The Men's Wearhouse (MW) Q2 2012 Earnings Call September 06, 2012 9:00 am ET Executives Ken Dennard - Founder and Managing Partner George A. Zimmer - Co-Founder and Executive Chairman Diana M. Wilson - Interim Chief Financial Officer, Executive Vice President and Treasurer Douglas S. Ewert - Chief Executive Officer, President and Director Analysts Brian J. Tunick - JP Morgan Chase & Co, Research Division Richard Ellis Jaffe - Stifel, Nicolaus & Co., Inc., Research Division Margaret B. Whitfield - Sterne Agee & Leach Inc., Research Division Janet Kloppenburg John D. Kernan - Cowen and Company, LLC, Research Division David M. Mann - Johnson Rice & Company, L.L.C., Research Division Joseph Altobello - Oppenheimer & Co. Inc., Research Division Betty Y. Chen - Wedbush Securities Inc., Research Division Susan R. Sansbury - Miller Tabak + Co., LLC, Research Division Bruce M. Zessar - Advisory Research Holdings, Inc. Presentation Operator
There'll also be a replay of today's call available via webcast on the company's website, which is, of course, menswearhouse.com in the Investor Relations section. Plus there'll be a recorded replay available by phone, which will be available for week, and that information is in yesterday's release.Please note that the information reported on this call speaks only as of today, September 6, 2012, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening. In addition, the comments made by the management of Men's Wearhouse today during this conference call may contain forward-looking statements within the meaning of the United States federal securities laws. These forward-looking statements reflect the current views of management of Men's Wearhouse, however, various risks, uncertainties and contingencies could cause actual results, performance or achievements to differ materially from those expressed in the statements made by management. The listener is encouraged to read the company's annual report on Form 10-K, its quarterly reports on Form 10-Q or -- and current reports on Form 8-K to understand certain of those risks, uncertainties and contingencies. And now with that all being said, I'd like to turn the call over to Men's Wearhouse founder and Executive Chairman, George Zimmer. George. George A. Zimmer Thanks, Ken, and good morning. On our last quarterly call, we reaffirmed our annual guidance of $2.70 to $2.78 earnings per share. Today, we're raising our annual guidance to $2.74 to $2.80, and later in the call, Diana Wilson, our Interim CFO, will talk about both the financial results and outlook. Obviously, there's a difference in how the Street and the company anticipate quarterly estimates. The simple answer is this: As we close unproductive tuxedo rental stores, our productivity and profitability rises in the fourth quarter. In fact, this year, our fourth quarter will be positive. And although we understand that a mid-single-digit comp increase this year at Men's Wearhouse stores is not last year's double-digit increase, we feel it's a good number considering overall macroeconomic conditions and the fact that we are comparing against such a favorable increase last year. Not only is our comp good at Men's Wearhouse stores, but at Moores stores as well. That makes sense because we run Moores like an extension of Men's Wearhouse.
And finally, we've launched the new television campaign at the end of the first quarter, which appears to be effective. It's simple. Me, driving around downtown, passing a lot of young, hip, and even tattooed customers promoting modern fit clothing, which Doug will comment on during his remarks.During our last call, it was too early to judge the new campaign, but now we are excited about it. This is the umbrella marketing strategy covering television and social media for Men's Wearhouse, Men's Wearhouse and Tux, and Moores stores, which represent over 75% of the total company volume. Before hearing from Doug Ewert, our CEO, let me introduce our Interim CFO, Diana Wilson. Diana began her career in public accounting, working with our Vice Chairman David Edwab, before joining Men's Wearhouse. Diana has been with Men's Wearhouse for 13 years and has been looking at our financial statements for longer than that. Certainly, we all wish Neill well in his new job at Francesca's. And I'm sure you will appreciate Diana's accounting background and attention to detail as reflected in her career path from Chief Accounting Officer to her new position as Interim CFO. Diana? Diana M. Wilson Thanks, George, and good morning, everyone. We hope you've had a chance to review the information in the press release we issued yesterday evening. We have come to realize that there hasn't always been enough time to study our results before the conference call, so we've revised our earnings release and conference call schedule. We believe this will improve the quarterly reporting process and will provide our shareholders, analysts and others that follow us more time to digest our results before we have our conference call. And we plan to make our comments more focused on the performance of our retail segment brand, as well as our Corporate Apparel segment to provide better insight into our consolidated results. Read the rest of this transcript for free on seekingalpha.com