This summary is based on the second quarter fiscal 2007 earnings call conducted by Mens’ Wearhouse, Inc. (MW: chart) on August 22, 2007.

Chairman and CEO: George Zimmer
EVP, CFO, Treasurer and Principal Financial Officer: Neill P. Davis
Sr. VP, DRG&E: Karen Roan

Key Investors Issues

- EPS were $1 per share compared to 65 cents per share last year.
- Net income was $54.2 million compared to $35.6 million the same period a year ago.
- Sales rose 24% to $569.3 million from $460.6 million last year..

Second Quarter Highlights

The results for this year are being positively impacted by acquisition of After Hours Formalwear in April of 2007.

That acquisition after acquisition funding cost was accretive to earning per share in the quarter by 24%, equivalent of 24 cents per share. This was ahead of initial plan of 15 cents per share to 17 cents per share accretive impact and largely driven by realization of lower operating costs than initially anticipated.

Excluding the accretive impact of After Hours, core businesses produced earnings per share of 76 cents per share versus 65 cents per share last year.

This improvement was achieved on a modest same-store sales increase of 1.1% for US based retail stores, as well as continued strength from the company''s Canadian-based stores, Moores, with comparable store sales increasing 8.4%.

Total company sales increased 23.6% to $569.3 million.

The tuxedo rental revenues, representing 23.6% of total sales, increased approximately 200%, which is influenced by the addition of After Hours. Tuxedo rental revenues, excluding After Hours, increased 16.4%.

Comparable store sales increased 1.1% for United States based stores, at the high end of initial expectations of flat to plus 1%.

This performance versus plan is a reflection of stronger than expected results at Men''s Wearhouse stores, which was most visible in tailored clothing categories.

While traditional stores have improved relative to plan, K&G stores continue to be challenged as its same store sale results were down 6.9%; however, consistent with the tone achieved in the first quarter. Comparable store sales increased 8.4% for Canadian-based stores and were sharply ahead of initial guidance of plus 4 to plus 6. The strength of brand awareness in Canada along with a continuing favorable macroeconomic backdrop drove increases in both transaction and average ticket.

Gross margin increased 498 basis points to 48.21% from 43.23%.

The mix of revenues derived from tuxedo rentals has historically had a positive impact on gross margins, given the inherently stronger margin profile of the rental business as opposed to that of retail business.

- With the second quarter representing the seasonal peak of the rental business along with the acquisition of After Hours earlier in the year, the mix of rental revenues for the second quarter was 23.6% of consolidated sales versus a mix of 9.7% in the prior year quarter.
- Excluding the impact of After Hours, gross profit as a percentage of sales increased 60 basis points over the prior year and is a direct reflection of the success merchants have achieved in expanding maintained margins across all of retail concepts. This is being done principally on cost and not through price increases.
- Included in this gross margin improvement at core operations is a charge of approximately 66 basis points relating to strategy of achieving a global merchandising assortment for the combined tuxedo rental operations of After Hours and Men''s Wearhouse.
- Specifically, the company eliminated a number of tuxedo rentals stouts in inventory that the company does not believe would perform well on a combined basis. This action was faster and more aggressive than what the company had previously been planning to and done in order to accommodate new replacement product order flow.

Selling, general, and administrative expenses as percent of sales increased 253 basis points to 33.69% from 31.16%.

This increase is due to the inclusion of the operations of After Hours. However, excluding the impact of After Hours, the core business has generated 19 basis points of expense leverage, which was primarily due to receipt of proceeds of business interruption insurance reimbursements related to store closures in prior periods.