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Segment Information (Tables)

6 Months Ended

Aug. 04, 2018

Segment Reporting [Abstract]

Summary of net revenue and earnings (loss) from operations by segment

Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 4, 2018 and July 29, 2017 (in thousands):    

	Three Months Ended								Six Months Ended
	Aug 4, 2018				Jul 29, 2017				Aug 4, 2018				Jul 29, 2017
Net revenue:
Americas Retail	$	197,125			$	201,188			$	368,465			$	374,882
Americas Wholesale	34,253				32,658				74,932				68,515
Europe	311,998				255,215				517,433				420,603
Asia	82,786				62,733				166,837				126,114
Licensing (1) (2)	19,709				16,498				39,493				32,523
Total net revenue (1) (2)	$	645,871			$	568,292			$	1,167,160			$	1,022,637
Earnings (loss) from operations:
Americas Retail (2) (3) (4)	$	5,582			$	(3,555	)		$	(98	)		$	(25,136	)
Americas Wholesale (2) (3) (4)	5,325				5,238				11,351				12,221
Europe (3) (4) (5)	30,531				30,058				10,198				29,052
Asia (3) (4)	1,634				2,441				5,699				2,780
Licensing (2) (3) (4)	17,437				14,389				34,923				27,850
Total segment earnings from operations (2) (3) (5)	60,509				48,571				62,073				46,767
Corporate overhead (2) (3) (5)	(25,647		)		(23,551		)		(51,492		)		(43,960		)
Net gains on lease terminations (3) (6)	—				—				152				—
Asset impairment charges (3) (7)	(2,981		)		(1,233		)		(3,740		)		(3,995		)
Total earnings (loss) from operations (2) (5)	$	31,881			$	23,787			$	6,993			$	(1,188	)

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(1) During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales to reflect its treatment as a reduction of the cost of such licensed product. Accordingly, net revenue for the three and six months ended July 29, 2017 has been adjusted to conform to the current period presentation. This reclassification had no impact on previously reported earnings (loss) from operations.

(2) During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $2.1 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $0.5 million, $0.2 million, $0.2 million and $0.5 million, respectively, during the three months ended August 4, 2018 compared to the same prior-year period. The net favorable impact on earnings from operations was approximately $0.6 million during the three months ended August 4, 2018 compared to the same prior-year period. During the six months ended August 4, 2018, the adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $4.4 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $2.3 million, $0.9 million, $0.4 million and $1.1 million, respectively, during the six months ended August 4, 2018 compared to the same prior-year period. The net unfavorable impact on earnings from operations was approximately $0.4 million during the six months ended August 4, 2018 compared to the same prior-year period. Refer to Note 1 for more information regarding the impact from the adoption of this new standard.

(3) During the third quarter of fiscal 2018, segment results were adjusted to exclude corporate performance-based compensation costs, net gains (losses) on lease terminations and asset impairment charges due to the fact that these items are no longer included in the segment results provided to the Company’s chief operating decision maker in order to allocate resources and assess performance. Accordingly, segment results have been adjusted for the three and six months ended July 29, 2017 to conform to the current period presentation.

(4) During the first quarter of fiscal 2019, the Company changed the segment accountability for funds received from licensees on the Company’s purchases of its licensed products. These amounts were treated as a reduction of cost of product sales within the Licensing segment but now are considered in the results of the segments that control the respective purchases for purposes of segment performance evaluation. Accordingly, segment results for the three and six months ended July 29, 2017 have been adjusted to conform to the current period presentation.

(5) During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, earnings (loss) from operations and segment results for the three and six months ended July 29, 2017 have been adjusted to conform to the current period presentation.

(6) During the six months ended August 4, 2018, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in North America. The net gains on lease terminations were recorded during the three months ended May 5, 2018. Refer to Note 1 for more information regarding the net gains on lease terminations.

(7) During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 14 for more information regarding these asset impairment charges.

Summary of net revenue by country

Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):

	Three Months Ended								Six Months Ended
	Aug 4, 2018				Jul 29, 2017				Aug 4, 2018				Jul 29, 2017
Net revenue:
U.S.	$	176,064			$	174,991			$	338,434			$	337,171
Italy	89,380				81,196				148,286				128,394
Canada	45,822				49,130				86,335				89,524
South Korea	35,996				34,283				74,083				72,838
Other foreign countries	298,609				228,692				520,022				394,710
Total net revenue	$	645,871			$	568,292			$	1,167,160			$	1,022,637

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- Definition

Tabular disclosure of disaggregation of revenue into categories depicting how nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factor.

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

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