                                                                ------


    Current assets:

               Cash and cash equivalents                                                                               $64,716                $64,764

               Accounts receivable, net                                                                                 84,054                 80,180

               Inventories                                                                                           1,082,354                640,197

               Other current assets                                                                                    112,872                 77,918
                                                                                                                     -------


                  Total current assets                                                                               1,343,996                863,059

    Property and equipment, net                                                                                      569,779                407,261

    Tuxedo rental product, net                                                                                       129,579                142,272

    Goodwill                                                                                                         892,766                128,597

    Intangible assets, net                                                                                           673,057                 60,325

    Other assets                                                                                                      44,250                  4,937
                                                                                                                      ------                  -----


                  Total assets                                                                                      $3,653,427             $1,606,451
                                                                                                                  ==========


                                                                 LIABILITIES AND SHAREHOLDERS' EQUITY
                                                                 ------------------------------------


    Current liabilities:

               Accounts payable                                                                                       $263,645               $165,596

               Accrued expenses and other current liabilities                                                          283,271                168,120

               Income taxes payable                                                                                     13,590                 10,034

               Current maturities of long-term debt                                                                     11,000                 10,000
                                                                                                                      ------


                  Total current liabilities                                                                            571,506                353,750


    Long-term debt                                                                                                 1,678,589                 90,000

    Deferred taxes and other liabilities                                                                             367,612                104,950
                                                                                                                     -------                -------


                  Total liabilities                                                                                  2,617,707                548,700
                                                                                                                   ---------


    Shareholders' equity:

               Preferred stock                                                                                               -                     -

               Common stock                                                                                                481                    704

               Capital in excess of par                                                                                435,755                404,506

               Retained earnings                                                                                       581,956              1,177,945

               Accumulated other comprehensive income                                                                   20,829                 31,060

               Treasury stock, at cost                                                                                 (3,301)             (569,792)
                                                                                                                     -------


                  Total equity attributable to common shareholders                                                   1,035,720              1,044,423


               Non-controlling interest                                                                                      -                13,328
                                                                                                                         ---


                  Total shareholders' equity                                                                         1,035,720              1,057,751
                                                                                                                   ---------


                  Total liabilities and shareholders' equity                                                        $3,653,427             $1,606,451
                                                                                                                  ==========



    THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (Unaudited)

    For the Nine Months Ended November 1, 2014 and November 2, 2013

    (In thousands)


                                                                           Nine Months Ended
                                                                           -----------------

                                                                                                   2014       2013
                                                                                                   ----       ----


    CASH FLOWS FROM OPERATING ACTIVITIES:


               Net earnings including non-controlling interest                                    $35,827   $114,412

               Non-cash adjustments to net earnings:

                  Depreciation and amortization                                                    80,622     65,672

                  Tuxedo rental product amortization                                               30,038     28,712

               Amortization of deferred financing costs                                             3,014        383

               Amortization of discount on long-term debt                                             589          -

               Loss on extinguishment of debt                                                       2,158          -

               Loss (gain) on disposition of assets                                                12,247      (992)

               Goodwill impairment charge                                                               -     9,501

                  Other                                                                          (14,029)    13,984

               Changes in operating assets and liabilities                                       (91,449)  (72,289)
                                                                                               --------


                       Net cash provided by operating activities                                   59,017    159,383
                                                                                                 ------


    CASH FLOWS FROM INVESTING ACTIVITIES:

               Capital expenditures                                                              (72,397)  (81,521)

               Acquisition of businesses, net of cash                                         (1,491,393)  (95,693)

               Proceeds from sales of property and equipment                                          160      4,127


                       Net cash used in investing activities                                  (1,563,630) (173,087)
                                                                                            -----------


    CASH FLOWS FROM FINANCING ACTIVITIES:

               Proceeds from new term loan                                                      1,089,000          -

               Proceeds from asset-based revolving credit facility                                340,000          -

               Payments on asset-based revolving credit facility                                (340,000)         -

               Proceeds from bond issuance                                                        600,000          -

               Deferred financing costs                                                          (51,072)   (1,776)

               Proceeds from previous term loan                                                         -   100,000

               Payments on previous term loan                                                    (97,500)         -

               Cash dividends paid                                                               (26,119)  (26,979)

               Purchase of non-controlling interest                                               (6,651)         -

               Proceeds from issuance of common stock                                               7,115      8,291

               Tax payments related to vested deferred stock units                                (6,907)   (3,865)

               Excess tax benefits from share-based plans                                           3,736      1,532

               Repurchases of common stock                                                          (251) (152,129)
                                                                                                  -----


                       Net cash provided by (used in) financing activities                      1,511,351   (74,926)
                                                                                              ---------


               Effect of exchange rate changes                                                    (1,274)   (2,669)
                                                                                                -------


    INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                              5,464   (91,299)


               Balance at beginning of period                                                      59,252    156,063

               Balance at end of period                                                           $64,716    $64,764
                                                                                                =======



    THE MEN'S WEARHOUSE, INC. AND
     SUBSIDIARIES

    UNAUDITED CONDENSED CONSOLIDATED
     STATEMENTS OF EARNINGS - NON-GAAP

    (In thousands, except per share amounts)


    Use of Non-GAAP Financial Measures

    We have provided adjusted information in
     addition to providing financial results
     in accordance with GAAP.  This non-GAAP
     financial information is provided to
     enhance the user's overall understanding
     of the Company's current financial
     performance.  Specifically, we believe
     the adjusted results provide useful
     information by excluding items we
     believe are not indicative of our core
     operating results as well as certain
     items related to the acquisition of Jos.
     A. Bank.  The non-GAAP financial
     information should be considered in
     addition to, not as a substitute for or
     as being superior to, operating income,
     cash flows, or other measures of
     financial performance prepared in
     accordance with GAAP.  A reconciliation
     of this non-GAAP information to our
     actual results is as follows and may not
     sum due to rounded numbers:



    Total Company - Three Months Ended November 1, 2014
    ---------------------------------------------------

                                                        GAAP                                      Acquisition                                      Purchase Price                                   Other (1)           Adjusted

                                                       Results                                   & Integration                                       Acctg Items                                                         Results


    Net sales                                                   $890,637                             $                   -                            $                       -                          $          -              $890,637


    Gross margin:

         Retail clothing
          product                                                347,138                                                 -                                               11,428                                      -               358,566

         Tuxedo rental
          services                                                99,152                                            10,552                                                     -                                     -               109,704

         Alteration and other
          services                                                14,852                                                 -                                                    -                                     -                14,852

         Occupancy costs                                       (114,325)                                                -                                              (1,211)                                     -             (115,536)

    Total retail gross
     margin                                                      346,817                                            10,552                                                10,217                                      -               367,586

    Corporate apparel
     clothing product                                             22,388                                                                                                                                            -                22,388
                                                                  ------                                                                                                                                          ---                ------

    Total gross margin                                           369,205                                            10,552                                                10,217                                      -               389,974


    Advertising expense                                           42,075                                                 -                                                    -                                     -                42,075

    Selling, general and
     administrative
     expenses                                                    281,955                                          (18,646)                                              (2,733)                                 1,638                262,214

    Goodwill impairment
     charge                                                            -                                                -                                                    -                                     -                     -
                                                                     ---                                              ---                                                  ---                                   ---                   ---


    Operating income                                              45,175                                            29,198                                                12,950                                (1,638)                85,685


    Net interest                                                (25,006)                                                -                                                    -                                     -              (25,006)

    Loss on
     extinguishment of
     debt                                                              -                                                -                                                    -                                     -                     -
                                                                     ---                                              ---                                                  ---                                   ---                   ---


    Earnings before
     income taxes                                                 20,169                                            29,198                                                12,950                                (1,638)                60,679


    Provision for income
     taxes                                                        13,168                                             3,422                                                 4,352                                  (550)                20,391
                                                                  ------                                             -----                                                 -----                                   ----                 ------


    Net earnings
     including non-
     controlling interest                                          7,001                                            25,776                                                 8,598                                (1,088)                40,288


    Net earnings
     attributable to non-
     controlling interest                                          (208)                                                -                                                    -                                     -                 (208)
                                                                    ----                                               ---                                                  ---                                   ---                  ----


    Net earnings
     attributable to
     common shareholders                                          $6,793                                           $25,776                                                $8,598                               $(1,088)               $40,080
                                                                  ======                                           =======                                                ======                                =======                =======


    Net earnings per
     diluted common share
     attributable to
     common shareholders                                           $0.14                                             $0.53                                                 $0.18                                $(0.02)                 $0.83
                                                                   =====                                             =====                                                 =====                                 ======                  =====


    (1) Other relates to adjustments to prior estimates of costs related to store closure and separation costs with executives offset by costs related to K&G strategic alternative review.



    Total Company - Three Months Ended November 2, 2013
    ---------------------------------------------------

                                                        GAAP                                      Acquisition                                      Purchase Price                                   Other (2)           Adjusted

                                                       Results                                   & Integration                                       Acctg Items                                                         Results


    Net sales                                                   $648,890                             $                   -                            $                       -                          $          -              $648,890


    Gross margin:

         Retail clothing
          product                                                234,543                                                 -                                                    -                                     -               234,543

         Tuxedo rental
          services                                               102,864                                                 -                                                    -                                     -               102,864

         Alteration and other
          services                                                 8,951                                                 -                                                    -                                     -                 8,951

         Occupancy costs                                        (73,456)                                                -                                                    -                                     -              (73,456)

    Total retail gross
     margin                                                      272,902                                                 -                                                    -                                     -               272,902

    Corporate apparel
     clothing product                                             20,600                                                 -                                                    -                                     -                20,600
                                                                  ------                                               ---                                                  ---                                   ---                ------

    Total gross margin                                           293,502                                                 -                                                    -                                     -               293,502


    Advertising expense                                           22,630                                                 -                                                    -                                     -                22,630

    Selling, general and
     administrative
     expenses                                                    210,867                                           (3,786)                                                    -                               (3,711)               203,370

    Goodwill impairment
     charge                                                            -                                                -                                                    -                                     -                     -
                                                                     ---                                              ---                                                  ---                                   ---                   ---


    Operating income                                              60,005                                             3,786                                                     -                                 3,711                 67,502


    Net interest                                                 (1,190)                                                -                                                    -                                     -               (1,190)

    Loss on
     extinguishment of
     debt                                                              -                                                -                                                    -                                     -                     -
                                                                     ---                                              ---                                                  ---                                   ---                   ---


    Earnings before
     income taxes                                                 58,815                                             3,786                                                     -                                 3,711                 66,312


    Provision for income
     taxes                                                        20,337                                             1,311                                                     -                                 1,283                 22,931
                                                                  ------                                             -----                                                   ---                                 -----                 ------


    Net earnings
     including non-
     controlling interest                                         38,478                                             2,475                                                     -                                 2,428                 43,381


    Net earnings
     attributable to non-
     controlling interest                                          (274)                                                -                                                    -                                     -                 (274)
                                                                    ----                                               ---                                                  ---                                   ---                  ----


    Net earnings
     attributable to
     common shareholders                                         $38,204                                            $2,475                             $                       -                                $2,428                $43,107
                                                                 =======                                            ======                             =========================                                ======                =======


    Net earnings per
     diluted common share
     attributable to
     common shareholders                                           $0.79                                             $0.05                             $                       -                                 $0.05                  $0.90
                                                                   =====                                             =====                             =========================                                 =====                  =====


    (2) Other includes costs related to various strategic projects, separation costs associated with former executives, and store closure costs offset by a gain on the sale of an office building.



    Use of Non-GAAP Financial Measures (cont'd)


    Total Company - Nine Months Ended November 1, 2014
    --------------------------------------------------

                                                          GAAP                                        Acquisition                                        Purchase Price                                    Other (1)              Adjusted

                                                         Results                                     & Integration                                         Acctg Items                                                             Results


    Net sales                                                     $2,324,189                             $                   -                              $                       -                           $           -              $2,324,189


    Gross margin:

         Retail clothing
          product                                                    876,059                                                 -                                                 17,251                                        -                 893,310

         Tuxedo rental
          services                                                   320,366                                            10,552                                                       -                                       -                 330,918

         Alteration and other
          services                                                    37,791                                                 -                                                      -                                       -                  37,791

         Occupancy costs                                           (282,595)                                                -                                                  (262)                                       -               (282,857)

    Total retail gross
     margin                                                          951,621                                            10,552                                                  16,988                                        -                 979,161

    Corporate apparel
     clothing product                                                 59,490                                                 -                                                      -                                       -                  59,490
                                                                      ------                                               ---                                                    ---                                     ---                  ------

    Total gross margin                                             1,011,111                                            10,552                                                  16,988                                        -               1,038,651


    Advertising expense                                              109,072                                                 -                                                      -                                       -                 109,072

    Selling, general and
     administrative
     expenses                                                        786,879                                          (81,243)                                                (3,639)                                 (5,141)                 696,856

    Goodwill impairment
     charge                                                                -                                                -                                                      -                                       -                       -
                                                                         ---                                              ---                                                    ---                                     ---                     ---


    Operating income                                                 115,160                                            91,795                                                  20,627                                    5,141                  232,723


    Net interest                                                    (39,154)                                                -                                                      -                                       -                (39,154)

    Loss on
     extinguishment of
     debt                                                            (2,158)                                            2,158                                                       -                                       -                       -
                                                                      ------                                             -----                                                     ---                                     ---                     ---


    Earnings before
     income taxes                                                     73,848                                            93,953                                                  20,627                                    5,141                  193,569


    Provision for income
     taxes                                                            38,021                                            20,206                                                   7,157                                    1,784                   67,168
                                                                      ------                                            ------                                                   -----                                    -----                   ------


    Net earnings
     including non-
     controlling interest                                             35,827                                            73,747                                                  13,469                                    3,357                  126,401


    Net earnings
     attributable to non-
     controlling interest                                              (292)                                                -                                                      -                                       -                   (292)
                                                                        ----                                               ---                                                    ---                                     ---                    ----


    Net earnings
     attributable to
     common shareholders                                             $35,535                                           $73,747                                                 $13,469                                   $3,357                 $126,109
                                                                     =======                                           =======                                                 =======                                   ======                 ========


    Net earnings per
     diluted common share
     attributable to
     common shareholders                                               $0.74                                             $1.53                                                   $0.28                                    $0.07                    $2.61
                                                                       =====                                             =====                                                   =====                                    =====                    =====


    (1) Other relates to K&G strategic alternative review and cost reduction initiatives partially offset by adjustments to prior estimates of costs related to store closure and separation costs with executives.



    Total Company - Nine Months Ended November 2, 2013
    --------------------------------------------------

                                                          GAAP                                        Acquisition                                        Purchase Price                                    Other (2)              Adjusted

                                                         Results                                     & Integration                                         Acctg Items                                                             Results


    Net sales                                                     $1,912,681                             $                   -                              $                       -                           $           -              $1,912,681


    Gross margin:

         Retail clothing
          product                                                    703,902                                                 -                                                      -                                       -                 703,902

         Tuxedo rental
          services                                                   311,971                                                 -                                                      -                                       -                 311,971

         Alteration and other
          services                                                    26,625                                                 -                                                      -                                       -                  26,625

         Occupancy costs                                           (217,521)                                                -                                                      -                                       -               (217,521)

    Total retail gross
     margin                                                          824,977                                                 -                                                      -                                       -                 824,977

    Corporate apparel
     clothing product                                                 55,239                                                 -                                                      -                                       -                  55,239
                                                                      ------                                               ---                                                    ---                                     ---                  ------

    Total gross margin                                               880,216                                                 -                                                      -                                       -                 880,216


    Advertising expense                                               68,584                                                 -                                                      -                                       -                  68,584

    Selling, general and
     administrative
     expenses                                                        622,785                                           (4,430)                                                      -                                 (5,957)                 612,398

    Goodwill impairment
     charge                                                            9,501                                                 -                                                      -                                 (9,501)                       -
                                                                       -----                                               ---                                                    ---                                  ------                      ---


    Operating income                                                 179,346                                             4,430                                                       -                                  15,458                  199,234


    Net interest                                                     (1,772)                                                -                                                      -                                       -                 (1,772)

    Loss on
     extinguishment of
     debt                                                                  -                                                -                                                      -                                       -                       -
                                                                         ---                                              ---                                                    ---                                     ---                     ---


    Earnings before
     income taxes                                                    177,574                                             4,430                                                       -                                  15,458                  197,462


    Provision for income
     taxes                                                            63,162                                             1,478                                                       -                                   5,490                   70,130
                                                                      ------                                             -----                                                     ---                                   -----                   ------


    Net earnings
     including non-
     controlling interest                                            114,412                                             2,952                                                       -                                   9,968                  127,332


    Net loss attributable
     to non-controlling
     interest                                                          (174)                                                -                                                      -                                       -                   (174)
                                                                        ----                                               ---                                                    ---                                     ---                    ----


    Net earnings
     attributable to
     common shareholders                                            $114,238                                            $2,952                               $                       -                                  $9,968                 $127,158
                                                                    ========                                            ======                               =========================                                  ======                 ========


    Net earnings per
     diluted common share
     attributable to
     common shareholders                                               $2.29                                             $0.06                               $                       -                                   $0.20                    $2.55
                                                                       =====                                             =====                               =========================                                   =====                    =====


    (2) Other includes the non-cash write-off of K&G goodwill, costs related to various strategic projects, separation costs associated with former executives, and store closure costs offset by a gain on the sale of an office
     building.

    Use of Non-GAAP Financial Measures (cont'd)


    Jos. A. Bank Selected Metrics - Three Months Ended November 2, 2013 and November 1, 2014
    ----------------------------------------------------------------------------------------

                                                       Q3 FY 2013                              Adjustments (2)                   Q3 FY 2013          Q3 FY 2014             Adjustments (4)                      Q3 FY 2014

                                                     as Reported (1)                                                          Selected Metrics          GAAP                                                  Selected Metrics


                                                                                                                               $% (3)                                                                          $% (3)

    Net sales:

         Retail clothing
          product                                                         $225,969                 $                  -       $225,969        91.3%               $214,162       $                   -         $214,162        91.8%

         Other sales                                                        21,499                                              21,499         8.7%                 19,151                                       19,151         8.2%
                                                                            ------                                              ------          ---                  ------                                       ------          ---

    Total retail
     net sales                                                             247,468                                    -        247,468       100.0%                233,313                           -          233,313       100.0%


    Gross margin:

         Retail clothing
          product                                                          123,548                                  861         124,409        55.1%                107,635                      11,428           119,063        55.6%

         Other margin                                                        9,599                                    -          9,599        44.7%                  7,510                           0             7,510        39.2%

         Occupancy costs                                                  (33,920)                             (1,746)       (35,666)      -14.4%               (39,243)                    (1,211)         (40,454)      -17.3%
                                                                                                                              -------                                                                         -------

    Total retail
     gross margin                                                           99,227                                (885)         98,342        39.7%                 75,902                      10,218            86,120        36.9%


    Maintained product margin (net sales of retail clothing product less landed cost of goods)                          $135,333        59.9%                                                           $130,894        61.1%



    (1) As filed in Jos. A. Bank's 10-Q reclassified to be consistent with
     Men's Wearhouse reporting.

    (2) Primarily reflects converting the FIFO method used by Jos. A. Bank
     to weighted average cost and the resetting of the straight-line rent
     and tenant improvement amounts.

    (3) Percent of related sales.

    (4) Adjusted for impact of purchase price accounting items.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mens-wearhouse-reports-fiscal-2014-third-quarter-and-nine-month-results-300008052.html

SOURCE Men's Wearhouse