UNAUDITED QUARTERLY FINANCIAL DATA

The Company experiences seasonal fluctuations in its sales and profitability due to the timing of certain holidays and key retail shopping periods, typically resulting in lower sales and gross profit in the first half of its fiscal year.

The unaudited summarized financial data by quarter for the fiscal years ended December 29, 2018 and December 30, 2017 is presented in the table below:



(dollars in thousands, except per share data)	Quarter 1		Quarter 2		Quarter 3		Quarter 4⁽²⁾
Fiscal 2018:
Net sales	$	755,786	$	696,197	$	923,907	$	1,086,379
Gross profit	$	332,477	$	309,958	$	387,450	$	467,598
Royalty income, net	$	7,994	$	10,355	$	10,224	$	10,357
Selling, general, and administrative expenses	$	280,162	$	263,343	$	294,117	$	307,358
Operating income	$	60,309	$	56,970	$	103,557	$	170,597
Net income	$	42,469	$	37,268	$	71,770	$	130,561
Basic net income per common share⁽¹⁾	$	0.90	$	0.80	$	1.55	$	2.85
Diluted net income per common share⁽¹⁾	$	0.89	$	0.79	$	1.53	$	2.83

Fiscal 2017:
Net sales	$	732,827	$	691,751	$	948,046	$	1,027,880
Gross profit	$	315,692	$	303,247	$	403,578	$	460,837
Royalty income, net	$	10,558	$	11,210	$	10,350	$	11,063
Selling, general, and administrative expenses	$	247,794	$	250,146	$	283,480	$	325,508
Operating income	$	78,456	$	64,311	$	130,448	$	146,392
Net income	$	46,595	$	37,793	$	82,316	$	136,144
Basic net income per common share⁽¹⁾	$	0.96	$	0.78	$	1.73	$	2.88
Diluted net income per common share⁽¹⁾	$	0.95	$	0.77	$	1.71	$	2.85


(1)	May not be additive to the net income per common share amounts for the fiscal year due to the calculation provision of ASC 260, Earnings Per Share.


(2)	The provision for income taxes recognized during the fourth quarter of fiscal 2017 reflects a benefit of $40.0 million related to the accounting for the December 22, 2017 enactment of tax law changes known as the U.S. Tax Cuts and Jobs Act of 2017.