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Segment and Geographic Information | 6 Months Ended
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Jul. 31, 2021
Segment Reporting [Abstract] |
Segment and Geographic Information | NOTE 18 – SEGMENT AND GEOGRAPHIC INFORMATION The Company conducts its business in two operating segments: Watch and Accessory Brands and Company Stores. The Company’s Watch and Accessory Brands segment includes the designing, manufacturing and distribution of watches and, to a lesser extent, jewelry and other accessories, of owned and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Company Stores segment includes the Company’s retail outlet business. The Chief Executive Officer of the Company is the chief operating decision maker (“CODM”) and regularly reviews operating results for each of the two operating segments to assess performance and makes operating decisions about the allocation of the Company’s resources. 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 Middle East, Asia and the Americas (excluding the United States) accounted for 33.4%, 8.2%, 4.8% and 4.4%, respectively, of the Company’s total net sales for the three months ended July 31, 2021. For the three months ended July 31, 2020, the Company’s International operations in Europe, the Middle East, Asia and the Americas (excluding the United States) accounted for 39.6%, 11.3%, 7.1% and 2.7%, 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 31.4%, 8.3%, 6.3% and 5.0%, respectively, of the Company’s total net sales for the six months ended July 31, 2021. For the six months ended July 31, 2020, the Company’s International operations in Europe, the Middle East, Asia and the Americas (excluding the United States) accounted for 38.8%, 8.0%, 7.7% and 5.5%, respectively, of the Company’s total net sales. Operating Segment Data for the Three Months Ended July 31, 2021 and 2020 (in thousands):
|  | Net Sales |
|  | 2021 |  |  | 2020 |
Watch and Accessory Brands: |  |  |  |  |  |
Owned brands category |  | $ | 60,902 |  |  | $ | 31,622 |
Licensed brands category |  |  | 84,077 |  |  |  | 46,414 |
After-sales service and all other |  |  | 1,200 |  |  |  | 153 |
Total Watch and Accessory Brands |  |  | 146,179 |  |  |  | 78,189 |
Company Stores |  |  | 27,695 |  |  |  | 10,349 |
Consolidated total |  | $ | 173,874 |  |  | $ | 88,538 |
|  | Operating Income/(Loss) (3)(5) |
|  | 2021 |  |  | 2020 |
Watch and Accessory Brands |  | $ | 15,718 |  |  | $ | (9,945 | )
Company Stores |  |  | 8,915 |  |  |  | 1,029 |
Consolidated total |  | $ | 24,633 |  |  | $ | (8,916 | )
Operating Segment Data as of and for the Six Months Ended July 31, 2021 and 2020 (in thousands):
|  | Net Sales |
|  | 2021 |  |  | 2020 |
Watch and Accessory Brands: |  |  |  |  |  |
Owned brands category |  | $ | 109,273 |  |  | $ | 56,983 |
Licensed brands category |  |  | 151,703 |  |  |  | 82,098 |
After-sales service and all other |  |  | 1,482 |  |  |  | 2,394 |
Total Watch and Accessory Brands |  |  | 262,458 |  |  |  | 141,475 |
Company Stores |  |  | 46,214 |  |  |  | 16,729 |
Consolidated total |  | $ | 308,672 |  |  | $ | 158,204 |
|  | Operating Income/(Loss) (3)(4)(5) |
|  | 2021 |  |  | 2020 |
Watch and Accessory Brands |  | $ | 24,503 |  |  | $ | (189,566 | )
Company Stores |  |  | 13,386 |  |  |  | (1,513 | )
Consolidated total |  | $ | 37,889 |  |  | $ | (191,079 | )
|  | Total Assets |
|  | July 31, 2021 |  |  | January 31, 2021 |  |  | July 31, 2020 |
Watch and Accessory Brands |  | $ | 651,495 |  |  | $ | 659,681 |  |  | $ | 618,419 |
Company Stores |  |  | 59,403 |  |  |  | 59,576 |  |  |  | 61,270 |
Consolidated total |  | $ | 710,898 |  |  | $ | 719,257 |  |  | $ | 679,689 |
Geographic Location Data for the Three Months Ended July 31, 2021 and 2020 (in thousands):
|  | Net Sales |  |  | Operating Income/(Loss) (3)(5) |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
United States (1) |  | $ | 85,487 |  |  | $ | 34,766 |  |  | $ | 8,820 |  |  | $ | (14,319 | )
International (2) |  |  | 88,387 |  |  |  | 53,772 |  |  |  | 15,813 |  |  |  | 5,403 |
Consolidated total |  | $ | 173,874 |  |  | $ | 88,538 |  |  | $ | 24,633 |  |  | $ | (8,916 | )
United States and International net sales are net of intercompany sales of $90.7 million and $29.1 million for the three months ended July 31, 2021 and 2020, respectively. Geographic Location Data as of and for the Six Months Ended July 31, 2021 and 2020 (in thousands):
|  | Net Sales |  |  | Operating Income/(Loss) (3)(4)(5) |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
United States (1) |  | $ | 151,380 |  |  | $ | 63,300 |  |  | $ | 9,579 |  |  | $ | (134,309 | )
International (2) |  |  | 157,292 |  |  |  | 94,904 |  |  |  | 28,310 |  |  |  | (56,770 | )
Consolidated total |  | $ | 308,672 |  |  | $ | 158,204 |  |  | $ | 37,889 |  |  | $ | (191,079 | )
United States and International net sales are net of intercompany sales of $160.4 million and $71.9 million for the six months ended July 31, 2021 and 2020, respectively. (1) The United States operating income/(loss) included $13.0 million and $6.1 million of unallocated corporate expenses for the three months ended July 31, 2021 and 2020, respectively. The United States operating income/(loss) included $21.9 million and $12.1 million of unallocated corporate expenses for the six months ended July 31, 2021 and 2020, respectively. (2) The International operating income included $16.9 million and $11.2 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended July 31, 2021 and 2020, respectively. The International operating income/(loss) included $30.8 million and $22.3 million of certain intercompany profits related to the Company’s supply chain operations for the six months ended July 31, 2021 and 2020, respectively. (3) For the three months ended July 31, 2021 and 2020, and for the six months ended July 31, 2021 and 2020, in the United States locations of the Watch and Accessory Brands segment, operating income/(loss) included a charge of $0.1 million, $0.3 million, $0.2 million and $1.0 million, respectively, related to the amortization of intangible assets, deferred compensation and certain acquisition accounting adjustments associated with the MVMT brand. In addition, in the International locations of the Watch and Accessory Brands segment for the three months ended July 31, 2021 and 2020, and for the six months ended July 31, 2021 and 2020, operating income/(loss) included a charge of $0.7 million, $0.7 million, $1.4 and $1.4 million, respectively, related to the amortization of acquired intangible assets as a result of the Company’s acquisition of the Olivia Burton brand. (4) For the six months ended July 31, 2020, in the United States locations of the Watch and Accessory Brands segment, operating loss included a charge of $99.7 million, related to the impairment of goodwill and intangible assets associated with the MVMT brand. In addition, in the International locations of the Watch and Accessory Brands segment, for the six months ended July 31, 2020, operating loss included a charge of $56.2 million related to the impairment of goodwill associated with the Olivia Burton brand and City Time Joint Venture. (5) For the three months ended July 2020, in the United States locations and the International locations of the Watch and Accessory Brands segment, operating (loss)/income included a charge of $6.6 million and $0.8 million, respectively, related to the corporate initiatives that the Company took in response to the impact on its business due to the COVID-19 pandemic. For the six months ended July 2020, in the United States locations and the International locations of the Watch and Accessory Brands segment, operating loss included a charge of $11.3 million and $3.3 million, respectively, related to the corporate initiatives that the Company took in response to the impact on its business due to the COVID-19 pandemic.
|  | Total Assets |
|  | July 31, 2021 |  |  | January 31, 2021 |  |  | July 31, 2020 |
United States |  | $ | 350,187 |  |  | $ | 352,517 |  |  | $ | 313,411 |
International |  |  | 360,711 |  |  |  | 366,740 |  |  |  | 366,278 |
Consolidated total |  | $ | 710,898 |  |  | $ | 719,257 |  |  | $ | 679,689 |
|  | Property, Plant and Equipment, Net |
|  | July 31, 2021 |  |  | January 31, 2021 |  |  | July 31, 2020 |
United States |  | $ | 13,014 |  |  | $ | 14,792 |  |  | $ | 16,825 |
International |  |  | 6,642 |  |  |  | 7,557 |  |  |  | 9,063 |
Consolidated total |  | $ | 19,656 |  |  | $ | 22,349 |  |  | $ | 25,888 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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