Company Provides Outlook For Remainder Of Fiscal Year 2000

The Men's Wearhouse (Nasdaq:MENS) today announced results for the first quarter which ended April 29, 2000.

For the quarter, net earnings increased 25.2 percent to $13.4 million, or $.32 of diluted earnings per share, versus pro forma net earnings before extraordinary item of $10.7 million, or $.25 of diluted earnings per share, in the same period a year ago.

Sales for the quarter were $287.9 million compared with $258.9 million for the same period a year ago, an increase of 11.2 percent.

Comparable store sales in the U.S. for the quarter increased 5.3 percent compared with a 5.6 percent increase a year ago and in Canada decreased 5.6 percent compared with a 6.5 percent decrease a year ago.

During the first quarter, the company's comparable store sales at its core stores, Men's Wearhouse, were on plan and at its K&G Men's Center stores were above plan.

Management's Update And Outlook for Remainder Of Fiscal Year 2000

"We have had a very strong start to the current fiscal year. Sales and net earnings for the first quarter continue to reach record levels. In addition, we achieved gross margin improvements at all of our brands. Operating expenses were up during the quarter and are reflective of our ongoing reinvestment in employee training, advertising, payroll, and infrastructure. We continue to invest in casual merchandise inventory to take advantage of the ongoing trend towards a more casual workplace. We are experiencing strong comparable store sales growth in these product categories. In addition, we continue to grow our market share in our core category, suits, having achieved an estimated market share of 16% at fiscal year end 1999, up from 15% in the prior year," said David Edwab, president of The Men's Wearhouse, Inc.

Our principal activities and outlook include the following:


-- During the quarter, we opened four new Men's Wearhouse stores,
all in the existing markets of the states of Pennsylvania,
Georgia, Illinois, and California and closed two stores. We plan
to add approximately 30 more new stores to our core Men's
Wearhouse stores as well as selectively increasing the average
size of our existing store base up to an average level of 6,000
square feet. The additional square footage will accommodate
expansion of our product offerings, particularly business casual
wear, shoes, and big & tall categories.

-- We continue to roll out our tuxedo rental business, which is
being done through our core Men's Wearhouse stores. At quarter
end we were offering rentals in 97 locations, up from 43 stores
at the end of last fiscal year. Our plans call for a continued
rollout, with a target of approximately 150 to175 stores by the
end of the fiscal year.

-- We have opened two new K&G stores and closed one store in the
first quarter and expect to add 8 or more stores over the next
three quarters. The average store size will approximate 15,000
square feet.

-- We are working on a re-design of our Internet presence. Our
current site, menswearhouse.com is informational only. The
re-design will incorporate e-commerce capability and will
initially offer a similar, but limited, product offering as now
found in our brick and mortar locations. The site is expected to
be up and running by late summer.

-- Supporting these various initiatives is an expansion of our
central warehouse and distribution facilities in Houston, Texas.
In December 1999, we purchased a 46-acre tract of land that will
serve as our future logistics site for Internet fulfillment,
tuxedo rental, and growing inventory replenishment/distribution
needs for our U.S. store operations. We have finalized design of
our initial build-out, which will include approximately 380,000
square feet. Ground breaking is expected to begin this month and
be operationally complete by the beginning of fiscal year 2001.


STORE INFORMATION(a)

April 29, 2000 May 1, 1999(a)
Number of Sq. Ft. Number of Sq. Ft.
Stores (000's) Stores (000's)

Men's Wearhouse 452 2,302.4 420 2,085.8
Moores Clothing for Men 113 675.3 111 659.5
K&G Men's Center 48 836.9 45 813.4
The Suit Warehouse 4 34.5 4 34.5

Total 617 3,849.1 580 3,593.2

(a) Excludes 6 C&R and Moores stores closed in FY 1999

Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's business attire. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories. The company also operates the second largest manufacturing facility of men's suits, sport coats and slacks in Canada, with all production used to supply the Company's stores.

Please refer to the attached income statements and balance sheet for the first quarter reported and pro-forma operating results and financial condition of the company.

For additional information on Men's Wearhouse, contact the company on the World Wide Web at www.menswearhouse.com.

This press release contains forward-looking information. The forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements may be significantly impacted by various factors, including unfavorable local, regional and national economic developments, severe weather conditions, aggressive advertising or marketing activities of competitors and other factors described herein and in the company's annual report on Form 10-K for the year ended January 29, 2000.

 

THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED
APRIL 29, 2000 AND MAY 1, 1999
(In thousands, except per share data)

Fiscal Year
------------------------------------------------
ACTUAL PRO FORMA (1)
2000 1999 2000 1999
--------- --------- --------- ---------

Net sales $ 287,876 $ 258,864 $ 287,876 $ 258,864
Cost of goods sold,
including buying and
occupancy costs 183,563 167,429 183,563 167,429
Gross margin 104,313 91,435 104,313 91,435

Selling, general
and administrative
expenses 82,083 72,604 82,083 72,604

One-time transaction
costs -- 5,552 -- --

Duplicative store
closing costs -- 2,933 -- --

Operating income 22,230 10,346 22,230 18,831

Interest (income)
expense, net (62) 672 (62) 672

Earnings before
income taxes 22,292 9,674 22,292 18,159

Provision for
income taxes 8,864 5,924 8,864 7,452

Net earnings
before
extraordinary item 13,428 3,750 $ 13,428 $ 10,707

Extraordinary item -
loss on early
extinguishment of
debt, net of tax
effect -- 2,912

Net earnings $ 13,428 $ 838

Earnings per basic
share:
Income before
extraordinary
item $ 0.32 $ 0.09 $ 0.32 $ 0.26
Extraordinary
item -- (0.07)
Net income $ 0.32 $ 0.02

Earnings per diluted
share:
Income before
extraordinary
item $ 0.32 $ 0.09 $ 0.32 $ 0.25
Extraordinary
item -- (0.07)
Net income $ 0.32 $ 0.02

Weighted average
shares outstanding:
Basic 41,766 41,803 41,766 41,803
Diluted 42,379 42,538 42,379 42,538


(1) Pro forma net earnings before extraordinary item excludes one-time
transaction costs, duplicative store closing costs and related tax
effects associated with the combination with Moores Retail Group
Inc.



THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

April 29, May 1,
2000 1999
-------- --------

ASSETS

Current assets:
Cash $ 63,268 $ 39,297
Inventory 352,405 335,090
Other current assets 24,487 26,971
-------- --------
Total current assets 440,160 401,358
Property and equipment, net 143,992 126,901
Other assets 49,504 47,464
-------- --------
Total assets $633,656 $575,723
======== ========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities $148,462 $144,981
Long term debt 52,397 64,726
Other liabilities 12,554 9,511
Shareholders' equity 420,243 356,505
-------- --------
Total liabilities and equity $633,656 $575,723
======== ========