Segment Reporting

3 Months Ended

May 04, 2013

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, 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 the revenues or expenses of the Company.  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 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 Quarter Ended
	May 4, 2013		April 28, 2012
Net sales:
MW (1)	$	401,835	$	371,468
Moores	53,771		55,478
K&G	97,340		103,092
MW Cleaners	7,235		6,654
Total retail segment	560,181		536,692
Twin Hill	7,959		7,065
Dimensions and Alexandra (UK)	48,396		42,817
Total corporate apparel segment	56,355		49,882
Total net sales	$	616,536	$	586,574

(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
	May 4, 2013		April 28, 2012
Net sales:
Men’s tailored clothing product	$	234,844	$	230,280
Men’s non-tailored clothing product	166,773		166,888
Ladies’ clothing product	22,120		23,301
Total retail clothing product	423,737		420,469
Tuxedo rental services	98,482		78,489
Alteration services	30,727		31,080
Retail dry cleaning services	7,235		6,654
Total alteration and other services	37,962		37,734
Corporate apparel clothing product	56,355		49,882
Total net sales	$	616,536	$	586,574

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

	For the Quarter Ended
	May 4, 2013			April 28, 2012
Operating income (loss):
Retail	$	51,470		$	43,367
Corporate apparel	1,083			(2,420		)
Operating income	52,553			40,947
Interest income	121			128
Interest expense	(344		)	(433		)
Earnings before income taxes	$	52,330		$	40,642