Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

v3.10.0.1
Revenue Recognition (Tables)
6 Months Ended
Aug. 04, 2018
Revenue Recognition  
Schedule of cumulative effect of changes in adoption of ASU 606

The cumulative effect of the changes made to our February 3, 2018 balance sheet for the adoption of ASU 606 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

Adjusted

 

 

 

Balance at

 

Impact of

 

Balance at

 

 

 

February 3,

 

Adoption of

 

February 3,

 

 

    

2018

    

ASU 606

    

2018

 

Assets:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

79,783

 

$

(303)

 

$

79,480

 

Inventories

 

 

851,931

 

 

(17,837)

 

 

834,094

 

Other current assets

 

 

78,252

 

 

2,753

 

 

81,005

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

285,537

 

 

32,378

 

 

317,915

 

Deferred taxes, net and other liabilities

 

 

164,191

 

 

(11,941)

 

 

152,250

 

Equity:

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(479,166)

 

 

(35,824)

 

 

(514,990)

 

 

In accordance with ASC 606, the following tables reflect the impact on our fiscal 2018 condensed consolidated income statement and balance sheet as if we had continued to apply accounting standards in effect last year (“Legacy GAAP”) (amounts in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Earnings

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended August 4, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Total retail sales

 

$

767,914

 

$

762,538

 

$

(5,376)

 

Corporate apparel clothing product

 

 

55,516

 

 

57,394

 

 

1,878

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Total retail cost of sales

 

 

413,912

 

 

413,640

 

 

(272)

 

Total corporate apparel clothing product cost of sales

 

 

40,616

 

 

42,054

 

 

1,438

 

Selling, general and administrative expenses

 

 

242,255

 

 

241,847

 

 

(408)

 

Provision for income taxes

 

 

9,884

 

 

9,172

 

 

(712)

 

Net earnings

 

 

49,238

 

 

45,694

 

 

(3,544)

 

Diluted net earnings per common share

 

$

0.97

 

$

0.90

 

$

(0.07)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended August 4, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Total retail sales

 

$

1,522,757

 

$

1,520,626

 

$

(2,131)

 

Corporate apparel clothing product

 

 

118,637

 

 

123,896

 

 

5,259

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Total retail cost of sales

 

 

839,986

 

 

839,966

 

 

(20)

 

Total corporate apparel clothing product cost of sales

 

 

87,282

 

 

91,529

 

 

4,247

 

Selling, general and administrative expenses

 

 

493,349

 

 

492,604

 

 

(745)

 

Provision for income taxes

 

 

14,265

 

 

14,200

 

 

(65)

 

Net earnings

 

 

63,147

 

 

62,858

 

 

(289)

 

Diluted net earnings per common share

 

$

1.24

 

$

1.24

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

August 4, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Assets:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

65,099

 

$

67,978

 

$

2,879

 

Inventories

 

 

786,510

 

 

799,258

 

 

12,748

 

Other current assets

 

 

87,491

 

 

84,904

 

 

(2,587)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

313,319

 

 

262,711

 

 

(50,608)

 

Deferred taxes, net and other liabilities

 

 

146,484

 

 

134,517

 

 

(11,967)

 

Equity:

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

$

(470,377)

 

$

(434,842)

 

$

35,535

 

 

Schedule of disaggregation of revenue

Revenues

 

The following table depicts the disaggregation of revenue by major source (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 tailored clothing product

 

$

356,504

 

$

341,182

 

$

712,241

 

$

673,812

 

Men's non-tailored clothing product

 

 

229,105

 

 

234,093

 

 

464,711

 

 

462,792

 

Women's clothing product

 

 

17,447

 

 

18,100

 

 

37,029

 

 

37,927

 

Other (1)

 

 

2,732

 

 

1,619

 

 

5,451

 

 

4,048

 

Total retail clothing product

 

 

605,788

 

 

594,994

 

 

1,219,432

 

 

1,178,579

 

Rental services

 

 

125,095

 

 

151,978

 

 

225,322

 

 

246,798

 

Alteration services

 

 

37,031

 

 

37,227

 

 

75,452

 

 

75,613

 

Retail dry cleaning services (2)

 

 

 —

 

 

8,799

 

 

2,551

 

 

17,313

 

Total alteration and other services

 

 

37,031

 

 

46,026

 

 

78,003

 

 

92,926

 

Total retail sales

 

 

767,914

 

 

792,998

 

 

1,522,757

 

 

1,518,303

 

Corporate apparel clothing product

 

 

55,516

 

 

57,760

 

 

118,637

 

 

115,361

 

Total net sales

 

$

823,430

 

$

850,758

 

$

1,641,394

 

$

1,633,664

 


(1)

Other consists of franchise and licensing revenues and gift card breakage.  Franchise revenues are generally recognized at a point in time while licensing revenues consist primarily of minimum guaranteed royalty amounts recognized over an elapsed time period.

(2)

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

 

Schedule of opening and closing balance of contract liabilities

The following table summarizes the opening and closing balances of our contract liabilities (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

Increase

 

Balance at

 

 

    

February 3, 2018

    

(Decrease)

    

August 4, 2018

 

 

 

As Adjusted

 

 

 

 

 

 

 

Contract liabilities

 

$

141,552

 

$

21,858

 

$

163,410