Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.2.0.727
Segment Reporting
6 Months Ended
Aug. 01, 2015
Segment Reporting  
Segment Reporting

 

14.  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.  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 four retail merchandising concepts include suits, suit separates, sport coats, slacks, business casual, sportswear, outerwear, dress and casual shirts, shoes and accessories for men.  Ladies’ career apparel, sportswear and accessories, including shoes, as well as children’s apparel is also offered at most of our K&G stores.  Tuxedo and suit rentals are 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 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.  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.

 

 

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

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

Net sales:

 

August 1,
2015

 

August 2,
2014

 

August 1,
2015

 

August 2,
2014

 

MW (1)

 

$

470,010 

 

$

450,331 

 

$

926,386 

 

$

871,310 

 

Jos. A. Bank

 

221,706 

 

113,692 

 

437,768 

 

113,692 

 

Moores

 

69,899 

 

78,076 

 

117,419 

 

130,578 

 

K&G

 

88,719 

 

86,218 

 

184,715 

 

178,639 

 

MW Cleaners

 

8,579 

 

8,105 

 

16,896 

 

15,852 

 

Total retail segment

 

858,913 

 

736,422 

 

1,683,184 

 

1,310,071 

 

 

 

 

 

 

 

 

 

 

 

Dimensions and Alexandra (UK)

 

49,790 

 

55,524 

 

102,030 

 

104,105 

 

Twin Hill

 

11,371 

 

11,132 

 

19,949 

 

19,376 

 

 

 

 

 

 

 

 

 

 

 

Total corporate apparel segment

 

61,161 

 

66,656 

 

121,979 

 

123,481 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

920,074 

 

$

803,078 

 

$

1,805,163 

 

$

1,433,552 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 the Company (in thousands):

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

Net sales:

 

August 1,
2015

 

August 2,
2014

 

August 1,
2015

 

August 2,
2014

 

Men’s tailored clothing product

 

$

372,060 

 

$

288,239 

 

$

758,396 

 

$

527,675 

 

Men’s non-tailored clothing product

 

255,439 

 

221,407 

 

511,449 

 

392,513 

 

Ladies’ clothing product

 

18,967 

 

18,798 

 

40,599 

 

39,649 

 

Other

 

2,724 

 

2,284 

 

5,608 

 

3,915 

 

Total retail clothing product

 

649,190 

 

530,728 

 

1,316,052 

 

963,752 

 

 

 

 

 

 

 

 

 

 

 

Rental services

 

157,049 

 

161,096 

 

260,178 

 

262,759 

 

 

 

 

 

 

 

 

 

 

 

Alteration services

 

44,095 

 

36,493 

 

90,058 

 

67,708 

 

Retail dry cleaning services

 

8,579 

 

8,105 

 

16,896 

 

15,852 

 

Total alteration and other services

 

52,674 

 

44,598 

 

106,954 

 

83,560 

 

 

 

 

 

 

 

 

 

 

 

Corporate apparel clothing product

 

61,161 

 

66,656 

 

121,979 

 

123,481 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

920,074 

 

$

803,078 

 

$

1,805,163 

 

$

1,433,552 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Six Months Ended

 

Operating income:

 

August 1,
2015

 

August 2,

2014

 

August 1,
2015

 

August 2,
2014

 

Retail

 

$

95,677

 

$

39,744

 

$

149,710

 

$

66,269

 

Corporate apparel

 

2,446

 

2,960

 

3,702

 

3,716

 

Operating income

 

98,123

 

42,704

 

153,412

 

69,985

 

Interest income

 

62

 

119

 

90

 

180

 

Interest expense

 

(26,535

)

(13,193

)

(53,018

)

(14,328

)

Loss on extinguishment of debt

 

 

(2,158

)

(12,675

)

(2,158

)

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

$

71,650

 

$

27,472

 

$

87,809

 

$

53,679