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Note 11 - Segment Information
 3 Months Ended
May 01, 2021
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 United States (U.S.), Canada, China, 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 1, 2021

                

Net sales to external customers

 $89,212  $2,109  $372  $91,693 

Income before income taxes

  12,481   818   (118)  13,181 
Capital expenditures  491   -   -   491 

Depreciation and amortization

  3,122   5   -   3,127 

Thirteen weeks ended May 2, 2020

                

Net sales to external customers

 $45,647  $333  $644  $46,624 
(Loss) Income before income taxes  (18,370)  (45)  (249)  (18,664)

Capital expenditures

  2,849   -   -   2,849 

Depreciation and amortization

  3,450   7   -   3,457 
Total Assets as of:                
May 1, 2021 $248,283  $7,210  $8,890  $264,383 
May 2, 2020  262,693   6,563   7,571   276,827 

 

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 1, 2021                

Net sales to external customers

 $85,753  $5,409  $531  $91,693 
Property and equipment, net  46,575   3,842   -   50,417 

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 

 

For purposes of this table only:

(1)  North America includes corporately-managed locations in the United States and Canada.

(2)  Europe includes corporately-managed locations in the U.K. and Ireland.

(3)  Other includes franchise businesses outside of North America and Europe and includes a corporately-managed location in China that recently closed.