Key questions and answers from the fourth quarter earnings call conducted by The Men’s Wearhouse Inc. on March 12, 2008.

Lauren Cooks Levitan (Cowen and Company): What would be the drivers of much bigger erosion in EBIT margin for the legacy business?

Neill P. Davis: The only other dynamic that is at play here is the degree of same-store sale decline and the effects that it is having on the expense deleverage. We are spending more money in advertising, which is different from what was done in the prior cycle. When we had a compression in same-store sales, we retreated from advertising. We are choosing a different path this time.

Richard E. Jaffe (Stifel Nicolaus): Comment on the young man’s initiative, either in broad terms or merchandise categories?

George A. Zimmer: A brand other than Wilke-Rodriguez, our own, is Jones New York City is the young men’s brand. Young men’s is a flat-front pants, that is one of the significant changes from the clothing.

Richard E. Jaffe (Stifel Nicolaus): Comment on the outlook for K&G and initiatives to get that business back on track?

George A. Zimmer: We have hired a design team. We have actually let the president of the division go and replace him. We are bringing a new chief merchandising officer. We are bringing in more designer and famous brands, particularly in our women’s wear section.

Betty Chen (Wedbush Morgan Securities): Can you talk about the marketing spend that you plan on making?

George A. Zimmer: For the first time in many years, we are actually going to raise the percentage on a consolidated basis that we spend in advertising. We are not going to spend more at K&G specifically. We are spending more at Men's Wearhouse and Men's Wearhouse Tux, and in our Internet advertising targeted to the younger customer.

David M. Mann (Johnson Rice & Company): Any views on what happened in Canada and why you would expect that business to rebound so quickly?

George A. Zimmer: The precipitous drop in Canada, which was a shock to everybody concerned, must have been triggered to some degree by a general sense in Canada that as the Canadian dollar strengthened and retail prices were not adjusted, they sort of rebelled against shopping in retail stores and our business was stronger, meaning Men's Wearhouse business, along the northern tier as Canadians came into the United States.

David M. Mann (Johnson Rice & Company): Comment on the higher inventory levels at the Men's Wearhouse business and why that is not a cause for concern for future margins?

Neill P. Davis: What you are seeing is the flow of goods coming in and hitting our warehouse in anticipation of our spring selling season.

Analyst (J.P. Morgan): Can you talk about what the potential margin could be for After Hours, given cost savings and synergies and other opportunities like that?

Neill P. Davis: Tuxedo rentals is not a segmentable, separate, identifiable line of business. It is yet again only another service that we are offering to our employees. Now we are doing it to a thousand store fronts as opposed to 500.

Our ability to continue to give you the kind of visibility we have in the past relative to After Hours has become much more diluted because we have integrated the two businesses.

The distribution centers that we now have supporting this business that we acquired from After Hours are also supporting the Men's Wearhouse stores. So it is impossible to disaggregate our business and therefore give you the same kind of visibility we did last year.

Marc Bettinger (Stanford Group): Can you talk about private label and direct sourcing, where you are now and where the opportunity for 2008 is?

Neill P. Davis: We are increasing our penetrations or private label as it relates to branded, but with the opportunities we have with the dislocation of the economy and our continued ability to acquire and grow our business, we have an opportunity with additional brands and designer brands and we are going to build that up this year.

Lauren Cooks Levitan (Cowen and Company): What gives you confidence that the driver of the weakness is not macro and rather specific to the integration issues?

Neill P. Davis: The driver to the softness is clearly integration related and it is directly related to leads that we are given and accumulates in David’s Bridal. And we have had some operational issues.