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Note 8 - Segment Information
 6 Months Ended
Jul. 02, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
8. Segment Information
 
The Company’s operations are conducted through three operating segments consisting of direct-to-consumer (DTC), formerly retail, international franchising, and commercial. The DTC segment includes the operating activities of company-owned stores in the United States, Canada, the United Kingdom, Ireland, Denmark and China and other retail delivery operations, including the Company’s e-commerce sites and temporary stores. The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in Europe (outside of the United Kingdom, Ireland and Denmark), Asia (outside of China), Australia, the Middle East, Africa and Mexico. The commercial segment includes the Company’s transactions with other businesses, mainly comprised of licensing the Company’s intellectual properties for third party use and wholesale activities. The operating segments have discrete sources of revenue, different capital structures and different cost structures. These operating segments represent the basis on which the Company’s chief operating decision maker regularly evaluates the business in assessing performance, determining the allocation of resources and the pursuit of future growth opportunities. Accordingly, the Company has determined that each of its operating segments represent a reportable segment. The three reportable segments follow the same accounting policies used for the Company’s consolidated financial statements.
 
 
 
Following is a summary of the financial information for the Company’s reportable segments (in thousands):
 
 
 
 
 
Direct-to-
 
 
 
 
 
 
International
 
 
 
 
 
 
 
Consumer
 
 
Commercial
 
 
Franchising
 
 
Total
 
                                 
Thirteen weeks ended July 2, 2016
                                
Net sales to external customers
   $ 73,928     $ 798     $ 413     $ 75,139  
Income (loss) before income taxes
    (6,648 )     270       135       (6,243 )
Capital expenditures, net
     5,677       -       20       5,697  
Depreciation and amortization
    3,785       1       22       3,808  
                                 
Thirteen weeks ended July 4, 2015
                                
Net sales to external customers
   $ 80,279     $ 187     $ 548     $ 81,014  
Income (loss) before income taxes
    (684 )     4       242       (438 )
Capital expenditures, net
     3,190       -       12       3,202  
Depreciation and amortization
    3,982       -       33       4,015  
                                 
Twenty-six weeks ended July 2, 2016
                                
Net sales to external customers
   $ 167,984     $ 1,279     $ 852     $ 170,115  
Income (loss) before income taxes
    (1,452 )     413       68       (971 )
Capital expenditures, net
     11,857       -       25       11,882  
Depreciation and amortization
    7,571       1       47       7,619  
                                 
Twenty-six weeks ended July 4, 2015
                                
Net sales to external customers
   $ 171,943     $ 1,364     $ 1,099     $ 174,406  
Income before income taxes
    5,420       822       372       6,614  
Capital expenditures, net
     6,048       -       32       6,080  
Depreciation and amortization
    8,163       -       70       8,233  
                                 
Total Assets as of:
                                
July 2, 2016
   $ 168,827     $ 5,377     $ 2,156     $ 176,360  
July 4, 2015
   $ 170,545     $ 4,845     $ 2,194     $ 177,584  
 
 
 
The Company’s reportable segments are primarily determined by the types of products and services that they offer.  Each reportable segment may operate in many geographic areas.  The Company allocates revenues to geographic areas based on the location of the customer or franchisee.  The following schedule is a summary of the Company’s sales to external customers and long-lived assets by geographic area (in thousands):
 
 
 
North
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
America
(1)
 
 
Europe
(2)
 
 
Other
(3)
 
 
Total
 
Thirteen weeks ended July 2, 2016
                                
Net sales to external customers
   $ 61,371     $ 13,430     $ 338     $ 75,139  
Property and equipment, net
     61,263       7,548       1,061       69,872  
Thirteen weeks ended July 4, 2015
                                
Net sales to external customers
   $ 64,472     $ 16,213     $ 329     $ 81,014  
Property and equipment, net
     52,604       5,835       -       58,439  
                                 
Twenty-six weeks ended July 2, 2016
                                
Net sales to external customers
   $ 140,878     $ 28,638     $ 599     $ 170,115  
Property and equipment, net
     61,263       7,548       1,061     $ 69,872  
Twenty-six weeks ended July 4, 2015
                                
Net sales to external customers
   $ 141,119     $ 32,628     $ 659     $ 174,406  
Property and equipment, net
     52,604       5,835       -       58,439  
  
For purposes of this table only:
(1)  North America includes the United States, Canada, Puerto Rico and franchise business in Mexico
(2)  Europe includes the United Kingdom, Ireland, Denmark and franchise businesses in Europe
(3)  Other includes franchise businesses outside of North America and Europe and, beginning in 2016, a company-owned store in China