Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.3.1.900
Segment Reporting
9 Months Ended
Oct. 31, 2015
Segment Reporting  
Segment Reporting

 

 

15.  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 and tuxedo shops within Macy’s 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 Nine Months Ended

 

Net sales:

 

October 31,
2015

 

November 1,
2014

 

October 31,
2015

 

November 1,
2014

 

MW(1)

 

$

465,396 

 

$

436,107 

 

$

1,391,782 

 

$

1,307,417 

 

Jos. A. Bank

 

198,936 

 

233,313 

 

636,704 

 

347,005 

 

K&G

 

72,733 

 

72,835 

 

257,448 

 

251,474 

 

Moores

 

55,862 

 

68,724 

 

173,281 

 

199,302 

 

MW Cleaners

 

8,460 

 

8,183 

 

25,356 

 

24,035 

 

 

 

 

 

 

 

 

 

 

 

Total retail segment

 

801,387 

 

819,162 

 

2,484,571 

 

2,129,233 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dimensions and Alexandra (UK)

 

53,444 

 

59,704 

 

155,474 

 

163,809 

 

Twin Hill

 

10,615 

 

11,771 

 

30,564 

 

31,147 

 

 

 

 

 

 

 

 

 

 

 

Total corporate apparel segment

 

64,059 

 

71,475 

 

186,038 

 

194,956 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

865,446 

 

$

890,637 

 

$

2,670,609 

 

$

2,324,189 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

MW includes Men’s Wearhouse stores, Men’s Wearhouse and Tux stores, Joseph Abboud store, tuxedo shops within Macy’s 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 Nine Months Ended

 

Net sales:

 

October 31,
2015

 

November 1,
2014

 

October 31,
2015

 

November 1,
2014

 

Men’s tailored clothing product

 

$

351,269 

 

$

351,071 

 

$

1,109,665 

 

$

878,746 

 

Men’s non-tailored clothing product

 

245,250 

 

263,053 

 

756,699 

 

655,566 

 

Ladies’ clothing product

 

16,228 

 

16,575 

 

56,827 

 

56,224 

 

Other

 

3,127 

 

3,748 

 

8,735 

 

7,663 

 

 

 

 

 

 

 

 

 

 

 

Total retail clothing product

 

615,874 

 

634,447 

 

1,931,926 

 

1,598,199 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental services

 

132,443 

 

132,690 

 

392,621 

 

395,449 

 

 

 

 

 

 

 

 

 

 

 

Alteration services

 

44,610 

 

43,842 

 

134,668 

 

111,550 

 

Retail dry cleaning services

 

8,460 

 

8,183 

 

25,356 

 

24,035 

 

 

 

 

 

 

 

 

 

 

 

Total alteration and other services

 

53,070 

 

52,025 

 

160,024 

 

135,585 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate apparel clothing product

 

64,059 

 

71,475 

 

186,038 

 

194,956 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total net sales

 

$

865,446 

 

$

890,637 

 

$

2,670,609 

 

$

2,324,189 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

Operating (loss) income:

 

October 31,
2015

 

November 1,
2014

 

October 31,
2015

 

November 1,
2014

 

Retail

 

$

(38,971

)

$

39,848

 

$

110,739

 

$

106,117

 

Corporate apparel

 

2,570

 

5,327

 

6,272

 

9,043

 

 

 

 

 

 

 

 

 

 

 

Operating (loss) income.

 

(36,401

)

45,175

 

117,011

 

115,160

 

Interest income

 

50

 

125

 

140

 

305

 

Interest expense

 

(26,457

)

(25,131

)

(79,475

)

(39,459

)

Loss on extinguishment of debt

 

 

 

(12,675

)

(2,158

)

 

 

 

 

 

 

 

 

 

 

(Loss) earnings before income taxes

 

$

(62,808

)

$

20,169

 

$

25,001

 

$

73,848