Men's Wearhouse Reports Fiscal 2005 Fourth Quarter and Year End Results

HOUSTON, March 1 /PRNewswire-FirstCall/ -- The Men's Wearhouse today announced its consolidated financial results for the fourth quarter and year ended January 28, 2006.

George Zimmer, founder, chairman and chief executive officer, stated, "Fiscal 2005 was a tremendous year for all of our stakeholders. In May 2005, we announced a three for two stock split, our fourth stock split since going public in 1992. In January 2006, the Board of Directors declared the company's first quarterly cash dividend of $0.05 per share as well as a $100 million stock buyback program. Also in January 2006, we were named once again by FORTUNE(R) magazine as one of the 100 Best Companies to Work for In America. Lastly, with this release today, we are reporting a historical level of net earnings -- exceeding the $100 million mark. We entered the year with the objective to leverage our brands and drive shareholder value, and we have made great strides towards both these goals."

FOURTH QUARTER RESULTS Fourth Quarter Sales Summary - Fiscal 2005 U.S. dollars, in millions Total Sales Comparable Store Current Year Prior Year Change % Sales Change % Total Company $497.0 $458.7 8.4% United States $437.4 $402.5 8.7% 6.1% Canada $59.6 $56.2 6.1%(A) 0.9% (A) Total sales change % using Canadian dollars was 2.2%.

Fourth quarter 2005 operating income was $55.6 million compared to $41.0 million last year, and net income was $32.7 million compared to $25.0 million last year. GAAP diluted earnings per share were $0.60 for the fourth quarter ended January 28, 2006 compared to $0.45 last year. Adjusted diluted earnings per share for the 2005 fiscal fourth quarter was $0.67 per share compared to adjusted diluted earnings per share of $0.47 last year. For additional information regarding adjusted diluted earnings per share, please see the table included below as well as the non-GAAP reconciliations provided at the end of this release.

Fourth Quarter Highlights * Comparable store sales of 6.1% for the company's United States based stores exceeded its initial guidance of 3% to 4% and were driven primarily by stronger than anticipated traffic levels, * Operating income and margin improvements exceeded the company's plan which was driven by a greater mix of regular priced merchandise sell thru as well as selling, general and administrative expense leverage, * The effective tax rate for the quarter was 40.8% and included a one time tax expense of $3.9 million, or $0.07 per diluted share, related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act. This one time tax expense was higher than previously estimated due to an increase in the estimated amount of withholding taxes due on the repatriated funds. YEAR-TO-DATE RESULTS Twelve Months Sales Summary - Fiscal 2005 U.S. dollars, in millions Total Sales Comparable Store Current Year Prior Year Change % Sales Change % Total Company $1,724.9 $1,546.7 11.5% United States $1,531.4 $1,371.8 11.6% 8.4% Canada $193.5 $174.9 10.6%(B) 2.7% (B) Total sales change % using Canadian dollars was 3.4%.

2005 operating income was $165.3 million compared to $118.1 million last year, and net income was $103.9 million compared to $71.4 million last year. GAAP diluted earnings per share were $1.88 for the year ended January 28, 2006 compared to $1.29 last year. Adjusted diluted earnings per share for fiscal 2005 were $2.04 per share compared to adjusted diluted earnings per share of $1.37 last year. For additional information regarding adjusted diluted earnings per share, please see the table included below as well as the non- GAAP reconciliations provided at the end of this release.

2006 GUIDANCE AND HIGHLIGHTS

The company is targeting adjusted diluted earnings per share growth between 12% to 15% increase, as outlined in the table below -- "Reconciliation of GAAP diluted EPS to Adjusted diluted EPS".

For the fiscal year ending February 3, 2007 (which is a 53-week year under the retail calendar), the company expects GAAP and adjusted diluted earnings per share in a range of $2.28 to $2.35 based on 2% to 4% same store sales increases in the U.S. and Canada, an effective tax rate of approximately 36.7% and fully diluted shares outstanding of 54.6 million.

Forecasted operating highlights for the full year include the following: * New store growth includes up to 15 net new K&G stores and 17 net new Men's Wearhouse stores. We also expect to relocate and remodel up to 25 U.S. stores during the year. Total square footage growth is expected in the mid to high single digit range, * Gross margins are planned to continue to increase and stem largely from the company's ongoing strategy of increasing the penetration of its private label apparel product offerings, * Modest selling, general and administrative expense deleveraging is anticipated as the company increases its investments in marketing programs and recognizes stock option expense under Statement of Financial Accounting Standards No. 123R, which the company adopted for the fiscal year 2006.

For the first quarter of 2006, the company expects 2% to 3% same store sales growth in the U.S. and in Canada and GAAP diluted earnings per share to be in the range of $0.44 to $0.46. Adjusted diluted earnings per share for the first quarter are expected to be in the range $0.46 to $0.48.

IMPACT OF SIGNIFICANT ITEMS

In order to aid investors' understanding of the Company's results and to improve comparability of financial information from period to period, explanatory non-GAAP reconciliation tables are included at the end of this press release. Summarized earnings per share information from these tables as well as guidance for the first quarter of fiscal 2006 and full year follows:

Summary Reconciliation of GAAP diluted EPS to Adjusted diluted EPS UNAUDITED HISTORICAL RESULTS (1) (2) Fiscal 2004 1Q 2Q 3Q 4Q YR GAAP Diluted EPS 0.27 0.33 0.23 0.45 1.29 Adjustments (3) Eddie Rodriguez Costs (4) 0.01 0.01 0.01 0.02 0.05 Technology Impairment 0.03 0.03 Stock Based Compensation (5) Reported in Earnings 53rd Week Impact (6) Foreign Earnings Repatriation (7) Discrete Tax Items (8) Net Adjustments 0.01 0.01 0.04 0.02 0.08 Adjusted Diluted EPS 0.28 0.35 0.27 0.47 1.37 UNAUDITED HISTORICAL RESULTS (1) (2) Fiscal 2005 1Q 2Q 3Q 4Q YR GAAP Diluted EPS 0.41 0.43 0.44 0.60 1.88 Adjustments (3) Eddie Rodriguez Costs (4) 0.05 0.06 0.11 Technology Impairment Stock Based Compensation (5) Reported in Earnings 0.01 0.01 0.01 0.03 53rd Week Impact (6) Foreign Earnings Repatriation (7) 0.07 0.07 Discrete Tax Items (8) (0.04) (0.02) (0.05) Net Adjustments 0.05 0.07 (0.02) 0.07 0.17 Adjusted Diluted EPS 0.46 0.50 0.41 0.67 2.04 GUIDANCE Fiscal 2006 1Q YR GAAP Diluted EPS 0.44 - 0.46 2.28 - 2.35 Adjustments (3) Eddie Rodriguez Costs (4) Technology Impairment Stock Based Compensation (5) Reported in Earnings 0.02 0.06 53rd Week Impact (6) (0.06) Foreign Earnings Repatriation (7) Discrete Tax Items (8) Net Adjustments 0.02 0.00 Adjusted Diluted EPS 0.46 - 0.48 2.28 - 2.35 1. Reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005. 2. Due to the effect of rounding, the sum of the per share amounts may not equal the effect of the adjustments. 3. Net of tax. 4. The company ceased operating its test of the new retail concept "Eddie Rodriguez" in the second quarter of fiscal 2005. 5. In fiscal 2005 the company did not grant non-qualified stock options (NQO's) to key employees, opting instead to issue primarily deferred stock units (DSU's). In 2006 the company will begin recognizing stock option expense as it adopted FASB No. 123R. Amounts reported in earnings for 2005 include primarily DSU's and for 2006 include mostly DSU's and NQO's. 6. Fiscal 2006 will include one additional week (for a total of 53 weeks) as the company reports its fiscal operations on a retail calendar. 7. The company incurred a one-time tax expense of $3.9 million ($0.07 per share) related to the repatriation of foreign earnings under the provisions of the American Jobs Creation Act. 8. Adjustments to tax reserves associated with favorable developments on certain outstanding income tax matters. CONFERENCE CALL AND WEBCAST INFORMATION

At 5:00 p.m. Eastern time today, company management will host a conference call and real time web cast to review the results for the fiscal fourth quarter and full year 2005 and provide an outlook for fiscal 2006.

To access the conference call, dial 303-262-2130. To access the live webcast presentation, visit the Investor Relations section of the company's website at http://www.menswearhouse.com/ . A telephonic replay will be available through March 8th by calling 303-590-3000 and entering the access code of 11052856, or a webcast archive will be available free on the website for approximately 90 days.

STORE INFORMATION January 28, 2006 January 29, 2005 Number Sq. Ft. Number Sq. Ft. of Stores (000's) of Stores (000's) Men's Wearhouse 526 2,898.4 517 2,825.3 Moores, Clothing for Men 116 719.8 114 705.3 K&G (C) 77 1,835.2 76 1,770.1 Total 719 5,453.4 707 5,300.7 (C) 52 and 43 stores, respectively, offering women's apparel.

Founded in 1973, Men's Wearhouse is one of North America's largest specialty retailers of men's apparel with 719 stores. The stores carry a full selection of designer, brand name and private label suits, sport coats, furnishings and accessories, including tuxedo rentals available in the Men's Wearhouse and Moores stores.

This press release contains forward-looking information. The forward- looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be significantly impacted by various factors, including unfavorable local, regional and national economic developments, disruption in retail buying trends due to homeland security concerns, severe weather conditions, aggressive advertising or marketing activities of competitors and other factors described herein and in the company's annual report on Form 10-K for the year ended January 29, 2005 and subsequent Forms 10-Q.

For additional information on Men's Wearhouse, please visit the company's website at http://www.menswearhouse.com/ .

CONTACT: Neill Davis, EVP & CFO, Men's Wearhouse (713) 592-7200 Ken Dennard, DRG&E (713) 529-6600 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) FOR THE TWELVE MONTHS ENDED January 28, 2006 AND January 29, 2005 (In thousands, except per share data) Twelve Months Ended % of % of 2005 Sales 2004 Sales Net sales $1,724,898 100.00% $1,546,679 100.00% Cost of goods sold, including buying, distribution and occupancy costs 1,027,763 59.58% 943,675 61.01% Gross margin 697,135 40.42% 603,004 38.99% Selling, general and administrative expenses 531,839 30.83% 484,916 31.35% Operating income 165,296 9.58% 118,088 7.63% Interest income (3,280) (0.19%) (1,526) (0.10%) Interest expense 5,888 0.34% 5,899 0.38% Earnings before income taxes 162,688 9.43% 113,715 7.35% Provision for income taxes 58,785 3.41% 42,359 2.74% Net earnings $103,903 6.02% $71,356 4.61% Net earnings per share (1): Basic $1.93 $1.32 Diluted $1.88 $1.29 Weighted average common shares outstanding (1): Basic 53,753 54,044 Diluted 55,365 55,220 (1) All earnings per share and weighted average common share information reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005. THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) FOR THE THREE MONTHS ENDED January 28, 2006 AND January 29, 2005 (In thousands, except per share data) Three Months Ended % of % of 2005 Sales 2004 Sales Net sales $496,978 100.00% $458,675 100.00% Cost of goods sold, including buying, distribution and occupancy costs 291,751 58.71% 278,293 60.67% Gross margin 205,227 41.29% 180,382 39.33% Selling, general and administrative expenses 149,658 30.11% 139,351 30.38% Operating income 55,569 11.18% 41,031 8.95% Interest income (1,158) (0.23%) (573) (0.12%) Interest expense 1,461 0.29% 1,695 0.37% Earnings before income taxes 55,266 11.12% 39,909 8.70% Provision for income taxes 22,532 4.53% 14,866 3.24% Net earnings $32,734 6.59% $25,043 5.46% Net earnings per share (1): Basic $0.62 $0.46 Diluted $0.60 $0.45 Weighted average common shares outstanding (1): Basic 52,862 54,222 Diluted 54,166 55,686 (1) All earnings per share and weighted average common share information reflects a three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005. THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) January 28, January 29, 2006 2005 ASSETS Current assets: Cash and cash equivalents $200,226 $165,008 Short-term investments 62,775 --- Accounts receivable, net 19,276 20,844 Inventories 416,603 406,225 Other current assets 30,732 34,920 Total current assets 729,612 626,997 Property and equipment, net 269,586 260,068 Goodwill 57,601 55,824 Other assets, net 66,475 50,433 Total assets $1,123,274 $993,322 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $238,085 $238,768 Long-term debt 205,251 130,000 Deferred taxes and other liabilities 52,405 55,706 Shareholders' equity 627,533 568,848 Total liabilities and equity $1,123,274 $993,322 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FOR THE TWELVE MONTHS ENDED January 28, 2006 AND January 29, 2005 (In thousands) Twelve Months Ended 2005 2004 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $103,903 $71,356 Non-cash adjustments to net earnings: Depreciation and amortization 61,874 53,319 Other 3,217 6,018 Changes in assets and liabilities (14,433) (714) Net cash provided by operating activities 154,561 129,979 CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (66,499) (85,392) Purchases of available-for-sale investments (106,850) --- Proceeds from sales of available-for-sale investments 44,075 --- Net assets acquired --- (11,000) Other (141) (556) Net cash used in investing activities (129,415) (96,948) CASH FLOWS FROM FINANCING ACTIVITIES: Bank borrowings 71,695 --- Principal payments on debt --- (1,000) Proceeds from issuance of common stock 24,262 10,876 Purchase of treasury stock (90,280) (11,186) Other (556) (276) Net cash provided by (used in) financing activities 5,121 (1,586) Effect of exchange rate changes 4,951 1,417 INCREASE IN CASH AND CASH EQUIVALENTS 35,218 32,862 Balance at beginning of period 165,008 132,146 Balance at end of period $200,226 $165,008 THE MEN'S WEARHOUSE, INC. AND SUBSIDIARIES UNAUDITED NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (A Non-GAAP Financial Measure) (In thousands, except per share amounts) Use of Non-GAAP Financial Measures

We have provided non-GAAP adjusted earnings per share information. This non-GAAP financial information is provided to enhance the user's overall understanding of the company's current financial performance. Specifically, we believe the non-GAAP adjusted results provide useful information to both management and investors by excluding certain expense items that we believe are not indicative of our core operating results. The non-GAAP financial information should be considered in addition to, not as a substitute for or as being superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP. The following are the reconciliations of this non-GAAP information and reflect the three-for-two stock split in the form of a stock dividend effective at the close of business on June 13, 2005. It should also be noted, the sum of the per share amounts may not equal due to the effect of rounding.

Non-GAAP Financial Measures (in thousands, except per share information) Three Months Ended May 1, 2004 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $360,729 $(412) $360,317 Cost of goods sold, including buying, distribution and occupancy costs 222,919 (634) 222,285 Gross margin 137,810 222 138,032 Selling, general and administrative expenses 112,742 (554) 112,188 Operating Income 25,068 776 25,844 Interest income (274) --- (274) Interest expense 1,351 --- 1,351 Earnings before income taxes 23,991 776 24,767 Provision for income taxes 8,936 289 9,225 Net earnings $15,055 $487 $15,542 Net earnings per diluted share $0.27 $0.01 $0.28 Weighted average diluted common shares outstanding 55,218 55,218 (1) The adjustments are as follows: a. $484 thousand, net of tax, or $0.01 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and b. $3 thousand, net of tax, related to stock based compensation. Non-GAAP Financial Measures (continued) Three Months Ended July 31, 2004 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $369,480 $(733) $368,747 Cost of goods sold, including buying, distribution and occupancy costs 224,024 (1,139) 222,885 Gross margin 145,456 406 145,862 Selling, general and administrative expenses 115,185 (696) 114,489 Operating Income 30,271 1,102 31,373 Interest income (363) --- (363) Interest expense 1,422 --- 1,422 Earnings before income taxes 29,212 1,102 30,314 Provision for income taxes 10,832 405 11,237 Net earnings $18,380 $697 $19,077 Net earnings per diluted share $0.33 $0.01 $0.35 Weighted average diluted common shares outstanding 54,937 54,937 Three Months Ended October 30, 2004 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $357,795 $(818) $356,977 Cost of goods sold, including buying, distribution and occupancy costs 218,439 (1,488) 216,951 Gross margin 139,356 670 140,026 Selling, general and administrative expenses 117,638 (2,795) 114,843 Operating Income 21,718 3,465 25,183 Interest income (316) --- (316) Interest expense 1,431 --- 1,431 Earnings before income taxes 20,603 3,465 24,068 Provision for income taxes 7,725 1,296 9,021 Net earnings $12,878 $2,169 $15,047 Net earnings per diluted share $0.23 $0.04 $0.27 Weighted average diluted common shares outstanding 55,038 55,038 (1) The adjustments are as follows: a. $669 thousand, net of tax, or $0.01 diluted earnings per share net operating losses from the Eddie Rodriguez stores and b. $28 thousand, net of tax, related to stock based compensation. (2) The adjustments are as follows: a. $785 thousand, net of tax, or $0.01 diluted earnings per share in net operating losses from the Eddie Rodriguez stores b. $23 thousand, net of tax, related to stock based compensation and c. $1.361 million, net of tax or $0.03 diluted earnings per share related to the impairment of certain technology assets. Non-GAAP Financial Measures (continued) Three Months Ended January 29, 2005 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $458,675 $(1,215) $457,460 Cost of goods sold, including buying, distribution and occupancy costs 278,293 (1,870) 276,423 Gross margin 180,382 655 181,037 Selling, general and administrative expenses 139,351 (868) 138,483 Operating Income 41,031 1,523 42,554 Interest income (573) --- (573) Interest expense 1,695 --- 1,695 Earnings before income taxes 39,909 1,523 41,432 Provision for income taxes 14,866 567 15,433 Net earnings $25,043 $956 $25,999 Net earnings per diluted share $0.45 $0.02 $0.47 Weighted average diluted common shares outstanding 55,686 55,686 Twelve Months Ended January 29, 2005 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $1,546,679 $(3,178) $1,543,501 Cost of goods sold, including buying, distribution and occupancy costs 943,675 (5,132) 938,543 Gross margin 603,004 1,954 604,958 Selling, general and administrative expenses 484,916 (4,913) 480,003 Operating Income 118,088 6,867 124,955 Interest income (1,526) --- (1,526) Interest expense 5,899 --- 5,899 Earnings before income taxes 113,715 6,867 120,582 Provision for income taxes 42,359 2,557 44,916 Net earnings $71,356 $4,310 $75,666 Net earnings per diluted share $1.29 $0.08 $1.37 Weighted average diluted common shares outstanding 55,220 55,220 (1) The adjustments are as follows: a. $933 thousand, net of tax, or $0.02 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and b. $23 thousand, net of tax, related to stock based compensation. (2) The adjustments are as follows: a. $2.872 million, net of tax, or $0.05 diluted earnings per share in net operating losses from the Eddie Rodriguez stores b. $77 thousand, net of tax, related to stock based compensation and c. $1.361 million, net of tax, or $0.03 diluted earnings per share related to the impairment of certain technology assets. Non-GAAP Financial Measures (continued) Three Months Ended April 30, 2005 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $411,649 $(1,006) $410,643 Cost of goods sold, including buying, distribution and occupancy costs 245,866 (1,631) 244,235 Gross margin 165,783 625 166,408 Selling, general and administrative expenses 128,909 (4,036) 124,873 Operating Income 36,874 4,661 41,535 Interest income (794) --- (794) Interest expense 1,487 --- 1,487 Earnings before income taxes 36,181 4,661 40,842 Provision for income taxes 13,477 1,736 15,213 Net earnings $22,704 $2,925 $25,629 Net earnings per diluted share $0.41 $0.05 $0.46 Weighted average diluted common shares outstanding 55,835 55,835 Three Months Ended June 30, 2005 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $423,576 $(785) $422,791 Cost of goods sold, including buying, distribution and occupancy costs 255,280 (3,485) 251,795 Gross margin 168,296 2,700 170,996 Selling, general and administrative expenses 129,892 (3,495) 126,397 Operating Income 38,404 6,195 44,599 Interest income (771) --- (771) Interest expense 1,512 --- 1,512 Earnings before income taxes 37,663 6,195 43,858 Provision for income taxes 13,277 2,183 15,460 Net earnings $24,386 $4,012 $28,398 Net earnings per diluted share $0.43 $0.07 $0.50 Weighted average diluted common shares outstanding 56,490 56,490 (1) The adjustments are as follows: a. $2.886 million, net of tax, or $.05 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and b. $39 thousand, net of tax, related to stock based compensation. (2) The adjustments are as follows: a. $3.379 million, net of tax, or $0.06 diluted earnings per share in net operating losses from the Eddie Rodriguez stores and b. $633 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation. Non-GAAP Financial Measures (continued) Three Months Ended October 29, 2005 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $392,695 $--- $392,695 Cost of goods sold, including buying, distribution and occupancy costs 234,866 --- 234,866 Gross margin 157,829 --- 157,829 Selling, general and administrative expenses 123,380 (928) 122,452 Operating Income 34,449 928 35,377 Interest income (557) --- (557) Interest expense 1,428 --- 1,428 Earnings before income taxes 33,578 928 34,506 Provision for income taxes 9,499 2,278 11,777 Net earnings $24,079 $(1,350) $22,729 Net earnings per diluted share $0.44 $(0.02) $0.41 Weighted average diluted common shares outstanding 54,971 54,971 Three Months Ended January 28, 2006 (2) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $496,978 $--- $496,978 Cost of goods sold, including buying, distribution and occupancy costs 291,751 --- 291,751 Gross margin 205,227 --- 205,227 Selling, general and administrative expenses 149,658 (939) 148,719 Operating Income 55,569 939 56,508 Interest income (1,158) --- (1,158) Interest expense 1,461 --- 1,461 Earnings before income taxes 55,266 939 56,205 Provision for income taxes 22,532 (2,631) 19,901 Net earnings $32,734 $3,570 $36,304 Net earnings per diluted share $0.60 $0.07 $0.67 Weighted average diluted common shares outstanding 54,166 54,166 (1) The adjustments are as follows: a. $666 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation and b. ($2.016) million or ($0.04) diluted earnings per share in discrete tax items. (2) The adjustments are as follows: a. $556 thousand, net of tax, or $0.01 diluted earnings per share related to stock based compensation b. ($898) thousand or ($0.02) diluted earnings per share in discrete tax items and c. $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense. Non-GAAP Financial Measures (continued) Twelve Months Ended January 28, 2006 (1) NON-GAAP GAAP NON-GAAP Adjusted Results Adjustments Results Net sales $1,724,898 $(1,791) $1,723,107 Cost of goods sold, including buying, distribution and occupancy costs 1,027,763 (5,116) 1,022,647 Gross margin 697,135 3,325 700,460 Selling, general and administrative expenses 531,839 (9,398) 522,441 Operating Income 165,296 12,723 178,019 Interest income (3,280) --- (3,280) Interest expense 5,888 --- 5,888 Earnings before income taxes 162,688 12,723 175,411 Provision for income taxes 58,785 3,566 62,351 Net earnings $103,903 $9,157 $113,060 Net earnings per diluted share $1.88 $0.17 $2.04 Weighted average diluted common shares outstanding 55,365 55,365 (1) The adjustments are as follows: a. $6.265 million, net of tax, or $0.11 diluted earnings per share in net operating losses from the Eddie Rodriguez stores b. $1.894 million, net of tax, or $0.03 diluted earnings per share related to stock based compensation c. ($2.914) million or ($0.05) diluted earnings per share in discrete tax items and d. $3.912 million or $0.07 diluted earnings per share in foreign earnings repatriation tax expense.