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SEGMENT INFORMATION | 12 Months Ended
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Dec. 28, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports segment information based upon a “management approach.” The management approach refers to the internal reporting that is used by management for making operating decisions and assessing the performance of the Company’s reportable segments. The Company has identified three operating and reportable segments: U.S. Retail, U.S. Wholesale, and International. The U.S. Retail segment consists of revenue primarily from sales of products in the United States through our retail stores and eCommerce websites. Similarly, the U.S. Wholesale segment consists of revenue primarily from sales in the United States of products to our wholesale partners. The International segment consists of revenue primarily from sales of products outside the United States, largely through our retail stores and eCommerce websites in Canada and Mexico, and sales to our international wholesale customers and licensees. The Company sells similar products in each of its three segments. The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker evaluates the operating performance of the segments based upon each segment’s net sales and segment operating income. Segment operating income includes net sales, royalty income, and related cost of goods sold and selling, general, and administrative expenses attributable to each segment. Segment operating income excludes unallocated corporate expenses as well as specific charges that are not directly attributable to segment operations, including restructuring costs and impairment charges related to goodwill and indefinite-lived intangible assets. In fiscal 2024, the Company changed its measure of segment profitability to segment operating income, which excludes the charges mentioned above, and which were included in our previous measure of segment profitability, to better align with management’s assessment of segment performance and to provide better insights into segment performance. Prior period segment operating income for the fiscal years ended December 30, 2023 and December 31, 2022 has been recast to conform to the current presentation. The chief operating decision maker uses both net sales and segment operating income for each segment predominantly in the annual budget and quarterly forecasting process. On a quarterly basis, the chief operating decision maker considers budget-to-actual variances and a comparison of segment results for evaluating performance of each segment and making decisions about the allocation of operating and capital resources to each segment. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segments assets are not presented. Segment operating income include the direct costs of each segment and all other costs are allocated based upon detailed estimates and analysis of actual time and expenses incurred to support the operations of each segment or units produced or sourced to support each segment’s revenue. Certain costs, including incentive compensation for certain employees, and various other general corporate costs that are not specifically allocable to segments, are included in unallocated corporate expenses below. Intersegment sales are treated as a transfer of inventory and are not included in segment results for management reporting. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements. Segment Performance The tables below present certain segment information for our reportable segments for the periods indicated:
| Fiscal year ended December 28, 2024
(dollars in thousands) | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Net sales | $ | 1,417,108 |  |  | $ | 1,021,396 |  |  | $ | 405,598 |  |  | $ | 2,844,102 |
Cost of goods sold(1) | 567,435 |  |  | 705,550 |  |  | 205,951 |  |  | 1,478,936 |
Selling expenses(2) | 489,481 |  |  | 9,591 |  |  | 103,566 |  |  | 602,638 |
Distribution expenses(3) | 89,368 |  |  | 62,875 |  |  | 24,607 |  |  | 176,850 |
Other segment items(4) | 137,898 |  |  | 26,400 |  |  | 32,504 |  |  | 196,802 |
Segment operating income | $ | 132,926 |  |  | $ | 216,980 |  |  | $ | 38,970 |  |  | $ | 388,876 |
(1)Refer to Note 2, Summary of Significant Accounting Policies for additional information on the components of Cost of goods sold. (2)Selling expenses include the costs of operating our retail stores and eCommerce channels, as well as wholesale sales management costs. (3)Distribution expenses include payments to third-party shippers and handling costs to process product through our distribution facilities, including eCommerce fulfillment costs, and delivery to our wholesale customers and to our retail stores. (4)Other segment items include royalty income and overhead costs that are attributable to our reportable segments and include allocated accounting, finance, human resources, and information technology expenses, occupancy costs, and other benefit and compensation programs, including performance-based compensation.
| Fiscal year ended December 30, 2023
(dollars in thousands) | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Net sales | $ | 1,501,780 |  |  | $ | 1,014,584 |  |  | $ | 429,230 |  |  | $ | 2,945,594 |
Cost of goods sold | 602,152 |  |  | 717,936 |  |  | 229,571 |  |  | 1,549,659 |
Selling expenses | 506,709 |  |  | 8,363 |  |  | 95,155 |  |  | 610,227 |
Distribution expenses | 95,354 |  |  | 63,188 |  |  | 24,903 |  |  | 183,445 |
Other segment items | 106,923 |  |  | 26,152 |  |  | 34,470 |  |  | 167,545 |
Segment operating income | $ | 190,642 |  |  | $ | 198,945 |  |  | $ | 45,131 |  |  | $ | 434,718 |
| Fiscal year ended December 31, 2022
(dollars in thousands) | U.S. Retail |  | U.S. Wholesale |  | International |  | Total
Net sales | $ | 1,680,159 |  |  | $ | 1,080,471 |  |  | $ | 452,103 |  |  | $ | 3,212,733 |
Cost of goods sold | 689,543 |  |  | 800,974 |  |  | 249,858 |  |  | 1,740,375 |
Selling expenses | 521,516 |  |  | 9,402 |  |  | 89,452 |  |  | 620,370 |
Distribution expenses | 113,455 |  |  | 78,079 |  |  | 24,653 |  |  | 216,187 |
Other segment items | 102,788 |  |  | 24,777 |  |  | 28,462 |  |  | 156,027 |
Segment operating income | $ | 252,857 |  |  | $ | 167,239 |  |  | $ | 59,678 |  |  | $ | 479,774 |
The table below presents a reconciliation of reportable segment operating income to Income before income taxes:
| Fiscal year ended
| December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Total segment operating income | $ | 388,876 |  |  | $ | 434,718 |  |  | $ | 479,774 |
Items not included in segment operating income: |  |  |  |  |
Unallocated corporate expenses(1) | (102,326) |  |  | (106,901) |  |  | (91,603) |
Organizational restructuring(2) | (1,822) |  |  | (4,412) |  |  | — |
OshKosh tradename impairment charge | (30,000) |  |  | — |  |  | — |
Skip Hop tradename impairment charge | — |  |  | — |  |  | (9,000) |
Consolidated operating income | $ | 254,728 |  |  | $ | 323,405 |  |  | $ | 379,171 |
Interest expense | 31,331 |  |  | 33,973 |  |  | 42,781 |
Interest income | (11,039) |  |  | (4,776) |  |  | (1,261) |
Other expense (income), net | 3,627 |  |  | (8,034) |  |  | 975 |
Loss on extinguishment of debt | — |  |  | — |  |  | 19,940 |
Income before income taxes | $ | 230,809 |  |  | $ | 302,242 |  |  | $ | 316,736 |
(1)Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our reportable segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for our corporate headquarters, and other benefit and compensation programs, including performance-based compensation. (2)Related to charges for corporate organizational restructuring in the fiscal year ended December 28, 2024 and organizational restructuring and related corporate office lease amendment actions in the fiscal year ended December 30, 2023. Additional Data by Segment The tables below present additional information for our reportable segments for the periods presented: Depreciation and amortization expense
| Fiscal year ended
| December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
U.S. Wholesale | $ | 8,749 |  |  | $ | 10,958 |  |  | $ | 13,415 |
U.S. Retail | 35,562 |  |  | 38,710 |  |  | 39,975 |
International | 11,413 |  |  | 11,758 |  |  | 11,695 |
Unallocated corporate | 2,202 |  |  | 2,713 |  |  | 191 |
Total | 57,926 |  |  | 64,139 |  |  | 65,276 |
Inventory
| December 28, 2024 |  | December 30, 2023
Inventory: |  |  |
U.S. Wholesale(*) | $ | 374,610 |  |  | $ | 381,146 |
U.S. Retail | 59,868 |  |  | 73,366 |
International | 67,854 |  |  | 82,613 |
Total inventory | $ | 502,332 |  |  | $ | 537,125 |
All other assets | 1,930,835 |  |  | 1,841,488 |
Total assets | $ | 2,433,167 |  |  | $ | 2,378,613 |
(*)U.S. Wholesale inventories also include inventory produced and warehoused for the U.S. Retail segment. Net Sales The table below represents consolidated net sales by product:
| Fiscal year ended
(dollars in thousands) | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Baby | $ | 1,139,129 |  |  | $ | 1,098,304 |  |  | $ | 1,103,023 |
Playclothes | 948,602 |  |  | 992,726 |  |  | 1,125,352 |
Sleepwear | 373,373 |  |  | 411,678 |  |  | 492,152 |
Other(*) | 382,998 |  |  | 442,886 |  |  | 492,206 |
Total net sales | $ | 2,844,102 |  |  | $ | 2,945,594 |  |  | $ | 3,212,733 |
(*)Other product offerings include bedding, outerwear, swimwear, shoes, socks, diaper bags, gift sets, toys, and hair accessories. Geographical Data Revenue The Company’s international sales principally represent sales to customers in Canada. Such sales were 61.3%, 61.5%, and 64.0% of total international net sales in fiscal 2024, 2023, and 2022, respectively. Long-Lived Assets The following represents Property, plant, and equipment, net, and Operating lease assets by geographic area:
(dollars in thousands) | December 28, 2024 |  | December 30, 2023
United States | $ | 614,751 |  |  | $ | 582,049 |
International | 143,338 |  |  | 129,469 |
Total | $ | 758,089 |  |  | $ | 711,518 |
Long-lived assets in the international segment primarily relate to Canada. Long-lived assets in Canada were 53.8% and 51.0% of total international long-lived assets as of December 28, 2024 and December 30, 2023, respectively. Major Customers Our two largest U.S. wholesale customers accounted for 10.9% and 10.1%, respectively, of consolidated net sales in fiscal 2024. Our largest U.S. wholesale customer accounted for 10.4% of consolidated net sales in fiscal 2023. Sales to these customers did not exceed 10% in fiscal 2022.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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