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Segment and Geographic Information
 9 Months Ended
Oct. 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 following table summarizes the Company's net sales in the International locations by region as a percentage of the Company's total net sales for the three and nine months ended October 31, 2025 and 2024.

 

 

Three Months Ended October 31,

 

 

Nine Months Ended October 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

(As Restated)

 

 

 

 

 

(As Restated)

 

Europe

 

 

38.1

%

 

 

34.0

%

 

 

35.3

%

 

 

32.2

%

Americas (excluding the United States)

 

 

7.9

%

 

 

8.9

%

 

 

10.0

%

 

 

9.4

%

Asia

 

 

6.9

%

 

 

10.0

%

 

 

6.7

%

 

 

9.2

%

Middle East

 

 

6.2

%

 

 

7.7

%

 

 

6.3

%

 

 

7.4

%

Total International Operations

 

 

59.1

%

 

 

60.6

%

 

 

58.3

%

 

 

58.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Segment Data for the Three Months Ended October 31, 2025 and 2024 (in thousands):

 

 

 

Net Sales

 

 

 

2025

 

 

2024

 

 

 

 

 

 

(As Restated)

 

Watch and Accessory Brands:

 

 

 

 

 

 

Owned brands category

 

$

46,016

 

 

$

50,269

 

Licensed brands category

 

 

116,356

 

 

 

109,319

 

After-sales service and all other

 

 

343

 

 

 

72

 

Total Watch and Accessory Brands

 

 

162,715

 

 

 

159,660

 

Company Stores

 

 

23,417

 

 

 

20,864

 

Consolidated total

 

$

186,132

 

 

$

180,524

 

 

 

 

 

 

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

 

$

162,715

 

$

23,417

 

$

186,132

 

 

$

159,660

 

$

20,864

 

$

180,524

 

Cost of sales

 

 

75,540

 

 

9,536

 

 

85,076

 

 

 

75,300

 

 

8,594

 

 

83,894

 

Gross profit

 

 

87,175

 

 

13,881

 

 

101,056

 

 

 

84,360

 

 

12,270

 

 

96,630

 

Selling, general and administrative

 

 

77,980

 

 

11,351

 

 

89,331

 

 

 

79,605

 

 

10,992

 

 

90,597

 

Operating income (1) (2)

 

$

9,195

 

$

2,530

 

$

11,725

 

 

$

4,755

 

$

1,278

 

$

6,033

 

Other income, net

 

 

 

 

 

 

1,347

 

 

 

 

 

 

 

1,522

 

Interest expense

 

 

 

 

 

 

(136

)

 

 

 

 

 

 

(144

)

Income before income taxes

 

 

 

 

 

$

12,936

 

 

 

 

 

 

$

7,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

1,828

 

$

554

 

$

2,382

 

 

$

1,804

 

$

574

 

$

2,378

 

 

 

(1)
The operating income in the Watch and Accessory Brands Segment included $16.6 million and $11.6 million of unallocated corporate expenses for the three months ended October 31, 2025 and 2024, respectively, and $20.0 million and $20.5 million of certain intercompany profits related to the Company's supply chain operations for the three months ended October 31, 2025 and 2024, respectively.
(2)
The operating income in the Watch and Accessory Brands segment for the three months ended October 31, 2025, included a pre-tax charge of $0.9 million of costs related to the investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary. The operating income in the Watch and Accessory Brands segment for the three months ended October 31, 2024, included a pre-tax charge of $2.7 million related to the Company's cost-savings initiative.

Operating Segment Data as of and for the Nine Months Ended October 31, 2025 and 2024 (in thousands):

 

 

 

Net Sales

 

 

 

2025

 

 

2024

 

Watch and Accessory Brands:

 

 

 

 

(As Restated)

 

Owned brands category

 

$

121,268

 

 

$

135,572

 

Licensed brands category

 

 

289,018

 

 

 

267,783

 

After-sales service and all other

 

 

2,908

 

 

 

5,028

 

Total Watch and Accessory Brands

 

 

413,194

 

 

 

408,383

 

Company Stores

 

 

66,536

 

 

 

63,520

 

Consolidated total

 

$

479,730

 

 

$

471,903

 

 

 

 

 

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

 

$

413,194

 

$

66,536

 

$

479,730

 

 

$

408,383

 

$

63,520

 

$

471,903

 

Cost of sales

 

 

193,329

 

 

26,430

 

 

219,759

 

 

 

191,858

 

 

25,243

 

 

217,101

 

Gross profit

 

 

219,865

 

 

40,106

 

 

259,971

 

 

 

216,525

 

 

38,277

 

 

254,802

 

Selling, general and administrative

 

 

210,848

 

 

33,100

 

 

243,948

 

 

 

211,148

 

 

32,861

 

 

244,009

 

Operating income (1) (2)

 

$

9,017

 

$

7,006

 

$

16,023

 

 

$

5,377

 

$

5,416

 

$

10,793

 

Other income, net

 

 

 

 

 

 

4,309

 

 

 

 

 

 

 

5,571

 

Interest expense

 

 

 

 

 

 

(357

)

 

 

 

 

 

 

(372

)

Income before income taxes

 

 

 

 

 

$

19,975

 

 

 

 

 

 

$

15,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

5,388

 

$

1,651

 

$

7,039

 

 

$

5,279

 

$

1,681

 

$

6,960

 

 

 

(1)
The operating income in the Watch and Accessory Brands Segment included $35.3 million and $26.6 million of unallocated corporate expenses for the nine months ended October 31, 2025 and 2024, respectively, and $48.6 million and $48.8 million of certain intercompany profits related to the Company's supply chain operations for the nine months ended October 31, 2025 and 2024, respectively.
(2)
The operating income in the Watch and Accessory Brands segment for the nine months ended October 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 $3.0 million of costs related to the investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary. The operating income in the Watch and Accessory Brands segment for the nine months ended October 31, 2024, included a pre-tax charge of $2.7 million related to the Company's cost-savings initiative.

 

 

 

Total Assets

 

 

Capital Expenditures

 

 

 

October 31,
 2025

 

 

January 31,
 2025

 

 

October 31,
 2024

 

 

October 31,
 2025

 

 

October 31,
 2024

 

 

 

 

 

 

 

 

 

(As Restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Watch and Accessory Brands

 

$

693,543

 

 

$

668,403

 

 

$

681,664

 

 

$

2,282

 

 

$

4,262

 

Company Stores

 

 

58,356

 

 

 

60,828

 

 

 

65,488

 

 

 

1,230

 

 

 

2,106

 

Consolidated total

 

$

751,899

 

 

$

729,231

 

 

$

747,152

 

 

$

3,512

 

 

$

6,368

 

 

 

Geographic Location Data for the Three Months Ended October 31, 2025 and 2024 (in thousands):

 

 

 

Net Sales

 

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

(As Restated)

 

 

United States

 

$

76,052

 

 

$

71,147

 

 

International

 

 

110,080

 

 

 

109,377

 

 

Consolidated total

 

$

186,132

 

 

$

180,524

 

 

United States and International net sales are net of intercompany sales of $68.1 million and $82.5 million for the three months ended October 31, 2025 and 2024, respectively.

 

Geographic Location Data as of and for the Nine Months Ended October 31, 2025 and 2024 (in thousands):

 

 

 

 

Net Sales

 

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

(As Restated)

 

 

United States

 

$

200,181

 

 

$

197,286

 

 

International

 

 

279,549

 

 

 

274,617

 

 

Consolidated total

 

$

479,730

 

 

$

471,903

 

 

 

United States and International net sales are net of intercompany sales of $224.2 million and $226.5 million for the nine months ended October 31, 2025 and 2024, respectively.

 

Long-Lived Assets consist of Operating Right-of-Use Assets and Property, Plant and Equipment, Net.

 

 

 

 

Long-Lived Assets

 

 

 

October 31,
 2025

 

 

January 31,
 2025

 

 

October 31,
 2024

 

United States

 

$

66,133

 

 

$

75,160

 

 

$

78,200

 

International

 

 

24,598

 

 

 

30,769

 

 

 

31,172

 

Consolidated total

 

$

90,731

 

 

$

105,929

 

 

$

109,372

 

 

 

 

Operating Right-of-Use Assets

 

 

 

October 31,
 2025

 

 

January 31,
 2025

 

 

October 31,
 2024

 

United States

 

$

53,717

 

 

$

61,916

 

 

$

64,797

 

International

 

 

18,799

 

 

 

24,093

 

 

 

24,095

 

Consolidated total

 

$

72,516

 

 

$

86,009

 

 

$

88,892

 

 

 

 

Property, Plant and Equipment, Net

 

 

 

October 31,
 2025

 

 

January 31,
 2025

 

 

October 31,
 2024

 

United States

 

$

12,416

 

 

$

13,244

 

 

$

13,403

 

International

 

 

5,799

 

 

 

6,676

 

 

 

7,077

 

Consolidated total

 

$

18,215

 

 

$

19,920

 

 

$

20,480