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Segment Reporting | 12 Months Ended
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Jan. 31, 2025
Segment Reporting [Abstract] |
Segment Reporting | NOTE 13. SEGMENT REPORTING The Company identifies operating segments according to how business activities are managed and evaluated. Following internal organizational changes and realignment of distribution channel responsibilities in Fourth Quarter 2024, the Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing and Retail. Beginning Fourth Quarter 2024, the Wholesale business is included in Licensing and prior periods were recast to reflect the change in operating segments for comparability purposes. During Fiscal 2022, the Company’s operating segments included Japan eCommerce. See Note 8, Lands’ End Japan Closure. • U.S. eCommerce offers products through the Company’s eCommerce website. • Europe eCommerce offers products primarily to consumers located in Europe and through eCommerce international websites and third-party affiliates. • Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S. • Third Party sells products direct to consumers through third-party marketplace websites. • Licensing earns royalties on the use of Lands’ End trademark and any fulfillment fees for fulfillment services provided by the Company. • Retail sells products through Company Operated stores, located in the U.S. The internal reporting of these operating segments is based, in part, on the reporting and review process used by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer. The CODM assesses segment performance based on variable profit, which is defined as net revenue minus cost of sales and variable selling expenses to evaluate segment profitability and make decisions about resource allocations. The Company’s CODM monitors actual segment variable profit results relative to operating plan and forecast to assess the performance of the business and allocate resources. The CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided. The Company determined the U.S. eCommerce, Outfitters and Third Party operating segments share similar economic and other qualitative characteristics, and therefore the results of these operating segments are aggregated into the U.S. Digital segment. The Europe eCommerce, Licensing and Retail operating segments are not quantitatively significant to be separately reported. The accounting policies of the segments are the same as those described in Note 2. The Company has determined its significant segment expense categories based on amounts regularly provided to the Company’s CODM to evaluate segment profitability and drive strategic decision making. The following presents U.S. Digital segment sales and expenses:
| Fiscal 2024 |  |  | Fiscal 2023 |  |  | Fiscal 2022 |
(in thousands) | Segment |  | Total |  |  | Segment |  | Total |  |  | Segment |  | Total |
Net revenue | $ | 1,154,442 |  | $ | 1,154,442 |  |  | $ | 1,293,178 |  | $ | 1,293,178 |  |  | $ | 1,308,810 |  | $ | 1,308,810 |
All other net revenue (1) |  |  |  | 208,493 |  |  |  |  |  | 179,330 |  |  |  |  |  | 246,619 |
Total consolidated net revenue |  |  | $ | 1,362,935 |  |  |  |  | $ | 1,472,508 |  |  |  |  | $ | 1,555,429 |
Product cost of goods sold |  | 444,092 |  |  |  |  |  | 553,169 |  |  |  |  |  | 590,108 |  |  |
Shipping cost of goods sold |  | 157,557 |  |  |  |  |  | 190,059 |  |  |  |  |  | 213,800 |  |  |
Marketing costs |  | 179,499 |  |  |  |  |  | 174,701 |  |  |  |  |  | 167,440 |  |  |
Variable personnel costs |  | 75,465 |  |  |  |  |  | 69,584 |  |  |  |  |  | 66,266 |  |  |
Other segment expenses (2) |  | 32,407 |  |  |  |  |  | 39,744 |  |  |  |  |  | 36,605 |  |  |
Segment variable profit | $ | 265,422 |  |  |  |  | $ | 265,921 |  |  |  |  | $ | 234,591 |  |  |
(1) All other net revenue is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds and Japan for Fiscal 2022 (2) Other segment expenses include credit card fees, customer service, webhosting, supplies and other miscellaneous expenses The reconciliation between segment variable profit to consolidated income (loss) before income taxes is as follows:
(in thousands) |  | Fiscal 2024 |  |  | Fiscal 2023 |  |  | Fiscal 2022 |
Segment variable profit |  | $ | 265,422 |  |  | $ | 265,921 |  |  | $ | 234,591 |
All other variable profit (1) |  |  | 45,949 |  |  |  | 26,405 |  |  |  | 23,722 |
Depreciation expense |  |  | (33,772 | ) |  |  | (38,465 | ) |  |  | (38,741 | )
Goodwill impairment |  |  | - |  |  |  | (106,700 | ) |  |  | - |
Unallocated corporate expenses (2) |  |  | (226,642 | ) |  |  | (224,676 | ) |  |  | (194,847 | )
Interest expense |  |  | (40,439 | ) |  |  | (48,291 | ) |  |  | (39,768 | )
Loss on extinguishment of debt |  |  | - |  |  |  | (6,666 | ) |  |  | - |
Other (expense) income, net |  |  | (22 | ) |  |  | 655 |  |  |  | 364 |
Income (loss) before income taxes |  | $ | 10,496 |  |  | $ | (131,817 | ) |  | $ | (14,679 | )
(1) All other variable profit is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds and Japan for Fiscal 2022 (2) Unallocated corporate expenses include fixed personnel costs, incentive compensation, office occupancy, information technology and professional fees Net revenue is presented by distribution channel in the following table:
(in thousands) |  | Fiscal 2024 |  | % of Net Revenue |  | Fiscal 2023 |  | % of Net Revenue |  | Fiscal 2022 |  | % of Net Revenue
U.S. eCommerce |  | $ | 842,751 |  | 61.8% |  | $ | 930,314 |  | 63.2% |  | $ | 955,752 |  | 61.4%
Outfitters |  |  | 228,161 |  | 16.7% |  |  | 269,943 |  | 18.3% |  |  | 265,898 |  | 17.1%
Third Party |  |  | 83,530 |  | 6.1% |  |  | 92,921 |  | 6.3% |  |  | 87,160 |  | 5.7%
Total U.S. Digital Segment revenue |  |  | 1,154,442 |  |  |  |  | 1,293,178 |  |  |  |  | 1,308,810 |  |
Europe eCommerce |  |  | 103,079 |  | 7.6% |  |  | 112,855 |  | 7.7% |  |  | 166,627 |  | 10.7%
Licensing and Retail |  |  | 105,414 |  | 7.8% |  |  | 66,475 |  | 4.5% |  |  | 79,992 |  | 5.1%
Total Net revenue |  | $ | 1,362,935 |  |  |  | $ | 1,472,508 |  |  |  | $ | 1,555,429 |  |
The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information:
(in thousands) |  | Fiscal 2024 |  | % of Net Revenue |  | Fiscal 2023 |  | % of Net Revenue |  | Fiscal 2022 |  | % of Net Revenue
United States |  | $ | 1,245,240 |  | 91.4% |  | $ | 1,342,366 |  | 91.2% |  | $ | 1,368,518 |  | 88.0%
Europe |  |  | 105,000 |  | 7.7% |  |  | 114,778 |  | 7.8% |  |  | 135,878 |  | 8.7%
Other (1) |  |  | 12,695 |  | 0.9% |  |  | 15,364 |  | 1.0% |  |  | 51,033 |  | 3.3%
Total Net revenue |  | $ | 1,362,935 |  |  |  | $ | 1,472,508 |  |  |  | $ | 1,555,429 |  |
(1) Fiscal 2022 includes Net revenue of $32.7 million from the Japan eCommerce distribution channel. See Note 8, Lands’ End Japan Closure. Other than the United States no geographic region represented more than 10% of Net revenue. Property and equipment, net by geographical location are as follows:
(in thousands) |  | Fiscal 2024 |  |  | Fiscal 2023 |
United States |  | $ | 109,609 |  |  | $ | 111,254 |
Europe |  |  | 5,923 |  |  |  | 6,588 |
Asia |  |  | 86 |  |  |  | 191 |
Total long-lived assets |  | $ | 115,618 |  |  | $ | 118,033 |
Other than the United States, no geographic region is greater than 10% of total Property and equipment, net.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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