Segment Reporting

6 Months Ended

Aug. 03, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We have two reportable segments: Stores and Direct Marketing. The Stores segment includes all Company-owned stores excluding Factory stores (“Full-line Stores”). The Direct Marketing segment includes our catalog call center and Internet operations. While each segment offers a similar mix of men’s clothing to the retail customer, the Stores segment also provides complete alterations, while the Direct Marketing segment provides certain limited alterations.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance of the segments based on “four wall” contribution, which excludes any allocation of overhead from the corporate office and the distribution centers (except order fulfillment costs, which are allocated to Direct Marketing), interest and income taxes.

Our segments are strategic business units that offer similar products to retail customers by two distinctively different methods. Stores segment customers travel to Company stores to purchase merchandise and/or alterations and typically take their purchases with them from the Stores. Most of our Direct Marketing segment customers visit one or more of our Internet web sites and order online. Some of our Direct Marketing customers order through our catalog by phone, mail or fax. Direct Marketing purchases are shipped to the customer.

Segment data is presented in the following tables:

Three months ended August 3, 2013

	Stores		Direct Marketing		Corporate and Other			Total
	(In thousands)
Net sales (a)	$	194,499	$	27,310	$	10,720		$	232,529
Depreciation and amortization	5,802		206		1,165			7,173
Operating income (loss) (b)	34,713		5,843		(17,428		)	23,128
Capital expenditures (c)	4,499		7		1,630			6,136

Three months ended July 28, 2012

	Stores		Direct Marketing		Corporate and Other			Total
	(In thousands)
Net sales (a)	$	223,986	$	27,832	$	8,525		$	260,343
Depreciation and amortization	5,624		179		1,123			6,926
Operating income (loss) (b)	49,266		7,463		(19,613		)	37,116
Capital expenditures (c)	4,580		44		1,269			5,893

Six months ended August 3, 2013

	Stores		Direct Marketing		Corporate and Other			Total
	(In thousands)
Net sales (a)	$	360,409	$	48,197	$	19,978		$	428,584
Depreciation and amortization	11,896		410		2,360			14,666
Operating income (loss) (b)	61,175		11,463		(36,557		)	36,081
Capital expenditures (c)	9,605		14		2,412			12,031

Six months ended July 28, 2012

	Stores		Direct Marketing		Corporate and Other			Total
	(In thousands)
Net sales (a)	$	398,749	$	46,377	$	16,571		$	461,697
Depreciation and amortization	11,159		353		2,234			13,746
Operating income (loss) (b)	85,403		13,650		(37,529		)	61,524
Capital expenditures (c)	9,219		101		2,510			11,830

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(a) Stores net sales represent all Full-line Store sales. Direct Marketing net sales represent catalog call center and Internet sales. Net sales from operating segments below the GAAP quantitative thresholds are attributable primarily to our two other operating segments — Factory stores and Franchise stores. These operating segments have never met any of the quantitative thresholds for determining reportable segments and are included in “Corporate and Other.”

(b) Operating income (loss) for the Stores and Direct Marketing segments represents profit before allocations of overhead from the corporate office and the distribution centers (except order fulfillment costs which are allocated to Direct Marketing), interest and income taxes (“four wall” contribution). Total Company shipping costs to customers of approximately $5.0 million and $5.1 million for the second quarter of fiscal years 2012 and 2013 , respectively, and approximately $7.8 million and $8.5 million for the first six months of fiscal years 2012 and 2013, respectively, were recorded to “Sales and marketing, including occupancy costs” in the Condensed Consolidated Statements of Income. Operating income (loss) for “Corporate and Other” consists primarily of costs included in general and administrative costs and operating income or loss related to the Factory stores and the Franchise stores operating segments. Total operating income represents profit before interest and income taxes.

(c) Capital expenditures include payments for property, plant and equipment made for the reportable segment.