Annual report pursuant to section 13 and 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
12 Months Ended
Jan. 28, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING
14.

SEGMENT REPORTING

On August 6, 2010, we acquired Dimensions and certain assets of Alexandra, two leading providers of corporate clothing uniforms and workwear in the UK (refer to Note 2). As a result of these acquisitions, in the third quarter of fiscal 2010, the Company revised its segment reporting to reflect two reportable segments, retail and corporate apparel, based on the way we manage, evaluate and internally report our business activities. Prior to these acquisitions our corporate apparel business did not have a significant effect on the revenues or expenses of the Company and we reported our business as one operating segment.

 

The retail segment includes the results from our four retail merchandising brands: Men’s Wearhouse, Men’s Wearhouse and Tux, K&G and Moores. These four 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 the revenues or expenses of the Company. Specialty apparel merchandise offered by our four 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 and tuxedo rentals are offered at our Men’s Wearhouse, Men’s Wearhouse and Tux and Moores retail stores.

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Twin Hill in the United States and, beginning in the third quarter of fiscal 2010, Dimensions and Alexandra in the 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.

The accounting policies for each of our operating segments are the same as those described in Note 1.

Operating income is the primary measure of profit we use to make decisions on allocating resources to our operating segments and to assess the operating performance of each operating segment. It is defined as income before interest expense, interest income, income taxes and noncontrolling interest. Corporate expenses and assets are allocated to the retail segment.

Net sales by brand and reportable segment are as follows (in thousands):

 

                         
    Fiscal Year  
    2011     2010     2009  

Net sales:

                       

MW(1)

  $ 1,471,711     $ 1,345,915     $ 1,281,847  

K&G

    375,105       360,301       370,148  

Moores

    267,689       246,735       222,049  

MW Cleaners

    24,688       23,415       22,058  
   

 

 

   

 

 

   

 

 

 

Total retail segment

    2,139,193       1,976,366       1,896,102  
   

 

 

   

 

 

   

 

 

 

Twin Hill

    25,398       21,464       13,473  

Dimensions and Alexandra (UK)

    218,093       104,834        
   

 

 

   

 

 

   

 

 

 

Total corporate apparel segment

    243,491       126,298       13,473  
   

 

 

   

 

 

   

 

 

 

Total net sales

  $ 2,382,684     $ 2,102,664     $ 1,909,575  
   

 

 

   

 

 

   

 

 

 
                         

 

(1)

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

 

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

 

                         
    Fiscal Year  
    2011     2010     2009  

Net sales:

                       

Men’s tailored clothing product

  $ 884,133     $ 790,558     $ 761,752  

Men’s non-tailored clothing product

    656,689       612,544       597,667  

Ladies clothing product

    78,849       77,390       74,494  
   

 

 

   

 

 

   

 

 

 

Total retail clothing product

    1,619,671       1,480,492       1,433,913  
   

 

 

   

 

 

   

 

 

 

Tuxedo rental services

    376,857       364,269       334,068  

Alteration services

    117,977       108,190       106,063  

Retail dry cleaning services

    24,688       23,415       22,058  
   

 

 

   

 

 

   

 

 

 

Total alteration and other services

    142,665       131,605       128,121  
   

 

 

   

 

 

   

 

 

 

Corporate apparel clothing product

    243,491       126,298       13,473  
   

 

 

   

 

 

   

 

 

 

Total net sales

  $ 2,382,684     $ 2,102,664     $ 1,909,575  
   

 

 

   

 

 

   

 

 

 

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

 

                         
    Fiscal Year  
    2011     2010     2009  

Operating income (loss):

                       

Retail

  $ 189,995     $ 108,392     $ 73,670  

Corporate apparel

    (4,563     (6,721     (4,294
   

 

 

   

 

 

   

 

 

 

Operating income

    185,432       101,671       69,376  

Interest income

    424       315       912  

Interest expense

    (1,446     (1,456     (1,244
   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

  $ 184,410     $ 100,530     $ 69,044  
   

 

 

   

 

 

   

 

 

 

Capital expenditures by reportable segment are as follows (in thousands):

 

                         
    Fiscal Year  
    2011     2010     2009  

Capital expenditures:

                       

Retail

  $ 82,001     $ 55,967     $ 55,612  

Corporate apparel

    9,819       2,901       1,300  
   

 

 

   

 

 

   

 

 

 

Total capital expenditures

  $ 91,820     $ 58,868     $ 56,912  
   

 

 

   

 

 

   

 

 

 

 

Depreciation and amortization expense by reportable segment is as follows (in thousands):

 

                         
    Fiscal Year  
    2011     2010     2009  

Depreciation and amortization expense:

                       

Retail

  $ 69,644     $ 72,472     $ 84,681  

Corporate apparel

    6,324       3,526       1,409  
   

 

 

   

 

 

   

 

 

 

Total depreciation and amortization expense

  $ 75,968     $ 75,998     $ 86,090  
   

 

 

   

 

 

   

 

 

 

Total assets by reportable segment are as follows (in thousands):

 

                 
    January 28,
2012
    January 29,
2011
 

Segment assets:

               

Retail

  $ 1,172,742     $ 1,081,169  

Corporate apparel

    233,210       239,149  
   

 

 

   

 

 

 

Total assets

  $ 1,405,952     $ 1,320,318  
   

 

 

   

 

 

 

The tables below present information related to geographic areas in which the Company operated, with net sales classified based primarily on the country where the Company’s customer is located (in thousands):

 

                         
    Fiscal Year  
    2011     2010     2009  

Net sales:

                       

U.S.

  $ 1,896,902     $ 1,751,095     $ 1,687,526  

Canada

    267,689       246,735       222,049  

UK

    218,093       104,834        
   

 

 

   

 

 

   

 

 

 

Total net sales

  $ 2,382,684     $ 2,102,664     $ 1,909,575  
   

 

 

   

 

 

   

 

 

 

 

                 
    January 28,
2012
    January 29,
2011
 

Long-lived assets:

               

U.S.

  $ 394,274     $ 366,974  

Canada

    48,023       49,194  

UK

    13,234       5,908  
   

 

 

   

 

 

 

Total long-lived assets

  $ 455,531     $ 422,076