Moores Comp store sales to be flat to low single digit increase

09 Dec '09

5 min read

• Total inventories of $473.6 million declined 3.5% from the prior year third quarter of $490.8 million.
• Long term debt as of the end of the third quarter of 2009 was $43.0 million, a decrease of $45.6 million from the same period last year.

Fourth Quarter Fiscal 2009 Guidance:

The Company anticipates comparable store sales to decrease in the low single digit range at the Men's Wearhouse. The Moores comparable store sales are expected to be flat to a low single digit increase. The K&G comparable store sales are anticipated to be flat to a low single digit decrease. Total Company sales are expected to decline in low single digit range for the fourth quarter. This includes a low single digit decrease in tuxedo rental revenues.

Gross profit before occupancy costs for the fourth quarter is expected to decline in the low single digit range from the prior year as the Company begins to anniversary a more aggressive posture in strengthening its value proposition for customers. Occupancy costs are expected to be in a flat to a low single digit decrease for the fourth quarter in absolute dollar terms.

Selling, general and administrative expenses for the fourth quarter are expected to be in the range of flat to a 1% increase from the prior year, excluding advertising costs, a prior year pretax non-cash fixed asset impairment charge of $1.8 million and a prior year gain of $8.8 million associated with an eminent domain sale of a distribution center.

This guidance includes an estimated effective tax rate of approximately 39.0% for the fourth quarter. In the prior year, the Company realized an income tax benefit for the quarter due to favorable developments on certain outstanding income tax matters and a true up of the tax provision for the full year.

The Company's effective tax rate for the fiscal year is now estimated at 36.8%.

Weighted average fully diluted common shares outstanding are estimated to be 52.5 million for the fourth quarter and 52.3 million for the full year.

Men's Wearhouse

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