Segment Information

3 Months Ended

Oct. 29, 2011

Segment Information

12. Segment Information

The Company’s segment reporting structure reflects a brand-focused approach, designed to optimize the operational coordination and resource allocation of its businesses across multiple functional areas including specialty retail, e-commerce and licensing.  The three reportable segments described below represent the Company’s brand-based activities for which separate financial information is available and which is utilized on a regular basis by the Company’s executive team to evaluate performance and allocate resources.  In identifying reportable segments, the Company considers economic characteristics, as well as products, customers, sales growth potential and long-term profitability.  As such, the Company’s reports its operations in three reportable segments as follows:

• dressbarn segment – consists of the specialty retail, outlet and e-commerce operations of the dressbarn brand.

• maurices segment – consists of the specialty retail, outlet and e-commerce operations of the maurices brand.

• Justice segment – consists of the specialty retail, outlet, e-commerce and licensing operations of the Justice brand

The accounting policies of the Company’s reporting segments are consistent with those described in Notes 2 and 3 to the Company’s consolidated financial statements included in the Fiscal 2011 10-K.  All intercompany revenues are eliminated in consolidation. Corporate overhead expenses are allocated to the segments based upon specific usage or other reasonable allocation methods.

Due to changes in the Company’s corporate overhead cost allocation methodology implemented in Fiscal 2012 as discussed in Note 2, segment information for the three months ended October 30, 2010 has been recasted to conform to the current period’s presentation.  These changes entirely related to the reallocation of corporate overhead costs to each of its three segments, and had no impact on total net sales, total operating income or total depreciation and amortization expense.

Net sales, operating income, and depreciation and amortization expense for each segment under the Company’s new (recasted) basis of reporting are as follows:

	Three Months Ended
	October 29, 2011		October 30, 2010
	(millions)
Net sales:
dressbarn	$	245.4	$	240.2
maurices		202.9		182.5
Justice		320.0		290.6
Total net sales	$	768.3	$	713.3
Operating income:
dressbarn	$	5.0	$	7.2
maurices		23.7		25.3
Justice		47.8		45.2
Total operating income	$	76.5	$	77.7
Depreciation and amortization expense:
dressbarn	$	7.7	$	7.4
maurices		6.5		5.6
Justice		9.9		10.0
Total depreciation and amortization expense	$	24.1	$	23.0

A reconciliation of the Company’s operating income for each segment under the historical and recasted basis of reporting for the three months ended October 30, 2010 is as follows:

	October 30, 2010
	As Previously Reported		Adjustment			As Recasted
	(millions)
Operating income:
dressbarn	$	3.4	$	3.8		$	7.2
maurices		27.9		(2.6	)		25.3
Justice		46.4		(1.2	)		45.2
Total operating income	$	77.7	$	—		$	77.7