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Segment and Geographic Information
 6 Months Ended
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