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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - TAILORED BRANDS INCa14-25085_38k.htm

Exhibit 99.1

 

GRAPHIC

News Release

 

 

 

Contact:

 

Investor Relations

 

(281) 776-7575

 

ir@tmw.com

For Immediate Release

 

 

Kelly Dilts

 

Men’s Wearhouse, SVP, Finance & IR

 

 

 

Ken Dennard

 

Dennard · Lascar Associates

 

MEN’S WEARHOUSE REPORTS

FISCAL 2014 THIRD QUARTER AND NINE MONTH RESULTS

 

·                  Jos. A. Bank integration ahead of schedule

 

·                  Legacy business continues to be strong

 

·                  K&G’s strategic alternatives review completed

 

·                  Conference call scheduled for Thursday, December 11th at 9:00 a.m. Eastern time

 

FREMONT, CA — December 10, 2014 — 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.

 


(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.

 

1



 

“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

 

 

 

 

 

 

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.

 

3



 

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.

 


(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.

 

4



 

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.

 

5



 

STORE INFORMATION

 

 

 

November 1, 2014

 

November 2, 2013

 

February 1, 2014

 

 

 

Number of
Stores

 

Sq. Ft.
(000’s)

 

Number of
Stores

 

Sq. Ft.
(000’s)

 

Number of
Stores

 

Sq. Ft.
(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.

 

6



 

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.

 

7



 

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.

 

8



 

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.

 

9



 

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

 

 

10



 

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

 

 

11



 

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

 

 

 

Adjusted

 

 

 

Results

 

& Integration

 

Acctg Items

 

Other (1)

 

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.

 

12



 

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

 

Total Company - Three Months Ended November 2, 2013

 

 

 

GAAP

 

Acquisition

 

Purchase Price

 

 

 

Adjusted

 

 

 

Results

 

& Integration

 

Acctg Items

 

Other (2)

 

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.

 

13



 

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

 

Total Company - Nine Months Ended November 1, 2014

 

 

 

GAAP

 

Acquisition

 

Purchase Price

 

 

 

Adjusted

 

 

 

Results

 

& Integration

 

Acctg Items

 

Other (1)

 

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.

 

14



 

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

 

Total Company - Nine Months Ended November 2, 2013

 

 

 

GAAP

 

Acquisition

 

Purchase Price

 

 

 

Adjusted

 

 

 

Results

 

& Integration

 

Acctg Items

 

Other (2)

 

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.

 

15



 

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

 

 

 

Q3 FY 2013

 

Q3 FY 2014

 

 

 

Q3 FY 2014

 

 

 

as Reported (1)

 

Adjustments (2)

 

Selected Metrics

 

GAAP

 

Adjustments (4)

 

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.

 

16