Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.8.0.1
Segment Reporting
9 Months Ended
Oct. 28, 2017
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, denim, sportswear, outerwear, dress shirts, shoes and accessories for men. Women's career and casual apparel, sportswear and accessories, including shoes, and children's apparel is offered at most of our K&G stores.  Rental product is 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 Dimensions, Alexandra, and Yaffy in the UK and Twin Hill in the U.S., which provide corporate apparel uniforms and workwear to workforces. 

 

We measure segment profitability based on operating income, defined as income before interest expense, interest income, gain on extinguishment of debt, net and income taxes, before shared service expenses. Shared service expenses include costs incurred and directed primarily by our corporate offices that are not allocated to segments.

 

Additional net sales information is as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

    

October 28, 2017

    

October 29, 2016

    

October 28, 2017

    

October 29, 2016

 

Net sales:

 

 

    

 

 

    

 

 

    

 

 

    

 

MW(1)

 

$

448,955

 

$

461,806

 

$

1,327,773

 

$

1,386,347

 

Jos. A. Bank

 

 

162,685

 

 

165,992

 

 

504,238

 

 

530,482

 

K&G

 

 

69,604

 

 

70,874

 

 

244,098

 

 

252,007

 

Moores

 

 

57,607

 

 

56,520

 

 

163,732

 

 

166,203

 

MW Cleaners

 

 

8,671

 

 

8,497

 

 

25,984

 

 

25,073

 

Total retail segment

 

 

747,522

 

 

763,689

 

 

2,265,825

 

 

2,360,112

 

Total corporate apparel segment

 

 

63,296

 

 

83,245

 

 

178,657

 

 

225,328

 

Total net sales

 

$

810,818

 

$

846,934

 

$

2,444,482

 

$

2,585,440

 


(1)

MW includes Men's Wearhouse, Men's Wearhouse and Tux, tuxedo shops within Macy's and Joseph Abboud.

 

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

 

 

    

October 28, 2017

    

October 29, 2016

    

October 28, 2017

    

October 29, 2016

 

Net sales:

 

 

    

 

 

    

 

 

    

 

 

    

 

Men's tailored clothing product

 

$

330,618

 

$

326,741

 

$

1,004,430

 

$

1,025,495

 

Men's non-tailored clothing product

 

 

227,520

 

 

230,146

 

 

690,312

 

 

718,233

 

Women's clothing product

 

 

14,795

 

 

15,626

 

 

52,722

 

 

55,940

 

Other

 

 

2,270

 

 

2,533

 

 

6,318

 

 

6,992

 

Total retail clothing product

 

 

575,203

 

 

575,046

 

 

1,753,782

 

 

1,806,660

 

Rental services

 

 

126,410

 

 

138,724

 

 

373,208

 

 

403,564

 

Alteration services

 

 

37,238

 

 

41,422

 

 

112,851

 

 

124,815

 

Retail dry cleaning services

 

 

8,671

 

 

8,497

 

 

25,984

 

 

25,073

 

Total alteration and other services

 

 

45,909

 

 

49,919

 

 

138,835

 

 

149,888

 

Corporate apparel clothing product

 

 

63,296

 

 

83,245

 

 

178,657

 

 

225,328

 

Total net sales

 

$

810,818

 

$

846,934

 

$

2,444,482

 

$

2,585,440

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

    

October 28, 2017

    

October 29, 2016

    

October 28, 2017

    

October 29, 2016

 

Operating income:

 

 

    

 

 

    

 

 

    

 

 

    

 

Retail

 

$

123,628

 

$

97,629

 

$

352,273

 

$

278,732

 

Corporate apparel

 

 

3,072

 

 

10,314

 

 

7,150

 

 

24,288

 

Shared service expense

 

 

(50,073)

 

 

(46,887)

 

 

(143,329)

 

 

(151,338)

 

Operating income

 

 

76,627

 

 

61,056

 

 

216,094

 

 

151,682

 

Interest income

 

 

159

 

 

52

 

 

324

 

 

102

 

Interest expense

 

 

(24,412)

 

 

(25,476)

 

 

(75,200)

 

 

(77,853)

 

Gain on extinguishment of debt, net

 

 

2,539

 

 

1,808

 

 

6,535

 

 

1,737

 

Earnings before income taxes

 

$

54,913

 

$

37,440

 

$

147,753

 

$

75,668