Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
3 Months Ended
Apr. 29, 2017
Segment Reporting  
Segment Reporting

15.  Segment Reporting

 

Our operations are conducted in two reportable segments, retail and corporate apparel, based on the way we manage, evaluate and internally report our business activities.

 

The retail segment includes the results from our four retail merchandising brands: Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank, Moores Clothing for Men (“Moores”) and K&G.  These four brands are operating segments that have been aggregated into the retail reportable segment.  MW Cleaners is also aggregated in the retail segment as these operations have not had a significant effect on our revenues or expenses.  Specialty apparel merchandise offered by our four retail merchandising concepts include suits, suit separates, sport coats, slacks, business casual, denim, sportswear, outerwear, dress shirts, shoes and accessories for men. Women’s career and casual apparel, sportswear and accessories, including shoes, and children’s apparel is offered at most of our K&G stores.  Rental product is offered at our Men’s Wearhouse/Men’s Wearhouse and Tux, Jos. A. Bank and Moores retail stores.

 

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Dimensions, Alexandra, and Yaffy in the UK and Twin Hill in the U.S., which provide corporate apparel uniforms and workwear to workforces. 

 

We measure segment profitability based on operating income, defined as income before interest expense, interest income, gain on extinguishment of debt, net and income taxes, before shared service expenses. Shared service expenses include costs incurred and directed primarily by our corporate offices that are not allocated to segments.

 

Additional net sales information is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

    

April 29, 2017

    

April 30, 2016

 

Net sales:

 

 

    

 

 

    

 

MW(1)

 

$

420,067

 

$

441,646

 

Jos. A. Bank

 

 

167,228

 

 

178,450

 

K&G

 

 

88,683

 

 

94,759

 

Moores

 

 

40,813

 

 

43,229

 

MW Cleaners

 

 

8,514

 

 

8,158

 

Total retail segment

 

 

725,305

 

 

766,242

 

Total corporate apparel segment

 

 

57,601

 

 

62,580

 

Total net sales

 

$

782,906

 

$

828,822

 


(1)

MW includes Men’s Wearhouse, Men’s Wearhouse and Tux, tuxedo shops within Macy’s and Joseph Abboud.

 

The following table sets forth supplemental products and services sales information for the Company (in thousands):

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

    

April 29, 2017

    

April 30, 2016

 

Net sales:

 

 

    

 

 

    

 

Men's tailored clothing product

 

$

332,630

 

$

349,528

 

Men's non-tailored clothing product

 

 

228,699

 

 

241,933

 

Women's clothing product

 

 

19,827

 

 

21,846

 

Other

 

 

2,429

 

 

2,361

 

Total retail clothing product

 

 

583,585

 

 

615,668

 

Rental services

 

 

94,820

 

 

99,831

 

Alteration services

 

 

38,386

 

 

42,585

 

Retail dry cleaning services

 

 

8,514

 

 

8,158

 

Total alteration and other services

 

 

46,900

 

 

50,743

 

Corporate apparel clothing product

 

 

57,601

 

 

62,580

 

Total net sales

 

$

782,906

 

$

828,822

 

 

Operating income by reportable segment, shared service expense, and the reconciliation to earnings before income taxes is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

    

April 29, 2017

    

April 30, 2016

 

Operating income:

 

 

    

 

 

    

 

Retail

 

$

73,425

 

$

79,877

 

Corporate apparel

 

 

1,975

 

 

2,054

 

Shared service expense

 

 

(44,398)

 

 

(50,936)

 

Operating income

 

 

31,002

 

 

30,995

 

Interest income

 

 

67

 

 

13

 

Interest expense

 

 

(25,621)

 

 

(26,502)

 

Gain on extinguishment of debt, net

 

 

715

 

 

 —

 

Earnings before income taxes

 

$

6,163

 

$

4,506