v2.4.0.6
Segment Information
 6 Months Ended
Jan. 28, 2012
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 and e-commerce operations of the dressbarn brand.
  •   maurices segment – consists of the specialty retail and e-commerce operations of the maurices brand.
  •   Justice segment – consists of the specialty retail, 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-month and six-month periods ended January 29, 2011 have 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     Six Months Ended  
    January 28,     2012     January 29,     2011     January 28,     2012     January 29,     2011  
    (millions)  
Net sales:                                
dressbarn   $ 230.2     $ 211.6     $ 475.6     $ 451.7  
maurices     224.6       202.8       427.5       385.3  
Justice     407.2       337.7       727.2       628.4  
Total net sales   $ 862.0     $ 752.1     $ 1,630.3     $ 1,465.4  
                                 
Operating income:                                
dressbarn   $ (3.4 )   $ (5.2 )   $ 1.6     $ 2.1  
maurices     26.4       24.5       50.1       49.8  
Justice     77.0       52.2       124.8       97.4  
Total operating income   $ 100.0     $ 71.5     $ 176.5     $ 149.3  
                                 
Depreciation and amortization expense:                                
dressbarn   $ 8.2     $ 6.9     $ 15.9     $ 14.2  
maurices     6.2       5.5       12.7       11.1  
Justice     11.1       9.2       21.0       19.2  
Total depreciation and amortization expense   $ 25.5     $ 21.6     $ 49.6     $ 44.5  
                                 

 

A reconciliation of the Company’s operating income for each segment under the historical and recasted basis of reporting for the three-month and six-month periods ended January 29, 2011 is as follows:

 

    January 29, 2011  
    Three Months Ended     Six Months Ended  
    As Previously Reported     Adjustment     As Recasted     As Previously Reported     Adjustment     As Recasted  
    (millions)  
Operating income:                                                
dressbarn   $ (10.3 )   $ 5.1     $ (5.2 )   $ (6.8 )   $ 8.9     $ 2.1  
maurices     27.1       (2.6 )     24.5       55.0       (5.2 )     49.8  
Justice     54.7       (2.5 )     52.2       101.1       (3.7 )     97.4  
Total operating income   $ 71.5     $ --     $ 71.5     $ 149.3     $ --     $ 149.3