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Note 11 - Segment Information
 3 Months Ended
May 02, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
11.
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 locations and other retail delivery operations in the U.S., Canada, China, Denmark, Ireland and the United Kingdom (“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 Asia, Australia, the Middle East, Africa, and South America. 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 2, 2020
                                
Net sales to external customers
    
$ 45,647
      
$ 333
      
$ 644
      
$ 46,624
  
Loss before income taxes
    
(18,376)
      
(39)
      
(249)
      
(18,664)
  
Capital expenditures    
2,849
      
-
      
-
      
2,849
  
Depreciation and amortization
    
3,450
      
7
      
-
      
3,457
  
Thirteen weeks ended May 4, 2019
                                
Net sales to external customers
    
$ 81,048
      
$ 2,754
      
$ 560
      
$ 84,362
  
Income before income taxes
    
1,094
      
1,215
      
101
      
2,410
  
Capital expenditures
    
2,440
      
-
      
-
      
2,440
  
Depreciation and amortization
    
3,510
      
-
      
2
      
3,512
  
                                 
Total Assets as of:
                                
May 2, 2020    
262,693
      
6,563
      
7,571
      
$ 276,827
  
May 4, 2019
    
295,558
      
8,004
      
5,969
      
309,531
  
 
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
  
Thirteen weeks ended May 2, 2020
                                
Net sales to external customers
   $
39,651
     $
6,665
     $
308
     $
46,624
  
Property and equipment, net    
56,915
      
4,704
      
7
      
61,626
  
Thirteen weeks ended May 4, 2019
                                
Net sales to external customers
   $
72,941
     $
10,887
     $
534
     $
84,362
  
Property and equipment, net    
59,502
      
5,839
      
16
      
65,357
  
 
For purposes of this table only:
(
1
)  North America includes corporately managed locations in the United States, Canada, Puerto Rico.
(
2
)  Europe includes corporately managed locations in 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