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Segment and Geographic Information
 6 Months Ended
Jul. 31, 2016
Segment Reporting [Abstract]  
Segment and Geographic Information

NOTE 4 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company follows accounting guidance which requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance.

The Company conducts its business in two operating segments: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of watches of quality luxury brands and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Retail segment includes the Company’s retail outlet locations.

The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all other Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 22.3%, 10.0%, 8.3% and 7.2%, respectively, of the Company’s total net sales for the three months ended July 31, 2016. For the three months ended July 31, 2015, the Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 19.8%, 7.7%, 11.9% and 6.5%, respectively, of the Company’s total net sales.  

The Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 22.8%, 9.3%, 9.2% and 6.3%, respectively, of the Company’s total net sales for the six months ended July 31, 2016. For the six months ended July 31, 2015, the Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 19.9%, 7.6%, 11.6% and 7.0%, respectively, of the Company’s total net sales. Substantially all of the Company’s International assets are located in Switzerland and Hong Kong.

 

Operating Segment Data for the Three Months Ended July 31, 2016 and 2015 (in thousands):

 

 

Net Sales

 

 

2016

 

 

2015

 

Wholesale:

 

 

 

 

 

 

 

Luxury brands category

$

46,643

 

 

$

52,109

 

Licensed brands category

 

61,571

 

 

 

74,374

 

After-sales service and all other

 

2,997

 

 

 

3,272

 

Total Wholesale

 

111,211

 

 

 

129,755

 

Retail

 

16,875

 

 

 

15,814

 

Consolidated total

$

128,086

 

 

$

145,569

 

 

 

Operating Income

 

 

2016

 

 

2015

 

Wholesale

$

6,633

 

 

$

14,869

 

Retail

 

3,458

 

 

 

3,365

 

Consolidated total

$

10,091

 

 

$

18,234

 

 

Operating Segment Data for the Six Months Ended July 31, 2016 and 2015 (in thousands):

 

 

Net Sales

 

 

2016

 

 

2015

 

Wholesale:

 

 

 

 

 

 

 

Luxury brands category

$

88,679

 

 

$

97,012

 

Licensed brands category

 

118,411

 

 

 

135,216

 

After-sales service and all other

 

6,079

 

 

 

7,124

 

Total Wholesale

 

213,169

 

 

 

239,352

 

Retail

 

28,980

 

 

 

26,678

 

Consolidated total

$

242,149

 

 

$

266,030

 

 

 

Operating Income

 

 

2016

 

 

2015

 

Wholesale

$

11,201

 

 

$

20,794

 

Retail

 

4,268

 

 

 

4,315

 

Consolidated total

$

15,469

 

 

$

25,109

 

 

 

Total Assets

 

 

July 31,

2016

 

  

January 31,

2016

 

  

July 31,

2015

 

Wholesale

$

575,903

 

 

$

562,547

 

 

$

568,680

 

Retail

 

22,833

 

 

 

22,623

 

 

 

21,331

 

Consolidated total

$

598,736

 

 

$

585,170

 

 

$

590,011

 

 

Geographic Location Data for the Three Months Ended July 31, 2016 and 2015 (in thousands):

 

 

Net Sales

 

  

Operating (Loss) / Income

 

 

2016

 

  

2015

 

  

2016

 

  

2015

 

United States (1)

$

66,823

 

 

$

78,772

 

 

$

(392

)

 

$

7,948

 

International (2)

 

61,263

 

 

 

66,797

 

 

 

10,483

 

 

 

10,286

 

Consolidated total

$

128,086

 

 

$

145,569

 

 

$

10,091

 

 

$

18,234

 

 

United States and International net sales are net of intercompany sales of $72.4 million and $76.7 million for the three months ended July 31, 2016 and 2015, respectively.

Geographic Location Data for the Six Months Ended July 31, 2016 and 2015 (in thousands):

 

 

Net Sales

 

  

Operating (Loss) / Income

 

 

2016

 

  

2015

 

  

2016

 

  

2015

 

United States (1)

$

126,880

 

 

$

143,356

 

 

$

(1,785

)

 

$

10,377

 

International (2)

 

115,269

 

 

 

122,674

 

 

 

17,254

 

 

 

14,732

 

Consolidated total

$

242,149

 

 

$

266,030

 

 

$

15,469

 

 

$

25,109

 

 

United States and International net sales are net of intercompany sales of $155.9 million and $158.2 million for the six months ended July 31, 2016 and 2015, respectively.

(1)

The United States operating loss included $10.0 million and operating income included $9.5 million of unallocated corporate expenses for the three months ended July 31, 2016 and 2015, respectively. The United States operating loss included $18.7 million and operating income included $16.6 million of unallocated corporate expenses for the six months ended July 31, 2016 and 2015, respectively.

(2)

The International operating income included $9.4 million and $10.9 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended July 31, 2016 and 2015, respectively. The International operating income included $16.5 million and $19.7 million of certain intercompany profits related to the Company’s supply chain operations for the six months ended July 31, 2016 and 2015, respectively. 

 

 

Total Assets

 

 

July 31,

2016

 

  

January 31,

2016

 

  

July 31,

2015

 

United States

$

221,081

 

 

$

215,053

 

 

$

230,209

 

International

 

377,655

 

 

 

370,117

 

 

 

359,802

 

Consolidated total

$

598,736

 

 

$

585,170

 

 

$

590,011

 

 

 

Property, Plant and Equipment, Net

 

 

July 31,

2016

 

  

January 31,

2016

 

  

July 31,

2015

 

United States

$

21,686

 

 

$

24,517

 

 

$

25,052

 

International

 

14,040

 

 

 

14,036

 

 

 

17,671

 

Consolidated total

$

35,726

 

 

$

38,553

 

 

$

42,723