This summary is based on the first quarter fiscal 2007 earnings call conducted by The Men’s Wearhouse Inc. (MW: chart) on May 22, 2007

Executive Vice President and Chief Financial Officer: Neill Davis

Chairman and Chief Executive Officer: George Zimmer

DRG&E: Ken Dennard

Key Investors Issues

- Earnings per share rose to 67 cents from 53 cents in the prior year.
- Quarterly revenue grew 14.42% over the last year to $496.1 million.
- During the quarter, the firm opened six net new stores, one at Men’s Wearhouse and five at K&G.

First Quarter Fiscal 2007 Financial Highlights

The first quarter includes partial results of the firm’s recent acquisition of After Hours, the chain of 509 stores.

The After Hours stores combined with the firm’s existing store base, makes Men’s Wearhouse the largest participant in the men’s formal wear rental industry, with over 1,100 storefronts, offering tuxedo rentals throughout North America. The after acquisition funding costs, was accretive to diluted earnings per share in the quarter by 11%, the equivalent of 8 cents per share.

Excluding the accretive impact of After Hours in the quarter, the core businesses produced earnings per share increase of 26%, to 67 cents, versus 53 cents per share last year.

This improvement was achieved in spite of a negative 1.3% same-store sale result for the U.S.-based retail stores, and was sharply better than the mid-quarter updated guidance. The drivers to this guidance upside were several fold.

- Better than anticipated results at the traditional Men’s Wearhouse stores in April;
- Lower payroll costs at K&G, and response to slower sales trends;
- Stronger merchandise margins in Canada, coupled with a much stronger than anticipated Canadian dollar.

Total company sales increased 14.42% to $496.1 million.

Apparel sales, representing 81.3% of total sales, increased 5.5%. Tuxedo revenues, representing 12.1% of total sales, increased 137.6%. These results include $26 million in rental revenues from After Hours, for the fiscal month of April 2007. Tuxedo rental revenues, excluding After Hours, increased 34.2%.

Comparable store sales declined 1.3% for United States-based stores, below the expectations of an increase of 1% to 2%.

This under planned performance is a reflection of soft traffic levels, and was most notable in men’s tailored clothing categories. The firm has also experienced regional weakness in California and Florida, which is believed to be related to the poor housing markets in both states. California and Florida represent approximately 20% of the firm’s retail apparel sales at its traditional Men’s Wearhouse stores.

Comparable store sales increased 5.8% for the company’s Canadian-based stores and it s in line with the initial guidance, and are a reflection of increases in both traffic, and average ticket.

Gross margin for the quarter increased 354 basis points to 45.61%, from 42.07%.

The company’s plan for the quarter, excluding After Hours, was based on an improvement of approximately 200 basis points and was driven by a continuation of better merchandise margins across all of its retail concepts. The firm achieved that plan in spite of a modest de-leverage from occupancy costs due to under-planned sales. The balance of the improvement in gross margin was related to the inclusion of After Hours results for the month of April. Gross margins in tuxedo rentals are far superior to that of the firm’s retail apparel businesses. The same not only holds true for After Hours.

Selling general and administrative expenses as a percentage of sales increased 105 basis points to 32.45% from 31.40%.