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Segment and Geographic Information | 6 Months Ended
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Jul. 31, 2025
Segment Reporting [Abstract] |
Segment and Geographic Information | NOTE 16 – 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. In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 “Improvements to Reportable Segment Disclosures” which requires expanded disclosures about an entity’s reportable segments, including more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how an entity’s chief operating decision maker (“CODM”) uses reported segment profit or loss information in assessing segment performance and allocating resources. The Company adopted this new guidance for the fiscal year ended January 31, 2025, and on a retrospective basis for all periods presented. This ASU does not change how an entity identifies its operating segments. 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 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’s CODM evaluates operating results based on gross profit, defined as net sales less cost of sales, and operating income, defined as gross profit less selling, general and administrative expenses. The CODM uses gross profit and operating income in the budgeting and forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for gross profit and operating income for evaluating performance of the segments and making decisions about allocating capital and other resources to each segment. 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), Asia and the Middle East accounted for 33.5%, 11.6%, 6.8% and 5.2%, respectively, of the Company’s total net sales for the three months ended July 31, 2025. For the three months ended July 31, 2024, the Company’s International operations in Europe, Asia, the Americas (excluding the United States) and the Middle East accounted for 29.8%, 9.7%, 9.1% and 6.4%, respectively, of the Company’s total net sales. The Company’s International operations in Europe, the Americas (excluding the United States), Asia and the Middle East accounted for 33.4%, 11.3%, 6.6% and 6.4%, respectively, of the Company’s total net sales for the six months ended July 31, 2025. For the six months ended July 31, 2024, the Company’s International operations in Europe, the Americas (excluding the United States), Asia and the Middle East accounted for 31.1%, 9.6%, 8.7% and 7.3%, respectively, of the Company’s total net sales. Operating Segment Data for the Three Months Ended July 31, 2025 and 2024 (in thousands):
|  | Net Sales |
|  | 2025 |  |  | 2024 |
|  |  |  |  | (As Restated) |
Watch and Accessory Brands: |  |  |  |  |  |
Owned brands category |  | $ | 42,120 |  |  | $ | 45,364 |
Licensed brands category |  |  | 92,419 |  |  |  | 84,389 |
After-sales service and all other |  |  | 1,138 |  |  |  | 1,858 |
Total Watch and Accessory Brands |  |  | 135,677 |  |  |  | 131,611 |
Company Stores |  |  | 26,152 |  |  |  | 25,389 |
Consolidated total |  | $ | 161,829 |  |  | $ | 157,000 |
|  | Watch and Accessory Brands |  | Company Stores |  | Consolidated Total |  |  | Watch and Accessory Brands |  | Company Stores |  | Consolidated Total |
|  | 2025 |  | 2025 |  | 2025 |  |  | 2024 |  | 2024 |  | 2024 |
|  |  |  |  |  |  |  |  | (As Restated) |  |  |  | (As Restated) |
Net sales |  | $ | 135,677 |  | $ | 26,152 |  | $ | 161,829 |  |  | $ | 131,611 |  | $ | 25,389 |  | $ | 157,000 |
Cost of sales |  |  | 63,831 |  |  | 10,433 |  |  | 74,264 |  |  |  | 61,478 |  |  | 10,270 |  |  | 71,748 |
Gross profit |  |  | 71,846 |  |  | 15,719 |  |  | 87,565 |  |  |  | 70,133 |  |  | 15,119 |  |  | 85,252 |
Selling, general and administrative |  |  | 72,015 |  |  | 11,543 |  |  | 83,558 |  |  |  | 71,171 |  |  | 11,439 |  |  | 82,610 |
Operating (loss)/income (1) (2) |  | $ | (169 | ) | $ | 4,176 |  | $ | 4,007 |  |  | $ | (1,038 | ) | $ | 3,680 |  | $ | 2,642 |
Other income, net |  |  |  |  |  |  | 1,202 |  |  |  |  |  |  |  | 1,877 |
Interest expense |  |  |  |  |  |  | (110 | ) |  |  |  |  |  |  | (110 | )
Income before income taxes |  |  |  |  |  | $ | 5,099 |  |  |  |  |  |  | $ | 4,409 |
Depreciation and amortization |  | $ | 1,825 |  | $ | 552 |  | $ | 2,377 |  |  | $ | 1,752 |  | $ | 542 |  | $ | 2,294 |
(1) The operating loss in the Watch and Accessory Brands Segment included $10.7 million and $5.5 million of unallocated corporate expenses for the three months ended July 31, 2025 and 2024, respectively, and $14.6 million and $14.1 million of certain intercompany profits related to the Company's supply chain operations for the three months ended July 31, 2025 and 2024, respectively. (2) The operating loss in the Watch and Accessory Brands segment for the three months ended July 31, 2025, included a pre-tax charge of $0.9 million related to the Company's cost-savings initiative and a pre-tax charge of $2.1 million of professional fees related to the investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary. Operating Segment Data as of and for the Six Months Ended July 31, 2025 and 2024 (in thousands):
|  | Net Sales |
|  | 2025 |  |  | 2024 |
Watch and Accessory Brands: |  |  |  |  | (As Restated) |
Owned brands category |  | $ | 75,252 |  |  | $ | 85,303 |
Licensed brands category |  |  | 172,662 |  |  |  | 158,464 |
After-sales service and all other |  |  | 2,565 |  |  |  | 4,956 |
Total Watch and Accessory Brands |  |  | 250,479 |  |  |  | 248,723 |
Company Stores |  |  | 43,119 |  |  |  | 42,656 |
Consolidated total |  | $ | 293,598 |  |  | $ | 291,379 |
|  | Watch and Accessory Brands |  | Company Stores |  | Consolidated Total |  |  | Watch and Accessory Brands |  | Company Stores |  | Consolidated Total |
|  | 2025 |  | 2025 |  | 2025 |  |  | 2024 |  | 2024 |  | 2024 |
|  |  |  |  |  |  |  |  | (As Restated) |  |  |  | (As Restated) |
Net sales |  | $ | 250,479 |  | $ | 43,119 |  | $ | 293,598 |  |  | $ | 248,723 |  | $ | 42,656 |  | $ | 291,379 |
Cost of sales |  |  | 117,789 |  |  | 16,894 |  |  | 134,683 |  |  |  | 116,558 |  |  | 16,649 |  |  | 133,207 |
Gross profit |  |  | 132,690 |  |  | 26,225 |  |  | 158,915 |  |  |  | 132,165 |  |  | 26,007 |  |  | 158,172 |
Selling, general and administrative |  |  | 132,868 |  |  | 21,749 |  |  | 154,617 |  |  |  | 131,543 |  |  | 21,869 |  |  | 153,412 |
Operating (loss)/income (1) (2) |  | $ | (178 | ) | $ | 4,476 |  | $ | 4,298 |  |  | $ | 622 |  | $ | 4,138 |  | $ | 4,760 |
Other income, net |  |  |  |  |  |  | 2,962 |  |  |  |  |  |  |  | 4,049 |
Interest expense |  |  |  |  |  |  | (221 | ) |  |  |  |  |  |  | (228 | )
Income before income taxes |  |  |  |  |  | $ | 7,039 |  |  |  |  |  |  | $ | 8,581 |
Depreciation and amortization |  | $ | 3,560 |  | $ | 1,097 |  | $ | 4,657 |  |  | $ | 3,475 |  | $ | 1,107 |  | $ | 4,582 |
(1) The operating (loss)/income in the Watch and Accessory Brands Segment included $18.7 million and $15.0 million of unallocated corporate expenses for the six months ended July 31, 2025 and 2024, respectively, and $28.6 million and $28.3 million of certain intercompany profits related to the Company's supply chain operations for the six months ended July 31, 2025 and 2024, respectively. (2) The operating loss in the Watch and Accessory Brands segment for the six months ended July 31, 2025, included a pre-tax charge of $1.5 million related to the Company's cost-savings initiative and a pre-tax charge of $2.1 million of professional fees related to the investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary.
|  | Total Assets |  |  | Capital Expenditures |
|  | July 31, 2025 |  |  | January 31, 2025 |  |  | July 31, 2024 |  |  | July 31, 2025 |  |  | July 31, 2024 |
|  |  |  |  |  |  |  | (As Restated) |  |  |  |  |  |  |
Watch and Accessory Brands |  | $ | 687,465 |  |  | $ | 668,403 |  |  | $ | 683,021 |  |  | $ | 1,896 |  |  | $ | 2,494 |
Company Stores |  |  | 61,254 |  |  |  | 60,828 |  |  |  | 59,459 |  |  |  | 930 |  |  |  | 1,419 |
Consolidated total |  | $ | 748,719 |  |  | $ | 729,231 |  |  | $ | 742,480 |  |  | $ | 2,826 |  |  | $ | 3,913 |
Geographic Location Data for the Three Months Ended July 31, 2025 and 2024 (in thousands):
|  | Net Sales |  |
|  | 2025 |  |  | 2024 |  |
|  |  |  |  | (As Restated) |  |
United States |  | $ | 69,429 |  |  | $ | 70,575 |  |
International |  |  | 92,400 |  |  |  | 86,425 |  |
Consolidated total |  | $ | 161,829 |  |  | $ | 157,000 |  |
United States and International net sales are net of intercompany sales of $82.1 million and $73.5 million for the three months ended July 31, 2025 and 2024, respectively. Geographic Location Data as of and for the Six Months Ended July 31, 2025 and 2024 (in thousands):
|  | Net Sales |  |
|  | 2025 |  |  | 2024 |  |
|  |  |  |  | (As Restated) |  |
United States |  | $ | 124,129 |  |  | $ | 126,139 |  |
International |  |  | 169,469 |  |  |  | 165,240 |  |
Consolidated total |  | $ | 293,598 |  |  | $ | 291,379 |  |
United States and International net sales are net of intercompany sales of $156.1 million and $144.0 million for the six months ended July 31, 2025 and 2024, respectively.
|  | Long-Lived Assets |
|  | July 31, 2025 |  |  | January 31, 2025 |  |  | July 31, 2024 |
United States |  | $ | 69,596 |  |  | $ | 75,160 |  |  | $ | 74,440 |
International |  |  | 26,730 |  |  |  | 30,769 |  |  |  | 31,225 |
Consolidated total |  | $ | 96,326 |  |  | $ | 105,929 |  |  | $ | 105,665 |
|  | Operating Right-of-Use Assets |
|  | July 31, 2025 |  |  | January 31, 2025 |  |  | July 31, 2024 |
United States |  | $ | 56,697 |  |  | $ | 61,916 |  |  | $ | 61,351 |
International |  |  | 20,433 |  |  |  | 24,093 |  |  |  | 23,999 |
Consolidated total |  | $ | 77,130 |  |  | $ | 86,009 |  |  | $ | 85,350 |
|  | Property, Plant and Equipment, Net |
|  | July 31, 2025 |  |  | January 31, 2025 |  |  | July 31, 2024 |
United States |  | $ | 12,899 |  |  | $ | 13,244 |  |  | $ | 13,089 |
International |  |  | 6,297 |  |  |  | 6,676 |  |  |  | 7,226 |
Consolidated total |  | $ | 19,196 |  |  | $ | 19,920 |  |  | $ | 20,315 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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