XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Note 11 - Segment Information
 9 Months Ended
Oct. 31, 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 October 31, 2020

                

Net sales to external customers

 $72,368  $1,858  $447  $74,673 

Income before income taxes

  713   803   154   1,670 
Capital expenditures  651   -   -   651 

Depreciation and amortization

  3,186   8   -   3,194 

Thirteen weeks ended November 2, 2019

                

Net sales to external customers

 $66,575  $2,560  $1,249  $70,384 
(Loss) Income before income taxes  (8,578)  753   131   (7,694)

Capital expenditures

  5,155   -   -   5,155 

Depreciation and amortization

  3,560   -   1   3,561 
                 
Thirty-nine weeks ended October 31, 2020                
Net sales to external customers $157,354  $3,056  $1,240  $161,650 

(Loss) Income before income taxes

  (31,802)  997   (172)  (30,977)
Capital expenditures  4,029   -   -   4,029 
Depreciation and amortization  9,882   23   0   9,905 
Thirty-nine weeks ended November 2, 2019                
Net sales to external customers $222,837  $8,507  $2,616  $233,960 
(Loss) Income before income taxes  (9,385)  3,488   (130)  (6,027)
Capital expenditures  10,099   -   -   10,099 
Depreciation and amortization  10,354   -   5   10,359 

Total Assets as of:

                
October 31, 2020  244,030   7,088   8,319  $259,437 

November 2, 2019

  281,365   7,508   7,804   296,677 

 

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 October 31, 2020

                

Net sales to external customers

 $62,768  $11,320  $585  $74,673 

Thirteen weeks ended November 2, 2019

                

Net sales to external customers

 $57,503  $11,557  $1,324  $70,384 
                 
Thirty-nine weeks ended October 31, 2020                
Net sales to external customers $137,404  $23,126  $1,120  $161,650 
Property and equipment, net  51,314   4,107   -   55,421 
Thirty-nine weeks ended November 2, 2019                
Net sales to external customers $198,900  $32,639  $2,421  $233,960 
Property and equipment, net  60,481   5,462   11   65,954 

 

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