Segment Reporting

3 Months Ended

Apr. 28, 2012

Segment Reporting

Segment Reporting

12.  Segment Reporting

The Company’s 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, K&G and Moores Clothing for Men (“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, 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.

The corporate apparel segment includes the results from our corporate apparel and uniform operations conducted by Twin Hill in the United States and 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.

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 and assets are allocated to the retail segment.

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

	For the Quarter Ended
	April 28, 2012		April 30, 2011
Net sales:
MW (1)	$	371,468	$	354,671
K&G	103,092		106,749
Moores	55,478		53,180
MW Cleaners	6,654		6,111
Total retail segment	536,692		520,711
Twin Hill	7,065		5,715
Dimensions and Alexandra (UK)	42,817		53,958
Total corporate apparel segment	49,882		59,673
Total net sales	$	586,574	$	580,384

(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 Quarter Ended
	April 28, 2012		April 30, 2011
Net sales:
Men’s tailored clothing product	$	230,280	$	229,203
Men’s non-tailored clothing product	166,888		158,283
Ladies’ clothing product	23,301		22,775
Total retail clothing product	420,469		410,261
Tuxedo rental services	78,489		73,141
Alteration services	31,080		31,198
Retail dry cleaning services	6,654		6,111
Total alteration and other services	37,734		37,309
Corporate apparel clothing product	49,882		59,673
Total net sales	$	586,574	$	580,384

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

	For the Quarter Ended
	April 28, 2012			April 30, 2011
Operating income (loss):
Retail	$	43,367		$	44,897
Corporate apparel	(2,420		)	(1,260		)
Operating income	40,947			43,637
Interest income	128			44
Interest expense	(433		)	(312		)
Earnings before income taxes	$	40,642		$	43,369