SEGMENTS

12 Months Ended

Jan. 31, 2018

NOTE K — SEGMENTS

The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under brands licensed by the Company from third parties, as well as sales of products under the Company’s own brands and private label brands. Wholesale sales and revenues from license agreements related to the Donna Karan, DKNY, G.H. Bass, Andrew Marc and Vilebrequin businesses are included in the wholesale operations segment. The retail operations segment consists primarily of the Wilsons Leather, G.H. Bass and DKNY stores, as well as a limited number of Calvin Klein Performance and Karl Lagerfeld Paris stores. Sales through the Company’s owned websites are also included in the retail operations segment.

The following information, in thousands, is presented for the fiscal years ended:

	January 31, 2018
	Wholesale			Retail			Elimination(1)			Total
Net sales		$	2,454,008		$	502,494		$	(149,564)		$	2,806,938
Cost of goods sold			1,649,726			251,871			(149,564)			1,752,033
Gross profit			804,282			250,623			—			1,054,905
Selling, general and administrative			571,164			284,083			—			855,247
Depreciation and amortization			27,679			10,104			—			37,783
Asset impairments			2,310			5,574			—			7,884
Operating profit (loss)		$	203,129		$	(49,138)		$	—		$	153,991

	January 31, 2017
	Wholesale			Retail			Elimination(1)			Total
Net sales(2)		$	2,021,736		$	474,217		$	(109,518)		$	2,386,435
Cost of goods sold			1,388,175			267,427			(110,028)			1,545,574
Gross profit			633,561			206,790			510			840,861
Selling, general and administrative			457,785			246,651			—			704,436
Depreciation and amortization			21,483			10,998			—			32,481
Asset impairments			—			10,480			—			10,480
Operating profit (loss)		$	154,293		$	(61,339)		$	510		$	93,464

	January 31, 2016
	Wholesale			Retail			Elimination(1)			Total
Net sales		$	1,949,646		$	514,027		$	(119,531)		$	2,344,142
Cost of goods sold			1,348,109			276,926			(119,531)			1,505,504
Gross profit			601,537			237,101			—			838,638
Selling, general and administrative			398,476			230,286			—			628,762
Depreciation and amortization			17,413			7,979			—			25,392
Operating profit (loss)		$	185,648		$	(1,164)		$	—		$	184,484

(1) Represents intersegment sales to the Company’s retail operations segment.

(2) Certain reclassifications have been made between the wholesale operations segment and the elimination column as a result of sales eliminations within the wholesale operations segment being misclassified as inter-segment eliminations.

The Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels, and relative sales levels, among other factors. The method of allocation has been applied consistently on a year-to-year basis.

The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:

	January 31
	2018			2017
	(In thousands)
Wholesale		$	1,554,191		$	1,477,259
Retail			215,568			228,352
Corporate			145,418			146,333
Total Assets		$	1,915,177		$	1,851,944

The total net sales and long-lived assets by geographic region are as follows:

	2018						2017						2016
Geographic Region	Net Sales			Long-Lived Assets			Net Sales			Long-Lived Assets			Net Sales			Long-Lived Assets
	(In thousands)
United States		$	2,466,107		$	770,128		$	2,180,409		$	790,341		$	2,157,889		$	150,949
Non-United States			340,831			185,448			206,026			178,665			186,253			130,681
		$	2,806,938		$	955,576		$	2,386,435		$	969,006		$	2,344,142		$	281,630

Capital expenditures for locations outside of the United States totaled $3.7 million, $4.6 million and $4.5 million for the years ended January 31, 2018, 2017 and 2016, respectively.