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Segment and Geographic Information | 6 Months Ended
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Jul. 31, 2018
Segment Reporting [Abstract] |
Segment and Geographic Information | NOTE 5 – 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 owned 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 32.1%, 11.2%, 8.8% and 6.9%, respectively, of the Company’s total net sales for the three months ended July 31, 2018. For the three months ended July 31, 2017, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 26.4%, 10.2%, 9.3% and 6.1%, respectively, of the Company’s total net sales. The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 32.3%, 11.0%, 9.6% and 7.4%, respectively, of the Company’s total net sales for the six months ended July 31, 2018. For the six months ended July 31, 2017, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 27.8%, 10.4%, 8.9% and 6.1%, respectively, of the Company’s total net sales. Operating Segment Data for the Three Months Ended July 31, 2018 and 2017 (in thousands):
|  | Net Sales |
|  | 2018 |  |  | 2017 |
Wholesale: |  |  |  |  |  |  |  |
Owned brands category |  | $ | 51,533 |  |  | $ | 46,339 |
Licensed brands category |  |  | 69,722 |  |  |  | 62,529 |
After-sales service and all other |  |  | 1,827 |  |  |  | 2,150 |
Total Wholesale |  |  | 123,082 |  |  |  | 111,018 |
Retail |  |  | 21,011 |  |  |  | 17,763 |
Consolidated total |  | $ | 144,093 |  |  | $ | 128,781 |
|  | Operating Income (3) (4) |
|  | 2018 |  |  | 2017 |
Wholesale |  | $ | 8,202 |  |  | $ | 4,797 |
Retail |  |  | 4,658 |  |  |  | 3,520 |
Consolidated total |  | $ | 12,860 |  |  | $ | 8,317 |
Operating Segment Data for the Six Months Ended July 31, 2018 and 2017 (in thousands):
|  | Net Sales |
|  | 2018 |  |  | 2017 |
Wholesale: |  |  |  |  |  |  |  |
Owned brands category |  | $ | 93,116 |  |  | $ | 79,481 |
Licensed brands category |  |  | 135,573 |  |  |  | 113,899 |
After-sales service and all other |  |  | 6,493 |  |  |  | 4,798 |
Total Wholesale |  |  | 235,182 |  |  |  | 198,178 |
Retail |  |  | 36,060 |  |  |  | 29,868 |
Consolidated total |  | $ | 271,242 |  |  | $ | 228,046 |
|  | Operating Income (3) (4) |
|  | 2018 |  |  | 2017 |
Wholesale |  | $ | 14,569 |  |  | $ | 309 |
Retail |  |  | 6,430 |  |  |  | 4,360 |
Consolidated total |  | $ | 20,999 |  |  | $ | 4,669 |
|  | Total Assets |
|  | July 31, 2018 |  |  | January 31, 2018 |  |  | July 31, 2017 |
Wholesale |  | $ | 601,788 |  |  | $ | 621,965 |  |  | $ | 609,893 |
Retail |  |  | 25,460 |  |  |  | 23,415 |  |  |  | 24,180 |
Consolidated total |  | $ | 627,248 |  |  | $ | 645,380 |  |  | $ | 634,073 |
Geographic Location Data for the Three Months Ended July 31, 2018 and 2017 (in thousands):
|  | Net Sales |  |  | Operating Income / (Loss) (3) (4) |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
United States (1) |  | $ | 59,020 |  |  | $ | 61,845 |  |  | $ | (2,209 | ) |  | $ | 1,401 |
International (2) |  |  | 85,073 |  |  |  | 66,936 |  |  |  | 15,069 |  |  |  | 6,916 |
Consolidated total |  | $ | 144,093 |  |  | $ | 128,781 |  |  | $ | 12,860 |  |  | $ | 8,317 |
United States and International net sales are net of intercompany sales of $76.5 million and $62.3 million for the three months ended July 31, 2018 and 2017, respectively. Geographic Location Data for the Six Months Ended July 31, 2018 and 2017 (in thousands):
|  | Net Sales |  |  | Operating Income / (Loss) (3) (4) |
|  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2017 |
United States (1) |  | $ | 107,862 |  |  | $ | 106,640 |  |  | $ | (8,191 | ) |  | $ | (8,380 | )
International (2) |  |  | 163,380 |  |  |  | 121,406 |  |  |  | 29,190 |  |  |  | 13,049 |
Consolidated total |  | $ | 271,242 |  |  | $ | 228,046 |  |  | $ | 20,999 |  |  | $ | 4,669 |
United States and International net sales are net of intercompany sales of $141.1 million and $124.6 million for the six months ended July 31, 2018 and 2017, respectively.
(1) | The United States operating (loss) included $10.6 million and $7.2 million of unallocated corporate expenses for the three months ended July 31, 2018 and 2017, respectively. The United States operating loss included $20.7 million and $13.4 million of unallocated corporate expenses for the six months ended July 31, 2018 and 2017, respectively.
(2) | The International operating income included $11.3 million and $7.9 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended July 31, 2018 and 2017, respectively. The International operating income included $22.3 million and $15.5 million of certain intercompany profits related to the Company’s supply chain operations for the six months ended July 31, 2018 and 2017, respectively.
(3) | In the International location of the Wholesale segment, for the three months ended July 31,2017, operating income included a pre-tax charge of $0.1 million, as a result of the Company’s cost savings initiatives. In the United States and International locations of the Wholesale segment, for the six months ended July 31, 2017, operating (loss) / income included a pre-tax charge of $3.8 million and $2.6 million, respectively, as a result of the Company’s cost savings initiatives.
(4) | In the International locations of the Wholesale segment, for the three months and six months ended July 31, 2018, operating income included $0.7 and $1.5 million, of expenses primarily related to the amortization of acquired intangible assets, as a result of the Company’s acquisition of the Olivia Burton brand. In addition, in the United Sates locations of the Wholesale segment, for the three months and six months ended July 31, 2018, operating income included $1.0 million, of expenses primarily associated with the pending acquisition of MVMT. In the United States and International locations of the Wholesale segment, for the three months and the six months ended July 31, 2017, operating income / (loss) included a pre-tax charge of $0.2 and $4.3 million, respectively, of expenses related to transaction costs and adjustments in acquisition accounting, as a result of the Company’s acquisition of the Olivia Burton brand.
|  | Total Assets |
|  | July 31, 2018 |  |  | January 31, 2018 |  |  | July 31, 2017 |
United States |  | $ | 206,346 |  |  | $ | 188,346 |  |  | $ | 216,929 |
International |  |  | 420,902 |  |  |  | 457,034 |  |  |  | 417,144 |
Consolidated total |  | $ | 627,248 |  |  | $ | 645,380 |  |  | $ | 634,073 |
|  | Property, Plant and Equipment, Net |
|  | July 31, 2018 |  |  | January 31, 2018 |  |  | July 31, 2017 |
United States |  | $ | 16,771 |  |  | $ | 16,570 |  |  | $ | 17,521 |
International |  |  | 7,762 |  |  |  | 8,101 |  |  |  | 13,891 |
Consolidated total |  | $ | 24,533 |  |  | $ | 24,671 |  |  | $ | 31,412 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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