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Segment and Geographic Information
 12 Months Ended
Jan. 31, 2017
Segment Reporting [Abstract]  
Segment and Geographic Information

NOTE 13 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance 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 non-U.S. Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 23.1%, 8.9%, 8.1% and 6.3%, respectively, of the Company’s total net sales for fiscal 2017. For fiscal 2016, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 21.2%, 10.5%, 7.4% and 6.1%, respectively, of the Company’s total net sales. For fiscal 2015, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.9%, 11.4%, 7.1% and 8.0%, 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 as of and for the Fiscal Year Ended January 31, (in thousands):

 

 

Net Sales (3)

 

 

2017

 

 

2016

 

 

2015

 

Wholesale:

 

 

 

 

 

 

 

 

 

 

 

Luxury brands category

$

205,396

 

 

$

219,012

 

 

$

212,684

 

Licensed brands category

 

265,137

 

 

 

297,227

 

 

 

294,316

 

After-sales service and all other

 

13,911

 

 

 

13,770

 

 

 

15,260

 

Total Wholesale

 

484,444

 

 

 

530,009

 

 

 

522,260

 

Retail

 

68,308

 

 

 

64,914

 

 

 

64,720

 

Consolidated total

$

552,752

 

 

$

594,923

 

 

$

586,980

 

 

 

Operating Income 
(1) (2) (4) (5)

 

 

2017

 

 

2016

 

 

2015

 

Wholesale

$

41,773

 

 

$

58,242

 

 

$

58,236

 

Retail

 

12,208

 

 

 

11,865

 

 

 

13,251

 

Consolidated total

$

53,981

 

 

$

70,107

 

 

$

71,487

 

 

 

Total Assets

 

 

Capital Expenditures

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2015

 

Wholesale

$

584,518

 

 

$

562,547

 

 

$

5,666

 

 

$

5,902

 

 

$

9,321

 

Retail

 

23,284

 

 

 

22,623

 

 

 

254

 

 

 

2,168

 

 

 

1,811

 

Consolidated total

$

607,802

 

 

$

585,170

 

 

$

5,920

 

 

$

8,070

 

 

$

11,132

 

 

 

Depreciation and Amortization

 

 

2017

 

 

2016

 

 

2015

 

Wholesale

$

9,875

 

 

$

11,561

 

 

$

11,053

 

Retail

 

1,632

 

 

 

1,595

 

 

 

1,416

 

Consolidated total

$

11,507

 

 

$

13,156

 

 

$

12,469

 

Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands):

 

 

Net Sales (3)

 

 

Operating Income 
(1) (2) (4) (5)

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

United States

$

296,311

 

 

$

326,206

 

 

$

320,425

 

 

$

16,917

 

 

$

29,867

 

 

$

18,811

 

International

 

256,441

 

 

 

268,717

 

 

 

266,555

 

 

 

37,064

 

 

 

40,240

 

 

 

52,676

 

Consolidated total

$

552,752

 

 

$

594,923

 

 

$

586,980

 

 

$

53,981

 

 

$

70,107

 

 

$

71,487

 

 

 

Total Assets

 

 

Property, Plant and Equipment, Net

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

United States

$

207,246

 

 

$

215,053

 

 

$

19,197

 

 

$

24,517

 

International

 

400,556

 

 

 

370,117

 

 

 

14,976

 

 

 

14,036

 

Consolidated total

$

607,802

 

 

$

585,170

 

 

$

34,173

 

 

$

38,553

 

(1)

Fiscal 2017 Wholesale and United States operating income included a pre-tax charge of $1.8 million, as a result of the immediate vesting of stock awards and certain other compensation related to the announcement of the retirement of Rick Coté, the Company’s former Vice Chairman and Chief Operating Officer, in fiscal 2017.

(2)

Fiscal 2016 Wholesale and United States and International operating income included a $4.0 million charge as a result of actions taken by the Company in fiscal 2016 to achieve greater operating efficiencies and streamline its operations.

(3)

The United States and International net sales are net of intercompany sales of $289.2 million, $309.1 million and $305.1 million for the fiscal years ended January 31, 2017, 2016 and 2015, respectively.

(4)

The United States operating income included $25.5 million, $27.0 million and $19.3 million of unallocated corporate expenses for the fiscal years ended January 31, 2017, 2016 and 2015, respectively.

(5)

The International operating income included $40.0 million, $44.5 million and $47.1 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2017, 2016 and 2015, respectively.