Letter to our Stakeholders

Big and Tall and Boy’s categories also did well. Though the development of the K&G brand is a multi-year process, we believe that K&G will benefit from today’s more price conscious consumers.

Maintaining Our Leading Market Position At Moores

Though Moores also faced a challenging economic environment in 2009, we took steps similar to those we took at Men’s Wearhouse in order to preserve our leading market share position in Canada. As a result of our promotional pricing and expanded branded offerings, we increased suit unit sales by 18 percent.

Developing Promising Businesses

Though Twin Hill continues to enjoy excellent relationships with high profile customers, many of the companies that we supply with uniforms had a difficult year, which negatively impacted our performance. We have now focused our attention on the hospitality industry, and we recently launched a comprehensive new catalog targeting this sector.

Focusing On Financial Stability

In 2009, we took dramatic steps to bring our operating costs in line with the conditions impacting our business and the economy as a whole. In streamlining our organization, cutting our freight expenditures, reducing our store occupancy expense and implementing distribution center efficiencies, we succeeded in lowering costs by over $50 million. Though we are pleased with this outcome, we know that 2010 may be another challenging year, and we are prepared to respond as necessary should conditions warrant.