Segment Reporting

9 Months Ended

Oct. 29, 2011

Segment Reporting [Abstract]

Segment Reporting

13. 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 includes suits, suit separates, sport coats, pants, shoes, shirts, sportswear, outerwear and accessories for men. Ladies’ career apparel, sportswear and accessories, including shoes, are 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 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
	October 29,		October 30,		October 29,		October 30,
Net sales:	2011		2010		2011		2010
MW (1)	$	368,523	$	349,092	$	1,130,219	$	1,034,786
K&G		80,159		78,024		279,436		263,862
Moores		68,985		61,489		202,492		180,435
MW Cleaners		6,125		5,964		18,390		17,631
Total retail segment		523,792		494,569		1,630,537		1,496,714
Twin Hill		6,865		4,891		18,847		13,201
Dimensions and Alexandra (UK)		53,945		50,643		171,131		50,643
Total corporate apparel segment		60,810		55,534		189,978		63,844
Total net sales	$	584,602	$	550,103	$	1,820,515	$	1,560,558

(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):

	For the Three Months Ended				For the Nine Months Ended
	October 29,		October 30,		October 29,		October 30,
Net sales:	2011		2010		2011		2010
Men’s tailored clothing product	$	208,955	$	194,765	$	662,691	$	586,049
Men’s non-tailored clothing product		151,052		138,151		467,742		429,058
Ladies clothing product		17,300		17,334		58,924		57,432
Total retail clothing product		377,307		350,250		1,189,357		1,072,539
Tuxedo rental services		112,005		111,297		333,413		325,913
Alteration services		28,355		27,058		89,377		80,631
Retail dry cleaning services		6,125		5,964		18,390		17,631
Total alteration and other services		34,480		33,022		107,767		98,262
Corporate apparel clothing product		60,810		55,534		189,978		63,844
Total net sales	$	584,602	$	550,103	$	1,820,515	$	1,560,558

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

	For the Three Months Ended						For the Nine Months Ended
	October 29,			October 30,			October 29,			October 30,
Operating income (loss):	2011			2010			2011			2010
Retail	$	60,414		$	35,148		$	193,471		$	130,508
Corporate apparel		(392	)		(737	)		(794	)		(5,640	)
Operating income		60,022			34,411			192,677			124,868
Interest income		112			83			270			163
Interest expense		(396	)		(357	)		(1,051	)		(937	)
Earnings before income taxes	$	59,738		$	34,137		$	191,896		$	124,094

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

	October 29,		October 30,		January 29,
Segment assets:	2011		2010		2011
Retail	$	1,198,926	$	1,172,732	$	1,081,169
Corporate apparel		245,884		232,649		239,149
Total assets	$	1,444,810	$	1,405,381	$	1,320,318