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Earnings Calls: 
Men’s Wearhouse Earnings Call, Second Quarter 2008
Author: Maclintosh Kuhlengisa
123jump.com
Last Update: 6:40 PM ET August 28 2008


(Continued)

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The specialty retailer of men’s apparel reported a 4.2% decline in company sales performance to $545.3 million declined 4.2% from $569 million in 2007 as both clothing sales and tuxedo rental revenue dropped 4% and 5.3% respectively. EPS was 63 cents a share, down from 27% from $1.00 in the prior year on higher costs and lower sales.

 
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We know that there’s at least one large specialty store chain that is having trouble and it does not surprise us because whenever we go through these economic downturns there is a shake out in consolidation that occurs in 2009 and 2010.

Betty Chen (Wedbush Morgan Securities): Could you give us a little bit more information about the rental to retail conversion?

George Zimmer: The marketing spend tracks our sales, its reasonable to expect that it will go down in dollars slightly over the second half of the year and the mix is relatively stable.

We are continuing to be more and more excited with internet advertising which comes out of other electronic advertising. And on the R to R, it runs around 13% and that really is why we are making a whole new strategy to go after the millennials because we think that that number can be as high as 1005 if we get it right
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