Segment Reporting

6 Months Ended

Aug. 03, 2013

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.

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

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 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 Six Months Ended
Net sales:	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
MW (1)	$	426,597	$	429,513	$	828,432	$	800,981
Moores	74,544		78,361		128,315		133,839
K&G	84,860		89,995		182,200		193,087
MW Cleaners	7,439		6,819		14,674		13,473
Total retail segment	593,440		604,688		1,153,621		1,141,380
Twin Hill	9,977		6,218		17,936		13,283
Dimensions and Alexandra (UK)	43,838		51,396		92,234		94,213
Total corporate apparel segment	53,815		57,614		110,170		107,496
Total net sales	$	647,255	$	662,302	$	1,263,791	$	1,248,876

(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 us (in thousands):

	For the Three Months Ended				For the Six Months Ended
Net sales:	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
Men’s tailored clothing product	$	226,479	$	227,664	$	461,323	$	457,944
Men’s non-tailored clothing product	164,305		165,836		331,078		332,724
Ladies’ clothing product	17,899		19,524		40,019		42,825
Total retail clothing product	408,683		413,024		832,420		833,493
Tuxedo rental services	147,701		154,124		246,183		232,613
Alteration services	29,617		30,721		60,344		61,801
Retail dry cleaning services	7,439		6,819		14,674		13,473
Total alteration and other services	37,056		37,540		75,018		75,274
Corporate apparel clothing product	53,815		57,614		110,170		107,496
Total net sales	$	647,255	$	662,302	$	1,263,791	$	1,248,876

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 Six Months Ended
Operating income (loss):	August 3, 2013			July 28, 2012			August 3, 2013			July 28, 2012
Retail	$	65,088		$	89,399		$	116,558		$	132,766
Corporate apparel	1,700			2,191			2,783			(229		)
Operating income	66,788			91,590			119,341			132,537
Interest income	181			143			302			271
Interest expense	(540		)	(508		)	(884		)	(941		)
Earnings before income taxes	$	66,429		$	91,225		$	118,759		$	131,867