Quarterly report pursuant to sections 13 or 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
3 Months Ended
May 03, 2014
Segment Reporting  
Segment Reporting

12.  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, Moores Clothing for Men (“Moores”) and K&G.  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 our revenues or expenses.  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.

 

On August 6, 2013, we acquired JA Holding, the parent company of the American clothing brand Joseph Abboud® and a U.S. tailored clothing factory.  Based on the manner in which we manage, evaluate and internally report our operations, we determined that JA Holding is a component of our Men’s Wearhouse brand and therefore has been included in our retail reportable segment.

 

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 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.

 

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 Quarter Ended

 

 

 

May 3, 2014

 

May 4, 2013

 

Net sales:

 

 

 

 

 

MW (1) 

 

$

420,979

 

$

401,835

 

Moores

 

52,502

 

53,771

 

K&G

 

92,421

 

97,340

 

MW Cleaners

 

7,747

 

7,235

 

Total retail segment

 

573,649

 

560,181

 

 

 

 

 

 

 

Twin Hill

 

8,244

 

7,959

 

Dimensions and Alexandra (UK)

 

48,581

 

48,396

 

Total corporate apparel segment

 

56,825

 

56,355

 

 

 

 

 

 

 

Total net sales

 

$

630,474

 

$

616,536

 

 

(1)  MW includes Men’s Wearhouse, 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 Quarter Ended

 

 

 

May 3, 2014

 

May 4, 2013

 

Net sales:

 

 

 

 

 

Men’s tailored clothing product

 

$

239,436

 

$

234,844

 

Men’s non-tailored clothing product

 

171,106

 

166,773

 

Ladies’ clothing product

 

20,851

 

22,120

 

Other

 

1,631

 

 

Total retail clothing product

 

433,024

 

423,737

 

 

 

 

 

 

 

Tuxedo rental services

 

101,663

 

98,482

 

 

 

 

 

 

 

Alteration services

 

31,215

 

30,727

 

Retail dry cleaning services

 

7,747

 

7,235

 

Total alteration and other services

 

38,962

 

37,962

 

 

 

 

 

 

 

Corporate apparel clothing product

 

56,825

 

56,355

 

Total net sales

 

$

630,474

 

$

616,536

 

 

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

 

 

 

For the Quarter Ended

 

 

 

May 3, 2014

 

May 4, 2013

 

Retail

 

$

26,525

 

$

51,470

 

Corporate apparel

 

756

 

1,083

 

Operating income

 

27,281

 

52,553

 

Interest income

 

61

 

121

 

Interest expense

 

(1,135

)

(344

)

Earnings before income taxes

 

$

26,207

 

$

52,330