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Note 11 - Segment Information
 9 Months Ended
Oct. 28, 2023
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-operated locations and other retail delivery operations in the U.S., Canada, 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 select countries 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 October 28, 2023

                

Net sales to external customers

 $100,411  $6,020  $1,131  $107,562 

Income before income taxes

  7,233   2,740   375   10,348 

Capital expenditures

  4,986   -   -   4,986 

Depreciation and amortization

  3,152   79   -   3,231 

Thirteen weeks ended October 29, 2022

                

Net sales to external customers

 $99,229  $4,125  $1,126  $104,480 

Income before income taxes

  7,771   2,009   108   9,888 

Capital expenditures

  2,685   -   -   2,685 

Depreciation and amortization

  2,924   95   -   3,019 
                 

Thirty-nine weeks ended October 28, 2023

                

Net sales to external customers

 $315,972  $17,685  $3,180  $336,837 

Income before income taxes

  31,225   7,882   1,073   40,180 

Capital expenditures

  11,124   -   -   11,124 

Depreciation and amortization

  9,266   274   -   9,540 

Thirty-nine weeks ended October 29, 2022

                

Net sales to external customers

 $308,001  $12,465  $2,361  $322,827 

Income before income taxes

  29,174   5,705   843   35,722 

Capital expenditures

  6,752   -   -   6,752 

Depreciation and amortization

  8,888   407   -   9,295 

Total Assets as of:

                

October 28, 2023

 $238,604  $10,753  $1,186  $250,543 

January 28, 2023

  272,221   7,466   1,107   280,794 

October 29, 2022

  253,595   5,045   1,161   259,801 

 

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 28, 2023

                

Net sales to external customers

 $93,431  $13,037  $1,094  $107,562 

Thirteen weeks ended October 29, 2022

                

Net sales to external customers

 $90,515  $12,851  $1,114  $104,480 
                 

Thirty-nine weeks ended October 28, 2023

                

Net sales to external customers

 $297,631  $36,822  $2,384  $336,837 

Property and equipment, net

  48,631   3,283   0   51,914 

Thirty-nine weeks ended October 29, 2022

                

Net sales to external customers

 $282,706  $37,754  $2,367  $322,827 

Property and equipment, net

  43,898   2,366   0   46,264 

 

For purposes of this table only:

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

(2)  Europe includes corporately-operated locations in the U.K. and Ireland and sales to wholesale customers in Europe.

(3)  Other includes franchise businesses outside of North America and Europe.