. Segment Information

The Company’s operations are conducted through

three

operating segments consisting of direct-to-consumer (DTC), commercial and international franchising. The DTC segment includes the operating activities of corporately-managed stores in the United States, Canada, the United Kingdom, Ireland, Denmark and China and other retail delivery operations, including the Company’s ecommerce sites and temporary stores. The international franchising segment includes the licensing activities of the Company’s franchisees with store locations in Europe (outside of the United Kingdom, Ireland and Denmark), Asia, 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 May 5, 2018
Net sales to external customers	$	81,425		$	1,019	$	740	$	83,184
(Loss) income before income taxes		(23)			362		307		646
Capital expenditures		3,030			-		-		3,030
Depreciation and amortization		4,116			1		(2)		4,115
Thirteen weeks ended April 29, 2017
Net sales to external customers	$	88,743		$	2,038	$	422	$	91,203
Income before income taxes		3,478			792		154		4,424
Capital expenditures		3,808			-		-		3,808
Depreciation and amortization		3,889			1		17		3,907
Five weeks ended February 3, 2018
Net sales to external customers	$	29,586		$	358	$	279	$	30,223
(Loss) income before income taxes		(1,269	)		95		146		(1,028	)
Capital expenditures		1,270			-		-		1,270
Depreciation and amortization		1,505			-		2		1,507
Total Assets as of:
May 5, 2018	$	161,497		$	6,267	$	4,890	$	172,654
April 29, 2017		183,278			5,734		2,365		191,377

The Company’s reportable segments are primarily determined by the types of products and services that each offers. 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 May 5, 2018
Net sales to external customers	$	69,968	$	12,826	$	390	$	83,184
Property and equipment, net		66,664		9,722		24		76,410
Thirteen weeks ended April 29, 2017
Net sales to external customers	$	76,743	$	14,036	$	424	$	91,203
Property and equipment, net		64,641		9,261		35		73,937
Five weeks ended February 3, 2018
Net sales to external customers	$	24,575	$	5,471	$	177	$	30,223

For purposes of this table only:

(

) North America includes the United States, Canada, Puerto Rico and international franchising revenue in Mexico

(

) Europe includes the United Kingdom, Ireland, Denmark and international franchising revenue in Europe

(

) Other includes international franchising revenue outside of North America and Europe and a corporately-managed store in China