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Market Update : 
The Men’s Wearhouse Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 9:08 PM ET June 21 2009


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Operator

Thank you. Our next question comes from the line of Brian Tunick with JPMorgan. Please go ahead.

Evren Kopelman – JPMorgan

Thanks. It is Evren Kopelman for Brian. Good afternoon. The first question, if you look at the old After Hours locations like your 478, do you feel like that is a good number of locations or do you think about shrinking that, I guess what would be more of a ideal size. And can you also comment on how the merchandise you put in into those stores, how that is performing in terms of listing the average sales volume?

George A. Zimmer

Well, that was the merchandise I referred to a moment ago and that just has really arrived in the second quarter. This is really now what I have to say about it at this time. Let me comment on your first question about the 470 After Hours, formerly After Hours locations, now Men’s Wearhouse and Tux. There definitely has been and will continue to be a decrease in the number of those stores for the simple reason that most customers prefer coming to a regular Men’s Wearhouse store as opposed to these. But of course each store is separate. But it would seem to me that if you were to look out over the next several years you would continue to see modest growth in regular Men’s Wearhouse stores and modest decrease in Men’s Wearhouse and Tux stores. Where that ends up I couldn’t be sure but if you said to me might bring it down to 440 Tuxedo rental stores, absolutely. But Men’s Wearhouse will be able to go over 600 stores because now that we rent Tuxedos in our regular stores we can open our cut down regular stores in smaller markets.

Operator

Thank you. Our next question comes from the line of Richard Jaffe with Stifel Nicolaus. Please go ahead.

Richard Jaffe – Stifel Nicolaus & Co.

Thanks very much. I guess a question about is the path you have chosen to go down which was the BOGO or buy one get one free designer promotion and it’s something that you guys have effectively avoided most of your career. Obviously these are unique circumstances but I am wondering what your thinking is regarding promotion and price point discount for the second half and as you anniversary these BOGO events.

George A. Zimmer

Richard, I mean not that anybody watches our television close enough to know exactly what we are doing but we are running a combination of spots, some are branding spots and some talk about something that is promotional. Currently it is a summer sale. It has been a BOGO. Those by the way are 15 seconds long and our branding spots tend to be 30.

We plan on having a similar posture I think going forward – an ongoing promotional environment including BOGO but certainly not exclusive BOGO although it may appear that way until the fall that we are exclusively BOGO. We are not.

Richard Jaffe – Stifel Nicolaus & Co.

Okay. So, it is some but not the same. Should we anticipate that other things will be used or other tricks up your sleeve so to speak?

George A. Zimmer

Exactly.

Richard Jaffe – Stifel Nicolaus & Co.

Okay. Thanks very much.

Operator


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