Quarterly report pursuant to Section 13 or 15(d)

Revenue Recognition (Tables)

v3.10.0.1
Revenue Recognition (Tables)
9 Months Ended
Nov. 03, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
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 Nine Months Ended

 

 

    

November 3, 2018

    

October 28, 2017

    

November 3, 2018

    

October 28, 2017

 

Net sales:

 

 

    

 

 

    

 

 

    

 

 

    

 

Men's tailored clothing product

 

$

342,972

 

$

330,618

 

$

1,055,213

 

$

1,004,430

 

Men's non-tailored clothing product

 

 

227,069

 

 

227,520

 

 

691,780

 

 

690,312

 

Women's clothing product

 

 

15,109

 

 

14,795

 

 

52,138

 

 

52,722

 

Other (1)

 

 

3,297

 

 

2,270

 

 

8,748

 

 

6,318

 

Total retail clothing product

 

 

588,447

 

 

575,203

 

 

1,807,879

 

 

1,753,782

 

Rental services

 

 

124,697

 

 

126,410

 

 

350,019

 

 

373,208

 

Alteration services

 

 

38,597

 

 

37,238

 

 

114,049

 

 

112,851

 

Retail dry cleaning services (2)

 

 

 —

 

 

8,671

 

 

2,551

 

 

25,984

 

Total alteration and other services

 

 

38,597

 

 

45,909

 

 

116,600

 

 

138,835

 

Total retail sales

 

 

751,741

 

 

747,522

 

 

2,274,498

 

 

2,265,825

 

Corporate apparel clothing product

 

 

61,006

 

 

63,296

 

 

179,643

 

 

178,657

 

Total net sales

 

$

812,747

 

$

810,818

 

$

2,454,141

 

$

2,444,482

 


(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)

    

November 3, 2018

 

 

 

As Adjusted

 

 

 

 

 

 

 

Contract liabilities

 

$

141,552

 

$

556

 

$

142,108

 

 

ASU 2014-09  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of cumulative effect of changes in adoption of ASU 606

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

Adjusted

 

 

 

Balance at

 

Impact of

 

Balance at

 

 

 

February 3,

 

Adoption of

 

February 3,

 

 

    

2018

    

ASC 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)

 

 

Impact of Adoption of ASU 606 | ASU 2014-09  
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]  
Schedule of cumulative effect of changes in adoption of ASU 606

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

 

 

 

 

 

 

 

 

 

 

 

 

Statement of Earnings

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended November 3, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Total retail sales

 

$

751,741

 

$

753,195

 

$

1,454

 

Corporate apparel clothing product

 

 

61,006

 

 

62,353

 

 

1,347

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Total retail cost of sales

 

 

405,620

 

 

406,430

 

 

810

 

Total corporate apparel clothing product cost of sales

 

 

44,392

 

 

45,516

 

 

1,124

 

Selling, general and administrative expenses

 

 

246,305

 

 

245,918

 

 

(387)

 

Provision for income taxes

 

 

13,256

 

 

13,869

 

 

613

 

Net earnings

 

 

13,875

 

 

14,516

 

 

641

 

Diluted net earnings per common share

 

$

0.27

 

$

0.29

 

$

0.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended November 3, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Net sales:

 

 

 

 

 

 

 

 

 

 

Total retail sales

 

$

2,274,498

 

$

2,273,821

 

$

(677)

 

Corporate apparel clothing product

 

 

179,643

 

 

186,249

 

 

6,606

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

Total retail cost of sales

 

 

1,245,606

 

 

1,246,396

 

 

790

 

Total corporate apparel clothing product cost of sales

 

 

131,674

 

 

137,045

 

 

5,371

 

Selling, general and administrative expenses

 

 

739,654

 

 

738,522

 

 

(1,132)

 

Provision for income taxes

 

 

27,521

 

 

27,758

 

 

237

 

Net earnings

 

 

77,022

 

 

77,685

 

 

663

 

Diluted net earnings per common share

 

$

1.52

 

$

1.53

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

November 3, 2018

 

 

 

As

 

Amounts Under

 

Effect of Change

 

 

    

Reported

    

Legacy GAAP

    

Increase/(Decrease)

 

Assets:

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

$

80,696

 

$

82,850

 

$

2,154

 

Inventories

 

 

875,003

 

 

886,627

 

 

11,624

 

Other current assets

 

 

70,433

 

 

67,774

 

 

(2,659)

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

 

 

302,322

 

 

245,074

 

 

(57,248)

 

Deferred taxes, net and other liabilities

 

 

148,590

 

 

136,623

 

 

(11,967)

 

Equity:

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

$

(464,993)

 

$

(428,506)

 

$

36,487