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Note 11 - Segment Information
 6 Months Ended
Aug. 01, 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, Mexico, 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 August 1, 2020

                                

Net sales to external customers

   $ 39,339     $ 865     $ 149     $ 40,353  

(Loss) Income before income taxes

     (14,145 )     239       (77 )     (13,983 )
Capital expenditures     529       -       -       529  

Depreciation and amortization

     3,246       8       -       3,254  

Thirteen weeks ended August 3, 2019

                                

Net sales to external customers

   $ 75,214     $ 3,193     $ 807     $ 79,214  
(Loss) Income before income taxes     (1,900 )     1,520       (362 )     (742 )

Capital expenditures

     2,505       -       -       2,505  

Depreciation and amortization

     3,283       -       2       3,285  
                                 
Twenty-six weeks ended August 1, 2020                                
Net sales to external customers   $ 84,986     $ 1,198     $ 793     $ 86,977  

(Loss) Income before income taxes

     (32,515 )     194       (326 )     (32,647 )
Capital expenditures     3,378       -       -       3,378  
Depreciation and amortization     6,696       15       0       6,711  
Twenty-six weeks ended August 3, 2019                                
Net sales to external customers   $ 156,262     $ 5,947     $ 1,367     $ 163,576  
Income (loss) before income taxes     (806 )     2,735       (261 )     1,668  
Capital expenditures     4,945       -       -       4,945  
Depreciation and amortization     6,793       -       4       6,797  

Total Assets as of:

                                
August 1, 2020     253,684       6,852       7,727     $ 268,263  

August 3, 2019

     285,196       7,796       6,202       299,194  

 

 

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 August 1, 2020

                                

Net sales to external customers

   $ 34,985     $ 5,141     $ 227     $ 40,353  

Thirteen weeks ended August 3, 2019

                                

Net sales to external customers

   $ 68,456     $ 10,195     $ 563     $ 79,214  
                                 
Twenty-six weeks ended August 1, 2020                                
Net sales to external customers   $ 74,636     $ 11,806     $ 535     $ 86,977  
Property and equipment, net     53,735       4,350       -       58,085  
Twenty-six weeks ended August 3, 2019                                
Net sales to external customers   $ 141,397     $ 21,082     $ 1,097     $ 163,576  
Property and equipment, net     59,008       5,170       13       64,191  

 

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 includes a corporately-managed location in China