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Segment Information
 9 Months Ended
Dec. 27, 2014
Segment Information

12. Segment Information

The Company operates its business through three operating segments—Retail, Wholesale and Licensing—which are based on its business activities and organization. The operating segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of Licensing) and operating income for each segment. The Company’s reportable segments represent channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. Sales of the Company’s products through Company owned stores for the Retail segment include “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout North America, Europe, and Japan. Products sold through the Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), footwear and licensed products, such as watches, jewelry, fragrances and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout North America and Europe. Products sold through the Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products in certain geographical regions such as the Middle East, Eastern Europe, Latin America and the Caribbean, throughout all of Asia (excluding Japan), as well as Australia. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods.

 

The Company has allocated $12.1 million and $1.9 million of its recorded goodwill to its Wholesale and Licensing segments, respectively. The Company does not have identifiable assets separated by segment. The following table presents the key performance information of the Company’s reportable segments (in thousands):

 

         Three Months Ended      Nine Months Ended  
         December 27,
2014		      December 28,
2013		      December 27,
2014		      December 28,
2013		  

Revenue:

              

Net sales:

  

Retail

    $ 689,388       $ 503,380       $ 1,665,209       $ 1,184,625   
 

Wholesale

      573,838         461,407         1,494,723         1,103,854   

Licensing

        51,500         47,442         130,553         104,912   
    

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

    $ 1,314,726       $ 1,012,229       $ 3,290,485       $ 2,393,391   
    

 

 

     

 

 

     

 

 

     

 

 

  

Income from operations:

  

Retail

    $ 214,928       $ 171,281       $ 484,951       $ 377,528   

Wholesale

      170,487         140,685         444,811         320,262   

Licensing

      33,062         31,274         71,044         64,472   
    

 

 

     

 

 

     

 

 

     

 

 

  

Income from operations

    $ 418,477       $ 343,240       $ 1,000,806       $ 762,262   
    

 

 

     

 

 

     

 

 

     

 

 

  

Depreciation and amortization expense for each segment are as follows (in thousands):

 

     Three Months Ended      Nine Months Ended  
     December 27,
2014		      December 28,
2013		      December 27,
2014		      December 28,
2013		  

Depreciation and amortization:

            

Retail

    $ 22,414       $ 12,316       $ 62,401       $ 32,749   

Wholesale

      15,007         9,145         37,505         22,519   

Licensing

      71         194         648         419   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total depreciation and amortization

    $ 37,492       $ 21,655       $ 100,554       $ 55,687   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands):

 

     Three Months Ended      Nine Months Ended  
     December 27,
2014		      December 28,
2013		      December 27,
2014		      December 28,
2013		  

Revenue:

            

North America (U.S. and Canada)

    $ 1,057,281       $ 862,619       $ 2,578,396       $ 2,032,450   

Europe

      241,415         140,294         664,836         335,822   

Japan

      16,030         9,316         47,253         25,119   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

    $ 1,314,726       $ 1,012,229       $ 3,290,485       $ 2,393,391   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     December 27,
2014		      March 29,
2014		  

Long-lived assets:

      

North America (U.S. and Canada)

    $ 411,669       $ 283,162   

Europe

      173,010         108,074   

Japan

      11,269         7,476   
  

 

 

     

 

 

  

Total Long-lived assets:

    $ 595,948       $ 398,712