Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
9 Months Ended
Nov. 01, 2014
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 five retail merchandising brands: Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank, Moores Clothing for Men (“Moores”) and K&G.  These five brands are operating segments that have been aggregated into the retail reportable segment based on their similar economic characteristics, products, production processes, target customers and distribution methods.  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 five retail merchandising concepts include suits, suit separates, sport coats, slacks, sportswear, outerwear, dress shirts, shoes and accessories for men.  Ladies’ career apparel, sportswear and accessories, including shoes, and children’s apparel is offered at most of our K&G stores.  Tuxedo rentals are offered at our Men’s Wearhouse, Men’s Wearhouse and Tux, Jos. A. Bank and Moores retail stores and ladies’ career apparel, sportswear and accessories, including shoes, and children’s apparel is offered at most of our K&G stores.

 

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Twin Hill in the U.S. and Dimensions, Alexandra and Yaffy in the United Kingdom (“UK”).  The two corporate apparel and uniform concepts are operating segments that have been aggregated into the reportable corporate apparel segment based on their similar economic characteristics, products, production processes, target customers and distribution methods.  The corporate apparel segment provides corporate clothing uniforms and workwear to workforces.

 

We measure segment profitability based on operating income, defined as income before interest expense, interest income, income taxes and non-controlling interest.  Corporate expenses and assets are allocated to the retail segment.

 

From June 18, 2014 through November 1, 2014, Jos. A. Bank generated net sales of $347.0 million.  Net sales by brand and reportable segment are as follows (in thousands):

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

November 1,
2014

 

November 2,
2013

 

November 1,
2014

 

November 2,
2013

 

Net sales:

 

 

 

 

 

 

 

 

 

MW (1)

 

$

436,107 

 

$

427,625 

 

$

1,307,417 

 

$

1,256,057 

 

Jos. A. Bank

 

233,313 

 

 

347,005 

 

 

Moores

 

68,724 

 

67,467 

 

199,302 

 

195,782 

 

K&G

 

72,835 

 

72,785 

 

251,474 

 

254,985 

 

MW Cleaners

 

8,183 

 

7,648 

 

24,035 

 

22,322 

 

Total retail segment

 

819,162 

 

575,525 

 

2,129,233 

 

1,729,146 

 

 

 

 

 

 

 

 

 

 

 

Twin Hill

 

11,771 

 

11,263 

 

31,147 

 

29,199 

 

Dimensions and Alexandra (UK)

 

59,704 

 

62,102 

 

163,809 

 

154,336 

 

Total corporate apparel segment

 

71,475 

 

73,365 

 

194,956 

 

183,535 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

890,637 

 

$

648,890 

 

$

2,324,189 

 

$

1,912,681 

 

 

(1)

MW includes Men’s Wearhouse and Men’s Wearhouse and Tux stores and JA Holding.

 

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

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

November 1,
2014

 

November 2,
2013

 

November 1,
2014

 

November 2,
2013

 

Net sales:

 

 

 

 

 

 

 

 

 

Men’s tailored clothing product

 

$

351,071 

 

$

229,895 

 

$

878,746 

 

$

691,218 

 

Men’s non-tailored clothing product

 

263,053 

 

168,271 

 

655,566 

 

499,349 

 

Ladies’ clothing product

 

16,575 

 

16,096 

 

56,224 

 

56,115 

 

Other

 

3,748 

 

1,723 

 

7,663 

 

1,723 

 

Total retail clothing product

 

634,447 

 

415,985 

 

1,598,199 

 

1,248,405 

 

 

 

 

 

 

 

 

 

 

 

Tuxedo rental services

 

132,690 

 

122,177 

 

395,449 

 

368,360 

 

 

 

 

 

 

 

 

 

 

 

Alteration services

 

43,842 

 

29,715 

 

111,550 

 

90,059 

 

Retail dry cleaning services

 

8,183 

 

7,648 

 

24,035 

 

22,322 

 

Total alteration and other services

 

52,025 

 

37,363 

 

135,585 

 

112,381 

 

 

 

 

 

 

 

 

 

 

 

Corporate apparel clothing product

 

71,475 

 

73,365 

 

194,956 

 

183,535 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

890,637 

 

$

648,890 

 

$

2,324,189 

 

$

1,912,681 

 

 

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

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

 

November 1,
2014

 

November 2,

2013

 

November 1,
2014

 

November 2,
2013

 

Operating income:

 

 

 

 

 

 

 

 

 

Retail

 

$

39,848

 

$

55,882

 

$

106,117

 

$

172,440

 

Corporate apparel

 

5,327

 

4,123

 

9,043

 

6,906

 

Operating income

 

45,175

 

60,005

 

115,160

 

179,346

 

Interest income

 

125

 

30

 

305

 

332

 

Interest expense

 

(25,131

)

(1,220

)

(39,459

)

(2,104

)

Loss on extinguishment of debt

 

 

 

(2,158

)

 

Earnings before income taxes

 

$

20,169

 

$

58,815

 

$

73,848

 

$

177,574

 

 

As a result of the Jos. A. Bank acquisition, total assets for our retail reportable segment have materially changed since February 1, 2014. Total assets by reportable segment are as follows (in thousands):

 

 

 

November 1,
2014

 

November 2,
2013

 

February 1,
2014

 

Segment assets:

 

 

 

 

 

 

 

Retail

 

$

3,402,411 

 

$

1,357,175 

 

$

1,306,677 

 

Corporate apparel

 

251,016 

 

249,276 

 

248,553 

 

Total assets

 

$

3,653,427 

 

$

1,606,451 

 

$

1,555,230