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Note 15 - Segment Information
 12 Months Ended
Feb. 01, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
(
15
)
Segment Information
 
The Company’s operations are conducted through
three
operating segments consisting of DTC, commercial and international franchising. The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, China, Denmark, Ireland and the U.K., including the Company’s e-commerce sites and temporary stores. 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 international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in Europe (outside of the U.K., Ireland and Denmark), Asia, Australia, the Middle East, Africa and Mexico. 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 reporting segments (in thousands):
 
   
Direct-to-
      
 
 
  
International
      
 
 
   
Consumer
    
Commercial
    
Franchising
    
Total
  
                                 
Fifty-two weeks ended February 1, 2020
                                
Net sales to external customers
   $
323,491
     $
11,892
     $
3,160
     $
338,543
  
Income (loss) before income taxes
    
(3,276
 )    
4,995
      
(158
 )    
1,561
  
Capital expenditures
    
12,384
      
-
      
-
      
12,384
  
Depreciation and amortization
    
13,699
      
-
      
6
      
13,705
  
Fifty-two weeks ended February 2, 2019
                                
Net sales to external customers
   $
326,304
     $
6,560
     $
3,721
     $
336,585
  
Income before income taxes
    
(20,801
 )    
2,293
      
1
      
(18,507
 )
Capital expenditures
    
11,253
      
-
      
-
      
11,253
  
Depreciation and amortization
    
16,013
      
1
      
28
      
16,042
  
                                 
Total Assets as of:
                                
February 1, 2020 (1)
   $
280,543
     $
8,931
     $
7,788
     $
297,262
  
February 2, 2019
    
159,269
      
7,283
      
5,494
      
172,046
  
 
(
1
)The increase in total assets when Comparing
February 1, 2020
to
February 2, 2019
is mainly the result of the adoption of Topic
842
on leases effective
February 3, 2019.
 
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. Revenues are recognized in the 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
  
                                 
Fifty-two weeks ended February 1, 2020
                                
Net sales to external customers
   $
286,968
     $
48,532
     $
3,043
     $
338,543
  
Property and equipment, net
    
60,386
      
5,459
      
10
      
65,855
  
Fifty-two weeks ended February 2, 2019
                                
Net sales to external customers
    
283,347
      
51,231
      
2,007
     $
336,585
  
Property and equipment, net
    
60,490
      
5,860
      
18
      
66,368
  
                                 
 
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 U.K., Ireland, Denmark and franchise businesses in Europe
(
3
)
Other includes franchise businesses outside of North America and Europe and a corporately-managed location in China