On March 7, Men's Wearhouse (NYSE:MW) released fourth-quarter earnings for the period ended Feb. 3.

  • Total sales grew 12%. Apparel sales and tuxedo rental revenues increased 10.6% and 26.1%, respectively. These figures include an extra week of selling in this year's quarter.
  • Same-store sales fell 1.5% in the U.S., but rose 9.8% in Canada.
  • The operating margin improved by 200 basis points, thanks to lower advertising, payroll, and employee healthcare expenses.
  • For fiscal 2007, sales are expected to increase by 5% to 7%, with projected EPS between $0.63 to $0.67.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$556.8

$497.0

12.0%

Net Profit

$52.3

$32.7

59.8%

EPS

$0.95

$0.60

58.3%

Diluted Shares

54.8

54.2

1.2%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

44.6%

41.3%

3.3

Operating Margin

13.1%

11.2%

2.0

Net Margin

9.4%

6.6%

2.8

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$179.7

$263.0

(31.7%)

Inventory

$448.6

$416.6

7.7%



Liabilities

Q4 2006

Q4 2005

Change

Long-Term Debt

$73.0

$205.3

(64.4%)



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$160.8

$154.6

4.0%

Capital Expenditures

$72.9

$66.5

9.6%

Free Cash Flow

$87.9

$88.1

(0.2%)



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