Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.10.0.1
Segment Reporting
6 Months Ended
Aug. 04, 2018
Segment Reporting  
Segment Reporting

16.  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.  Prior to its divestiture, MW Cleaners was also aggregated in the retail segment as its operations did not have 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, formalwear, 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, (loss) 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

 

For the Six Months Ended

 

 

    

August 4, 2018

    

July 29, 2017

    

August 4, 2018

    

July 29, 2017

 

Net sales:

 

 

    

 

 

    

 

 

    

 

 

    

 

Men's Wearhouse(1)

 

$

445,197

 

$

458,751

 

$

893,006

 

$

878,818

 

Jos. A. Bank

 

 

172,427

 

 

174,325

 

 

341,503

 

 

341,553

 

K&G

 

 

83,645

 

 

85,811

 

 

172,925

 

 

174,494

 

Moores

 

 

66,645

 

 

65,312

 

 

112,772

 

 

106,125

 

MW Cleaners(2)

 

 

 —

 

 

8,799

 

 

2,551

 

 

17,313

 

Total retail segment

 

 

767,914

 

 

792,998

 

 

1,522,757

 

 

1,518,303

 

Total corporate apparel segment

 

 

55,516

 

 

57,760

 

 

118,637

 

 

115,361

 

Total net sales

 

$

823,430

 

$

850,758

 

$

1,641,394

 

$

1,633,664

 


(1)

Consists of Men's Wearhouse, Men's Wearhouse and Tux, tuxedo shops within Macy's and Joseph Abboud.

(2)

On March 3, 2018, we completed the divestiture of our MW Cleaners business.  Please see Note 2 for additional information.

 

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

 

For the Six Months Ended

 

 

    

August 4, 2018

    

July 29, 2017

    

August 4, 2018

    

July 29, 2017

 

Operating income:

 

 

    

 

 

    

 

 

    

 

 

    

 

Retail

 

$

134,142

 

$

155,221

 

$

232,863

 

$

228,646

 

Corporate apparel

 

 

1,169

 

 

2,103

 

 

2,752

 

 

4,078

 

Shared service expense

 

 

(47,325)

 

 

(48,859)

 

 

(94,732)

 

 

(93,257)

 

Operating income

 

 

87,986

 

 

108,465

 

 

140,883

 

 

139,467

 

Interest income

 

 

122

 

 

98

 

 

207

 

 

165

 

Interest expense

 

 

(20,864)

 

 

(25,167)

 

 

(42,845)

 

 

(50,788)

 

(Loss) gain on extinguishment of debt, net

 

 

(8,122)

 

 

3,281

 

 

(20,833)

 

 

3,996

 

Earnings before income taxes

 

$

59,122

 

$

86,677

 

$

77,412

 

$

92,840