On Aug. 22, Men's Wearhouse (NYSE:MW) released second-quarter earnings for the period ended Aug. 4.

  • Total sales increased 23.6% to $569.3 million. Same-store sales inched 1.1% higher in the U.S., while Canadian comps expanded a robust 8.4%.
  • Profit at Men's Wearhouse jumped 52.2% to $54.2 million in the second quarter.
  • The company approved the replenishment of its share repurchase plan with an additional $90.3 million to be added to the existing $9.7 million.
  • Just like last quarter, Men's Wearhouse raised its guidance for the year; this time to a range of $2.98 to $3.02 per share.
  • Men's Wearhouse is currently an impressive four-star stock (out of a possible five) in Motley Fool CAPS, as is competitor Jos. A. Bank (NASDAQ:JOSB).

(Figures in millions, except per-share data.)

Income Statement Highlights

Q2 2007

Q2 2006

Change

Sales

$569.3

$460.6

23.6%

Net Profit

$54.2

$35.6

52.2%

EPS

$1.00

$0.65

53.8%

Diluted Shares

54.4

54.5

(0.3%)

Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006

Change*

Gross Margin

48.2%

43.2%

5.0

Operating Margin

14.5%

12.1%

2.5

Net Margin

9.5%

7.7%

1.8

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q2 2007

Q2 2006

Change

Cash + ST Invest.

$134.9

$249.4

(45.9%)

Inventory

$460.8

$429.9

7.2%

Liabilities

Q2 2007

Q2 2006

Change

Long-Term Debt

$82.0

$206.4

(60.3%)

The balance sheet reflects the company's health.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$111.7

$22.6

394.7%

Capital Expenditures

$52.7

$24.8

112.4%

Free Cash Flow

$59.0

($2.2)

N/A

Free cash flow is a Fool's best friend.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Fool contributor Mike Cianciolo held no position in any of the companies in this article. The Fool has a disclosure policy.