Men’s Wearhouse Reports Fiscal 2014 Results

FREMONT, Calif., March 11, 2015 /PRNewswire/ — The Men’s Wearhouse (NYSE: MW) today announced consolidated financial results for the fiscal fourth quarter and year ended January 31, 2015.

GAAP loss per share for fiscal fourth quarter 2014 was $0.75 and adjusted loss per share was $0.03 excluding non-operating items((1)).

GAAP loss per share for fiscal year 2014 was $0.01 and adjusted EPS was $2.58 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 robust earnings performance of our legacy brands. Fueling this performance in the fourth quarter are comparable sales increases of 6.8% at Men’s Wearhouse, 8.6% at Moores and 6.8% at K&G. And while Jos. A. Bank’s comparable sales were negative 6.6%, they were above our expectations.”

Ewert added, “We are extremely proud of the work done to date to incorporate Jos. A. Bank. We have made significant progress on integrating Jos. A. Bank into the infrastructure of Men’s Wearhouse and have developed a robust process around synergy identification and realization. In the nine months since the acquisition, Jos. A. Bank has transitioned many of the back office functions, began store training programs, began the work to instill its employees with the Men’s Wearhouse culture, and launched tuxedo rental in all its Jos. A. Bank locations. All of this progress was made while exceeding our initial synergy run-rate target of $15 million as we ended the year with run-rate synergies of $35 million.

“Fiscal year 2015 will be the year of strategic transition for Jos. A. Bank as we work on unlocking customer facing opportunities. Much of this work lies in systems conversions which will be completed in the second half of 2015. As such, we are looking forward to the growth in sales and gross margins that we anticipate achieving in late 2015 and into 2016.

“We continue to be confident in our 2017 EPS guidance which has now been increased to include K&G. We expect profits to accelerate in 2016 with rebounding sales after three consecutive years of negative comps at Jos. A. Bank, realized cost synergies and modest growth in the legacy business. With the stable platform our legacy brands provide, we are able to focus on this transitional year for Jos. A. Bank as we complete the transition and integration of all the key areas during the year,” concluded Ewert.

FOURTH QUARTER AND FISCAL YEAR SALES REVIEW

The tables that follow are a summary of net sales for fiscal 2014 fourth quarter and full year ended January 31, 2015. 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 owned or open throughout the same month of the prior period and include e-commerce net sales.

Fourth Quarter Net Sales Summary – Fiscal 2014 ———————————————- Net Sales Comparable Sales Change ——— —————– Net Sales Change Current Quarter Current Quarter Prior Year Quarter Total Retail Segment 74.1% $368.7 $865.9 ——————– —- —— —— Men’s Wearhouse 8.4% $29.3 $379.4 6.8% (2.5%) ————— — —– —— — —– Jos. A. Bank n/a $337.0 $337.0 (6.6%) 1.8% ———— ———– —— —— —– — Moores 0.8% $0.5 $59.0 8.6% (2.3%) —— — —- —– — —– K&G 1.6% $1.3 $82.6 6.8% (7.7%) — — —- —– — —– MW Cleaners 8.0% $0.6 $7.9 ———– — —- —- Corporate Apparel Segment (1.4%) ($0.9) $62.4 —————– —– —– —– Total Company 65.6% $367.8 $928.4 ————- —- —— —— Full Year Net Sales Summary – Fiscal 2014 —————————————– Net Sales Comparable Sales Change ——— —————– Net Sales Change Current Year Current Year Prior Year Total Retail Segment 34.5% $768.8 $2,995.2 ——————– —- —— ——– Men’s Wearhouse 5.0% $80.6 $1,686.9 3.9% 0.7% ————— — —– ——– — — Jos. A. Bank n/a $684.0 $684.0 (2.5%) (3.7%) ———— — —— —— —– —– Moores 1.6% $4.0 $258.3 8.6% (4.1%) —— — —- —— — —– K&G (0.6%) ($2.2) $334.0 3.7% (5.5%) — —– —– —— — —– MW Cleaners 7.8% $2.3 $31.9 ———– — —- —– Corporate Apparel Segment 4.3% $10.6 $257.4 —————– — —– —— Total Company 31.5% $779.3 $3,252.5 ————- —- —— ——–

Net sales at our largest brand, Men’s Wearhouse, which represented 41% of total fourth quarter sales, were up 8.4% from last year’s fourth quarter and comparable sales increased 6.8%. On a comparable basis, increases in clothing product average unit retails (or the net selling price per unit) and average transactions per store more than offset a decrease in units sold per transaction. The higher margin tuxedo rental revenues comparable sales increased 5.7% in the fourth quarter of 2014.

Jos. A. Bank was 36% of the Company’s total fourth quarter sales. Comparable sales for the fourth quarter decreased 6.6% with decreases in clothing product average unit retails and average transactions per store offset somewhat by an increase in units sold per transaction. Moores, our Canadian retail brand, was 6% of the total fourth quarter sales and had a comparable sales increase of 8.6% due to an increase in clothing product average unit retails that more than offset a decrease in average transactions per store. However, net sales for Moores only increased 0.8% due to an unfavorable change in the currency translation rate. K&G was 9% of the Company’s total fourth quarter sales with a comparable sales increase of 6.8% due to an increase in average transactions per store which more than offset a decrease in average unit retails. The Corporate Apparel segment, which represented 7% of total fourth quarter sales, had a sales decrease of 1.4%.

FISCAL FOURTH QUARTER CONSOLIDATED RESULTS REVIEW

SalesTotal net sales increased 65.6%, or $367.8 million, to $928.4 million from $560.6 million.

Retail segment sales for the quarter increased by 74.1%, or $368.7 million, due to $337.0 million in sales at Jos. A. Bank and an increase in comparable sales at all other retail brands.

Corporate apparel sales decreased by 1.4%, or $0.9 million.

Gross MarginTotal GAAP gross margin was $347.5 million. Adjusted consolidated gross margin of $363.3 million increased $154.5 million or 74.0% compared to the prior year quarter. The total adjusted gross margin rate increased 188 basis points primarily due to increased margin rates in all of our legacy retail brands.

Adjusted retail segment gross margin increased $155.5 million, or 81.6%. The adjusted retail segment gross margin rate increased 164 basis points including Jos. A. Bank and increased 158 basis points excluding Jos. A. Bank.

Corporate apparel gross margin decreased $1.0 million, or 5.5%, and decreased 122 basis points.

AdvertisingAdvertising expenses increased $26.7 million to $59.2 million, an increase of 82.1%, or 58 basis points, compared to the prior quarter primarily due to Jos. A. Bank advertising expenses.

SG&AGAAP SG&A expenses increased $104.2 million, including the $42.6 million arbitration settlement, to $330.3 million, an increase of 46.1% but a decrease of 475 basis points. Adjusted SG&A expenses were 687 basis points favorable to the prior year with the leverage of Jos. A. Bank SG&A primarily achieved from the higher mix of retail clothing sales in the fourth quarter. Additionally, all legacy retail brands had favorable basis point decreases. On an absolute dollar basis, adjusted SG&A increased by $72.1 million, or 34.8%, primarily due to the addition of Jos. A. Bank SG&A and payroll related costs at Men’s Wearhouse.

Operating Income/LossGAAP operating loss was $42.0 million compared to GAAP operating loss of $49.7 million last year. Adjusted operating income was $24.9 million, an increase of $55.7 million, or 180.9%, over the prior year adjusted operating loss of $30.8 million.

Interest and TaxesNet interest expense for the fourth quarter was $26.5 million.

The effective tax rate for the fourth quarter was 47.5%. Excluding the impact of acquisition and integration costs, the adjusted effective tax rate was 19.4%. The 19.4% rate is a benefit as the fourth quarter is a loss.

Net LossGAAP net loss was $35.9 million compared to GAAP net loss of $30.4 million last year. GAAP loss per share was $0.75 compared to $0.64 in the prior year quarter. Adjusted net loss was $1.3 million, or $0.03 adjusted loss per share, compared to adjusted net loss of $17.9 million, or $0.38 adjusted loss per share last year.

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

Total sales decreased 5.4% to $337.0 million from prior year fourth quarter. Total clothing margin excluding occupancy costs decreased 165 basis points to 51.6%.

Occupancy costs increased from $35.7 million in the prior year, or 10.0% of total sales, to $37.1 million, or 11.0% 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 YEAR RESULTS REVIEW

SalesTotal net sales increased 31.5%, or $779.3 million, to $3,252.5 million, up from $2,473.2 million.

Year-to-date retail segment sales increased by 34.5%, or $768.8 million, due to $684.0 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 4.3%, or $10.6 million.

Gross MarginTotal GAAP gross margin was $1,358.6 million. Adjusted consolidated gross margin of $1,401.9 million was an increase of $312.9 million, or 28.7%, compared to the prior year. The total adjusted gross margin rate decreased 93 basis points primarily due to lower margins at Jos. A. Bank.

Adjusted retail segment gross margin increased $309.7 million, or 30.5%. The adjusted retail segment gross margin rate decreased 137 basis points including Jos. A. Bank and increased 49 basis points excluding Jos. A. Bank.

Corporate apparel gross margin increased $3.2 million, or 4.4%, and increased 4 basis points.

AdvertisingAdvertising expenses increased $67.2 million to $168.3 million, an increase of 66.5% or 109 basis points, primarily due to the Jos. A. Bank advertising expenses and the brand advertising associated with the rollout of Joseph Abboud.

SG&AGAAP SG&A expenses increased $268.3 million to $1,117.1 million, an increase of 31.6% and 3 basis points. Adjusted SG&A expenses were 312 basis points favorable to the prior year. On an absolute dollar basis adjusted SG&A increased by $156.6 million, or 19.1%, primarily due to the addition of Jos. A. Bank SG&A.

Operating IncomeGAAP operating income was $73.2 million compared to GAAP operating income of $129.6 million last year. Adjusted operating income was $257.6 million, an increase of $89.1 million, or 52.9%, over the prior year adjusted operating income of $168.5 million.

Interest and TaxesNet interest expense for the year was $65.7 million.

The effective tax rate for the year was 101.8%. Excluding the impact of non-deductible transaction costs, the adjusted effective tax rate was 34.8%.

Net Earnings/LossGAAP net loss was $0.4 million compared to GAAP net earnings of $83.8 million last year. GAAP loss per share was $0.01 compared to a GAAP diluted earnings of $1.70 last year. Adjusted net earnings were $124.8 million, or $2.58 adjusted diluted earnings per share, compared to adjusted net earnings of $109.3 million, or $2.21 adjusted diluted earnings per share last year.

BALANCE SHEET

In connection with the acquisition of Jos. A. Bank, debt at the end of the fourth quarter was approximately $1.7 billion.

Inventories increased $338.9 million to $938.3 million from $599.5 million due primarily to Jos. A. Bank and inventory related to Joseph Abboud. The remaining increase was primarily driven by new store openings at Men’s Wearhouse.

Capital expenditures for the fiscal year 2014 were $96.4 million compared to $108.2 million in the prior year.

HISTORICAL CONSOLIDATED BASELINES OF OPERATING RESULTS

We are providing historical baselines of operating results for fiscal year 2014. These baselines include Jos. A. Bank operations for the full year and exclude items we believe are not indicative of our core operating results as well as certain items related to the acquisition of Jos. A. Bank. We plan to evaluate future results against this historical baseline.

Historical Consolidated Baseline for Fiscal Year 2014 by Quarter (1) ——————————————————————- Q1 Q2 Q3 Q4 Fiscal Year 2014 Baseline Net sales: Retail clothing product $632,136 $646,189 $634,447 $767,264 $2,680,036 Tuxedo rental services 106,147 165,130 132,690 47,417 451,384 Alteration and other services 52,788 51,953 52,025 51,258 208,024 —— —— —— —— ——- Total retail sales 791,071 863,272 819,162 865,939 3,339,444 Corporate apparel clothing product sales 56,825 66,656 71,475 62,420 257,376 —— —— —— —— ——- Total net sales 847,896 929,928 890,637 928,359 3,596,820 Gross margin: Retail clothing product 357,691 358,961 358,566 406,502 1,481,720 Tuxedo rental services 89,083 137,234 109,704 37,522 373,543 Alteration and other services 15,983 14,773 14,852 14,825 60,433 Occupancy costs (108,405) (113,651) (115,536) (112,816) (450,408) ——– ——– ——– ——– ——– Total retail gross margin 354,352 397,317 367,586 346,033 1,465,288 Corporate apparel clothing product 17,078 20,024 22,388 17,228 76,718 —— —— —— —— —— Total gross margin 371,430 417,341 389,974 363,261 1,542,006 Advertising expense 41,987 47,130 42,075 59,194 190,386 Selling, general and administrative expenses 262,099 267,728 262,214 279,173 1,071,215 Operating income $67,344 $102,483 $85,685 $24,894 $280,405 ======= ======== ======= ======= ======== (1) See Use of Non-GAAP Financial Measures for reconciliation to GAAP.

FINANCIAL GUIDANCE

The Company has increased its 2017 guidance to include K&G operations and now expects adjusted EPS to be in the range of $5.75 to $6.25.

For fiscal year 2015, the Company expects adjusted diluted earnings per share in a range of $2.70 to $2.90, an increase of 13.9% to 22.4% over the prior year historical baseline diluted earnings per share of $2.37. The historical baseline diluted earnings per share is calculated using adjusted weighted average diluted shares of 48.2 million, adjusted tax rate of 34.8% and the expected fiscal year 2015 net interest expense of approximately $105 million.

The Company expects Jos. A. Bank comparable sales to continue to be down throughout the first half of the year with improvement in the second half and gross margin to increase for the year but follow a similar pattern to sales.

CALL AND WEBCAST INFORMATION

At 9:00 a.m. Eastern time on Thursday, March 12, 2015, management will host a conference call and real time webcast to discuss fiscal 2014 fourth quarter and full year results.

To access the conference call, dial 412-902-0030. 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 March 19, 2015 by calling 201-612-7415 and entering the access code of 13602155#, or a webcast archive will be available free on the website for approximately 90 days.

STORE INFORMATION January 31, 2015 February 1, 2014 —————- —————- Number of Sq. Ft. Number of Sq. Ft. Stores Stores (000’s) (000’s) —— —— Men’s Wearhouse 698 3,955.7 661 3,774.3 ——— — ——- — ——- Jos. A. Bank (a) 636 2,922.2 – – —- — ——- — — Men’s Wearhouse and Tux 210 291.2 248 344.0 ——— — —– — —– Moores, Clothing for Men 123 779.0 121 769.3 ——– — —– — —– K&G (b) 91 2,164.4 94 2,228.8 — — ——- — ——- Total 1,758 10,112.5 1,124 7,116.4

(a) Excludes 15 franchise stores. (b) 83 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 1,758 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.

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) 776-7575ir@tmw.com

Kelly DiltsMen’s Wearhouse, SVP, Finance & IR

Ken DennardDennard ? 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. A reconciliation of the Jos. A. Bank selected metrics is included in the table at the end of this release.

THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) EARNINGS (Unaudited) For the Three Months Ended January 31, 2015 and February 1, 2014 (In thousands, except per share data) Three Months Ended Variance —————— ——– % of % of Basis 2014 Sales 2013 Sales Dollar % Points —- —– —- —– —— — —— Net sales: Retail clothing product $767,264 82.65% $419,130 74.77% $348,134 83.06% 7.88 Tuxedo rental services 47,417 5.11% 43,504 7.76% 3,913 8.99% (2.65) Alteration and other services 51,258 5.52% 34,642 6.18% 16,616 47.96% (0.66) —— —- —— —- —— —– —– Total retail sales 865,939 93.28% 497,276 88.71% 368,663 74.14% 4.56 Corporate apparel clothing product 62,420 6.72% 63,276 11.29% (856) (1.35%) (4.56) —— —- —— —– —- —— —– Total net sales 928,359 100.00% 560,552 100.00% 367,807 65.62% 0.00 Total cost of sales 580,856 62.57% 351,758 62.75% 229,098 65.13% (0.18) Gross margin (a): Retail clothing product 390,854 50.94% 221,676 52.89% 169,178 76.32% (1.95) Tuxedo rental services 37,522 79.13% 35,585 81.80% 1,937 5.44% (2.67) Alteration and other services 14,825 28.92% 6,669 19.25% 8,156 122.30% 9.67 Occupancy costs (112,926) (13.04%) (73,375) (14.76%) (39,551) (53.90%) 1.71 ——– ——- ——- ——- ——- ——- —- Total retail gross margin 330,275 38.14% 190,555 38.32% 139,720 73.32% (0.18) Corporate apparel clothing product 17,228 27.60% 18,239 28.82% (1,011) (5.54%) (1.22) —— —– —— —– —— —— —– Total gross margin 347,503 37.43% 208,794 37.25% 138,709 66.43% 0.18 Advertising expenses 59,194 6.38% 32,499 5.80% 26,695 82.14% 0.58 Selling, general and administrative expenses 330,259 35.57% 226,013 40.32% 104,246 46.12% (4.75) Operating loss (41,950) (4.52%) (49,718) (8.87%) 7,768 (15.62%) 4.35 Net interest (26,522) (2.86%) (1,048) (0.19%) (25,474) 2430.73% (2.67) ——- —— —— —— ——- ——- —– Loss before income taxes (68,472) (7.38%) (50,766) (9.06%) (17,706) 34.88% 1.68 Benefit for income taxes (32,550) (3.51%) (20,571) (3.67%) (11,979) 58.23% 0.16 ——- ——- —— —- Net loss including non-controlling interest (35,922) (3.87%) (30,195) (5.39%) (5,727) 18.97% 1.52 Net earnings attributable to non-controlling interest – 0.00% (252) (0.04%) 252 NM 0.04 — —- —- —— — — —- Net loss attributable to common shareholders $(35,922) (3.87%) $(30,447) (5.43%) $(5,475) 17.98% 1.56 ======== ====== ======== ====== ======= ===== ==== Net loss per diluted common share attributable to common shareholders $(0.75) $(0.64) ====== ====== Weighted-average diluted common shares outstanding: 48,043 47,411 ====== ====== (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 (LOSS) EARNINGS (Unaudited) For the Twelve Months Ended January 31, 2015 and February 1, 2014 (In thousands, except per share data) Twelve Months Ended Variance ——————- ——– % of % of Basis 2014 Sales 2013 Sales Dollar % Points —- —– —- —– —— — —— Net sales: Retail clothing product $2,365,463 72.73% $1,667,535 67.42% $697,928 41.85% 5.30 Tuxedo rental services 442,866 13.62% 411,864 16.65% 31,002 7.53% (3.04) Alteration and other services 186,843 5.74% 147,023 5.94% 39,820 27.08% (0.20) ——- —- ——- —- —— —– —– Total retail sales 2,995,172 92.09% 2,226,422 90.02% 768,750 34.53% 2.07 Corporate apparel clothing product 257,376 7.91% 246,811 9.98% 10,565 4.28% (2.07) ——- —- ——- —- —— —- —– Total net sales 3,252,548 100.00% 2,473,233 100.00% 779,315 31.51% 0.00 Total cost of sales 1,893,934 58.23% 1,384,223 55.97% 509,711 36.82% 2.26 Gross margin (a): Retail clothing product 1,266,913 53.56% 925,578 55.51% 341,335 36.88% (1.95) Tuxedo rental services 357,888 80.81% 347,556 84.39% 10,332 2.97% (3.57) Alteration and other services 52,616 28.16% 33,294 22.65% 19,322 58.03% 5.52 Occupancy costs (395,521) (13.21%) (290,896) (13.07%) (104,625) (35.97%) (0.14) ——– ——- ——– ——- ——– ——- —– Total retail gross margin 1,281,896 42.80% 1,015,532 45.61% 266,364 26.23% (2.81) Corporate apparel clothing product 76,718 29.81% 73,478 29.77% 3,240 4.41% 0.04 —— —– —— —– —– —- —- Total gross margin 1,358,614 41.77% 1,089,010 44.03% 269,604 24.76% (2.26) Advertising expenses 168,266 5.17% 101,083 4.09% 67,183 66.46% 1.09 Selling, general and administrative expenses 1,117,138 34.35% 848,798 34.32% 268,340 31.61% 0.03 Goodwill impairment charge – 0.00% 9,501 0.38% (9,501) NM (0.38) Operating income 73,210 2.25% 129,628 5.24% (56,418) (43.52%) (2.99) Net interest (65,676) (2.02%) (2,820) (0.11%) (62,856) 2228.94% (1.91) Loss on extinguishment of debt (2,158) (0.07%) – 0.00% (2,158) NM (0.07) —— —— — —- —— — —– Earnings before income taxes 5,376 0.17% 126,808 5.13% (121,432) (95.76%) (4.96) Provision for income taxes 5,471 0.17% 42,591 1.72% (37,120) (87.15%) (1.55) —– —- —— —- ——- ——- —– Net (loss) earnings including non-controlling interest (95) (0.00%) 84,217 3.41% (84,312) (100.11%) (3.41) Net earnings attributable to non-controlling interest (292) (0.01%) (426) (0.02%) 134 31.46% 0.01 —- —— —- —— — —– —- Net (loss) earnings attributable to common shareholders $(387) (0.01%) $83,791 3.39% $(84,178) (100.46%) (3.40) ===== ====== ======= ==== ======== ======== ===== Net (loss) earnings per diluted common share attributable to common shareholders $(0.01) $1.70 ====== ===== Weighted-average diluted common shares outstanding: 47,899 49,162 ====== ====== (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) January 31, February 1, 2015 2014 —- —- ASSETS —— Current assets: Cash and cash equivalents $62,261 $59,252 Accounts receivable, net 73,266 63,153 Inventories 938,336 599,486 Other current assets 175,574 93,206 ——- Total current assets 1,249,437 815,097 Property and equipment, net 566,074 408,162 Tuxedo rental product, net 132,672 142,816 Goodwill 887,936 126,003 Intangible assets, net 668,259 58,027 Other assets 42,380 5,125 —— —– Total assets $3,546,758 $1,555,230 ========== LIABILITIES AND EQUITY ———————- Current liabilities: Accounts payable $209,867 $148,762 Accrued expenses and other current liabilities 268,935 175,797 Income taxes payable 1,609 730 Current maturities of long-term debt 11,000 10,000 —— Total current liabilities 491,411 335,289 Long-term debt 1,676,232 87,500 Deferred taxes and other liabilities 409,326 109,292 ——- ——- Total liabilities 2,576,969 532,081 ——— Equity: Preferred stock – – Common stock 482 476 Capital in excess of par 440,907 412,043 Retained earnings 537,263 572,712 Accumulated other comprehensive (loss) income (5,671) 27,311 Treasury stock, at cost (3,192) (3,407) ——- Total equity attributable to common shareholders 969,789 1,009,135 Non-controlling interest – 14,014 — Total equity 969,789 1,023,149 ——- Total liabilities and equity $3,546,758 $1,555,230 ==========

THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Twelve Months Ended January 31, 2015 and February 1, 2014 (In thousands) Twelve Months Ended ——————- 2014 2013 —- —- CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) earnings including non-controlling interest $(95) $84,217 Non-cash adjustments to net (loss) earnings: Depreciation and amortization 112,659 88,749 Tuxedo rental product amortization 34,424 32,266 Deferred financing costs amortization 4,903 523 Discount on long-term debt amortization 982 – Loss on extinguishment of debt 2,158 – Loss on disposition of assets 12,328 158 Goodwill impairment charge – 9,501 Other 4,175 22,347 Changes in operating assets and liabilities (76,770) (48,831) ——– Net cash provided by operating activities 94,764 188,930 —— CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (96,420) (108,200) Acquisition of business, net of cash (1,491,393) (94,906) Proceeds from sales of property and equipment 160 4,127 Net cash used in investing activities (1,587,653) (198,979) ———– CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from new term loan 1,089,000 – Payments on new term loan (2,750) – Proceeds from asset-based revolving credit facility 348,000 – Payments on asset-based revolving credit facility (348,000) – Proceeds from bond issuance 600,000 – Deferred financing costs (51,080) (1,776) Proceeds from previous term loan – 100,000 Payments on previous term loan (97,500) (2,500) Cash dividends paid (34,785) (35,549) Purchase of non-controlling interest (6,651) – Proceeds from issuance of common stock 8,082 10,739 Tax payments related to vested deferred stock units (6,940) (3,865) Excess tax benefits from share-based plans 3,766 2,145 Repurchases of common stock (251) (152,129) —– Net cash provided by (used in) financing activities 1,500,891 (82,935) ——— Effect of exchange rate changes (4,993) (3,827) ——- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,009 (96,811) Balance at beginning of period 59,252 156,063 Balance at end of period $62,261 $59,252 =======

THE MEN’S WEARHOUSE, INC. AND SUBSIDIARIES UNAUDITED NON-GAAP FINANCIAL MEASURES (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. We have provided non-GAAP financial measures including adjusted statements of earnings information, historical consolidated baselines of operating results for fiscal year 2014 and Jos. A. Bank selected metrics. A reconciliation of this non-GAAP information to our actual results follows and may not sum due to rounded numbers.

GAAP to Adjusted Statements of Earnings Information GAAP to Adjusted – Three Months Ended January 31, 2015 —————————————————— GAAP Acquisition Purchase Other (2) Adjusted Results & Integration (1) Acctg Allocation Results ——- —————- —————- ——- Net sales $928,359 $ – $ – $ – $928,359 Total retail gross margin 330,275 – 15,758 – 346,033 Corporate apparel clothing product 17,228 – – – 17,228 —— — — — —— Total gross margin 347,503 – 15,758 – 363,261 Advertising expense 59,194 – – – 59,194 Selling, general and administrative expenses 330,259 (6,922) (2,469) (41,695) 279,173 Operating (loss) income (41,950) 6,922 18,227 41,695 24,894 Net interest (26,522) – – – (26,522) Loss on extinguishment of debt – – – – – (Benefit) provision for income taxes (32,550) 14,007 3,529 14,699 (315) Net (loss) earnings including non- controlling interest (35,922) (7,085) 14,698 26,996 (1,313) Net earnings attributable to non- controlling interest – – – – – — — — — — Net (loss) earnings attributable to common shareholders $(35,922) $(7,085) $14,698 $26,996 $(1,313) ======== ======= ======= ======= ======= Net (loss) earnings per diluted common share attributable to common shareholders $(0.75) $(0.15) $0.30 $0.56 $(0.03) ====== ====== ===== ===== ====== (1) Acquisition & integration relates to Jos. A. Bank and Joseph Abboud. (2) Other relates to a Joseph Abboud licensee arbitration settlement, K&G strategic alternative review, costs related to store closure and cost reduction initiatives offset by a settlement with Visa/ Mastercard. GAAP to Adjusted – Three Months Ended February 1, 2014 —————————————————— GAAP Acquisition Purchase Other (2) Adjusted Results & Integration (1) Acctg Allocation Results ——- —————- —————- ——- Net sales $560,552 $ – $ – $ – $560,552 Total retail gross margin 190,555 – – – 190,555 Corporate apparel clothing product 18,239 – – – 18,239 —— — — — —— Total gross margin 208,794 – – – 208,794 Advertising expense 32,499 – – – 32,499 Selling, general and administrative expenses 226,013 (2,316) – (16,643) 207,054 Operating (loss) income (49,718) 2,316 – 16,643 (30,759) Net interest (1,048) – – – (1,048) Loss on extinguishment of debt – – – – – (Benefit) provision for income taxes (20,571) (1,066) – 7,433 (14,204) Net (loss) earnings including non- controlling interest (30,195) 3,382 – 9,211 (17,602) Net earnings attributable to non- controlling interest (252) – – – (252) —- — — — —- Net (loss) earnings attributable to common shareholders $(30,447) $3,382 $ – $9,211 $(17,854) ======== ====== ============= ====== ======== Net (loss) earnings per diluted common share attributable to common shareholders $(0.64) $0.07 $ – $0.19 $(0.38) ====== ===== =========== ===== ====== (1) Acquisition & integration relates to Joseph Abboud. (2) Other includes costs associated with various strategic projects, the shut down of K&G e-commerce and separation costs with executives.

GAAP to Adjusted – Twelve Months Ended January 31, 2015 ——————————————————- GAAP Acquisition Purchase Other (2) Adjusted Results & Integration (1) Acctg Allocation Results ——- —————- —————- ——- Net sales $3,252,548 $ – $ – $ – $3,252,548 Total retail gross margin 1,281,896 10,552 32,747 – 1,325,194 Corporate apparel clothing product 76,718 – – – 76,718 —— — — — —— Total gross margin 1,358,614 10,552 32,747 – 1,401,912 Advertising expense 168,266 – – – 168,266 Selling, general and administrative expenses 1,117,138 (88,165) (6,107) (46,836) 976,029 Operating income 73,210 98,717 38,854 46,836 257,617 Net interest (65,676) – – – (65,676) Loss on extinguishment of debt (2,158) 2,158 – – – Provision for income taxes 5,471 31,536 13,533 16,313 66,853 Net (loss) earnings including non- controlling interest (95) 69,339 25,321 30,523 125,088 Net earnings attributable to non- controlling interest (292) – – – (292) —- — — — —- Net (loss) earnings attributable to common shareholders $(387) $69,339 $25,321 $30,523 $124,796 ===== ======= ======= ======= ======== Net (loss) earnings per diluted common share attributable to common shareholders $(0.01) $1.44 $0.53 $0.63 $2.58 ====== ===== ===== ===== ===== (1) Acquisition & integration relates to Jos. A. Bank and Joseph Abboud. (2) Other relates to a Joseph Abboud licensee arbitration settlement, K&G strategic alternative review, costs related to store closure and cost reduction initiatives offset by a settlement with Visa/Mastercard. GAAP to Adjusted – Twelve Months Ended February 1, 2014 ——————————————————- GAAP Acquisition Purchase Other (2) Adjusted Results & Integration (1) Acctg Allocation Results ——- —————- —————- ——- Net sales $2,473,233 $ – $ – $ – $2,473,233 Total retail gross margin 1,015,532 – – – 1,015,532 Corporate apparel clothing product 73,478 – – – 73,478 —— — — — —— Total gross margin 1,089,010 – – – 1,089,010 Advertising expense 101,083 – – – 101,083 Selling, general and administrative expenses 858,299 (6,746) – (32,101) 819,452 Operating income 129,628 6,746 – 32,101 168,475 Net interest (2,820) – – – (2,820) Loss on extinguishment of debt – – – – – Provision for income taxes 42,591 2,497 – 10,837 55,926 Net earnings including non- controlling interest 84,217 4,249 – 21,264 109,730 Net loss attributable to non-controlling interest (426) – – – (426) —- — — — —- Net earnings attributable to common shareholders $83,791 $4,249 $ – $21,264 $109,304 ======= ====== ============= ======= ======== Net earnings per diluted common share attributable to common shareholders $1.70 $0.09 $ – $0.43 $2.21 ===== ===== =========== ===== ===== (1) Acquisition & integration relates to Joseph Abboud. (2) Other includes the non-cash write-off of K&G goodwill, costs associated with the shut down of K&G e-commerce, separation costs with executives, various strategic projects and store closure costs partially offset by a gain on the sale of an office building.

GAAP to Historical Baselines of Operating Results – Fiscal Year 2014 by Quarter and Full Year Historical Consolidated Baseline First Quarter FY 2014 – Three Months Ended May 3, 2014 ————————————————————————————— MW GAAP JOSB GAAP Purchase Acquisition, Historical Results Results (1) Accounting Integration & Baseline Net sales: Adjustments (2) Other (3) Retail clothing product $433,024 $199,112 $ – $ – $632,136 Tuxedo rental services 101,663 4,484 – – 106,147 Alteration and other services 38,962 13,826 – – 52,788 —— —— — — —— Total retail sales 573,649 217,422 – – 791,071 Corporate apparel clothing product 56,825 – – – 56,825 —— — — — —— Total net sales 630,474 217,422 – – 847,896 Gross margin: Retail clothing product 241,547 116,135 9 – 357,691 Tuxedo rental services 86,346 2,737 – – 89,083 Alteration and other services 11,240 4,743 – – 15,983 Occupancy costs (72,847) (34,474) (1,084) – (108,405) ——- ——- —— — ——– Total retail gross margin 266,286 89,141 (1,075) – 354,352 Corporate apparel clothing product 17,078 – – 17,078 —— — — —— Total gross margin 283,364 89,141 (1,075) – 371,430 Advertising expense 28,771 13,216 – – 41,987 Selling, general and administrative expenses 227,312 136,630 – (101,843) 262,099 Operating income (loss) $27,281 $(60,705) $(1,075) $101,843 $67,344 ======= ======== ======= ======== ======= (1) As filed in Jos. A. Bank’s 10-Q and reclassified to be consistent with Men’s Wearhouse reporting. (2) Adjustments to Jos. A. Bank’s 10-Q reported balances for change from FIFO to average weighted cost and elimination of tenant improvement allowance credits. (3) Other relates primarily to strategic alternative review and SG&A reduction program costs. Historical Consolidated Baseline Second Quarter FY 2014 – Three Months Ended August 2, 2014 ——————————————————————————————- GAAP JOSB Results Purchase Acquisition, Historical Results 5/4 – 6/17/14 (1) Accounting Integration & Baseline Net sales: Adjustments (2) Other (3) Retail clothing product $530,728 $115,461 $ – $ – $646,189 Tuxedo rental services 161,096 4,034 – – 165,130 Alteration and other services 44,598 7,355 – – 51,953 —— —– — — —— Total retail sales 736,422 126,850 – – 863,272 Corporate apparel clothing product 66,656 – – – 66,656 —— — — — —— Total net sales 803,078 126,850 – – 929,928 Gross margin: Retail clothing product 287,374 64,038 7,549 – 358,961 Tuxedo rental services 134,868 2,366 – – 137,234 Alteration and other services 11,699 3,074 – – 14,773 Occupancy costs (95,423) (17,450) (778) – (113,651) ——- ——- —- — ——– Total retail gross margin 338,518 52,028 6,771 – 397,317 Corporate apparel clothing product 20,024 – – 20,024 —— — — —— Total gross margin 358,542 52,028 6,771 – 417,341 Advertising expense 38,226 8,904 – – 47,130 Selling, general and administrative expenses 277,612 33,946 (906) (42,924) 267,728 Operating income (loss) $42,704 $9,178 $7,677 $42,924 $102,483 ======= ====== ====== ======= ======== (1) Reclassified to be consistent with Men’s Wearhouse reporting. (2) Adjustments to 10-Q reported balances primarily for inventory write-up elimination, change from FIFO to average weighted cost and elimination of tenant improvement allowance credits. (3) Other relates primarily to strategic alternative review and SG&A reduction program costs.

Historical Consolidated Baseline Third Quarter FY 2014 – Three Months Ended November 1, 2014 ——————————————————————————————– GAAP Purchase Acquisition, Historical Results (1) Accounting Integration & Baseline Net sales: Adjustments (2) Other (3) Retail clothing product $634,447 $ – $ – $634,447 Tuxedo rental services 132,690 – – 132,690 Alteration and other services 52,025 – – 52,025 —— — — —— Total retail sales 819,162 – – 819,162 Corporate apparel clothing product 71,475 – – 71,475 —— — — —— Total 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 10,217 10,552 367,586 Corporate apparel clothing product 22,388 – 22,388 —— — —— Total gross margin 369,205 10,217 10,552 389,974 Advertising expense 42,075 – – 42,075 Selling, general and administrative expenses 281,955 (2,733) (17,008) 262,214 Operating income $45,175 $12,950 $27,560 $85,685 ======= ======= ======= ======= (1) As filed in the 10-Q. (2) Adjustments to 10-Q reported balances primarily for inventory write-up elimination and elimination of tenant improvement allowance credits. (3) Other relates primarily to acquisition, integration, strategic alternative review, and SG&A reduction program costs. Historical Consolidated Baseline Fourth Quarter FY 2014 – Three Months Ended January 31, 2015 ——————————————————————————————— GAAP Purchase Acquisition, Historical Results Accounting Integration & Baseline Net sales: Adjustments (2) Other (3) Retail clothing product $767,264 $ – $ – $767,264 Tuxedo rental services 47,417 – – 47,417 Alteration and other services 51,258 – – 51,258 —— — — —— Total retail sales 865,939 – – 865,939 Corporate apparel clothing product 62,420 – – 62,420 —— — — —— Total net sales 928,359 – – 928,359 Gross margin: Retail clothing product 390,854 15,648 – 406,502 Tuxedo rental services 37,522 – – 37,522 Alteration and other services 14,825 – – 14,825 Occupancy costs (112,926) 110 – (112,816) ——– — — ——– Total retail gross margin 330,275 15,758 – 346,033 Corporate apparel clothing product 17,228 – – 17,228 —— — — —— Total gross margin 347,503 15,758 – 363,261 Advertising expense 59,194 – – 59,194 Selling, general and administrative expenses 330,259 (2,469) (48,617) 279,173 Operating (loss) income $(41,950) $18,227 $48,617 $24,894 ======== ======= ======= ======= (1) As filed in the 10-Q. (2) Adjustments to 10-Q reported balances primarily for inventory write-up elimination and elimination of tenant improvement allowance credits. (3) Other relates primarily to a Joseph Abboud licensee arbitration settlement, acquisition and integration costs, strategic alternative review, and SG&A reduction program costs.

Historical Consolidated Baseline Fiscal Year 2014 – Twelve Months Ended January 31, 2015 —————————————————————————————- MW GAAP JOSB Q1 GAAP JOSB Results Purchase Acquisition, Historical Results Results (1) 5/4 – 6/17/14 (1) Accounting Integration & Baseline Net sales: Adjustments (2) Other (3) Retail clothing product $2,365,463 $199,112 $115,461 $ – $ – $2,680,036 Tuxedo rental services 442,866 4,484 4,034 – – 451,384 Alteration and other services 186,843 13,826 7,355 – – 208,024 ——- —— —– — — ——- Total retail sales 2,995,172 217,422 126,850 – – 3,339,444 Corporate apparel clothing product 257,376 – – – – 257,376 ——- — — — — ——- Total net sales 3,252,548 217,422 126,850 – – 3,596,820 Gross margin: Retail clothing product 1,266,913 116,135 64,038 34,634 – 1,481,720 Tuxedo rental services 357,888 2,737 2,366 – 10,552 373,543 Alteration and other services 52,616 4,743 3,074 – – 60,433 Occupancy costs (395,521) (34,474) (17,450) (2,963) – (450,408) ——– ——- ——- —— — ——– Total retail gross margin 1,281,896 89,141 52,028 31,671 10,552 1,465,288 Corporate apparel clothing product 76,718 – – – – 76,718 —— — — — — —— Total gross margin 1,358,614 89,141 52,028 31,671 10,552 1,542,006 Advertising expense 168,266 13,216 8,904 – – 190,386 Selling, general and administrative expenses 1,117,138 136,630 33,946 (6,107) (210,392) 1,071,215 Operating income (loss) $73,210 $(60,705) $9,178 $37,778 $220,944 $280,405 ======= ======== ====== ======= ======== ========

(1) Reclassified to be consistent with Men’s Wearhouse reporting. (2) Adjustments to 10-Q reported balances primarily for inventory write-up elimination, change from FIFO to average weighted cost and elimination of tenant improvement allowance credits. (3) Other relates primarily to a Joseph Abboud licensee arbitration settlement, acquisition and integration costs, strategic alternative review, and SG&A reduction program costs.

Jos. A. Bank Selected Metrics Jos. A. Bank Selected Metrics – Three Months Ended February 1, 2014 and January 31, 2015 —————————————————————————————- Q4 FY 2013 Adjustments (2) Q4 FY 2013 Q4 FY 2014 Adjustments (4) Q4 FY 2014 as Reported (1) Selected Metrics GAAP Selected Metrics $% (3) $% (3) Net sales: Retail clothing product $336,191 $ – $336,191 94.4% $319,800 $ – $319,800 94.9% Tuxedo and Alteration sales 19,923 19,923 5.6% 17,218 17,218 5.1% —— —— — —— —— — Total retail net sales 356,114 – 356,114 100.0% 337,018 – 337,018 100.0% Gross margin: Retail clothing product 177,901 1,049 178,950 53.2% 149,300 15,649 164,949 51.6% Tuxedo and alteration margin 8,953 – 8,953 44.9% 7,190 – 7,190 41.8% Occupancy costs (33,675) (2,043) (35,718) -10.0% (37,258) 110 (37,148) -11.0% Total retail gross margin 153,179 (994) 152,185 42.7% 119,232 15,759 134,991 40.1% Maintained product margin (net sales of retail clothing product less landed cost of goods) $192,060 57.7% $176,895 55.8%

(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.

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Men’s Wearhouse

Web site: http://www.menswearhouse.com/