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Segment Information
 6 Months Ended
Jul. 02, 2011
Segment Information  
Segment Information

5. SEGMENT INFORMATION

The Company manages its business primarily on a geographic basis. The Company's reportable operating segments are comprised of North America Wholesale, Europe Wholesale, Asia Pacific Wholesale and Direct to Consumer. The North America Wholesale, Europe Wholesale and Asia Pacific Wholesale reportable segments do not include activities related to the Direct to Consumer segment. The North America Wholesale segment primarily includes sales to wholesale or distributor customers based in Canada, Mexico, the United States and countries in South America. The Europe Wholesale segment primarily includes sales to wholesale or distributor customers based in European countries, the Middle East and Africa. The Asia Pacific Wholesale segment primarily includes sales to wholesale or distributor customers based in Australia, China (including the Company's assembly and procurement operations), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. The Direct to Consumer segment includes Company-owned retail stores, e-commerce sales and catalog activities. Each reportable operating segment provides similar products and services.

The Company evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are generally based on the location of the customers. Operating income for each segment includes net sales to third-parties, related cost of sales and operating expenses directly attributable to the segment. General corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management and amounts related to intercompany eliminations are not allocated to the various segments. Intercompany sales of products between segments are referred to as intersegment items.

 

Summary information by operating segment is as follows (in thousands):

 

     For the 13 Weeks Ended
July 2, 2011		     For the 13 Weeks Ended
July 3, 2010		  
     Net Sales     Operating Income
(Loss)		     Net Sales     Operating Income
(Loss)		  

North America Wholesale:

         

External customers

    $ 213,064      $ 56,172      $ 155,868      $ 40,687   

Intersegment

      33,372          15,592     

Europe Wholesale:

         

External customers

      141,790        29,403        107,698        28,803   

Intersegment

      29,597          13,663     

Asia Pacific Wholesale:

         

External customers

      67,856        23,301        46,446        9,607   

Intersegment

      148,374          140,453     

Direct to Consumer

      133,951        14,756        102,548        11,320   

Intersegment items

      (211,343 )        (169,708 )   

Corporate

        (37,370 )        (26,071 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 556,661      $ 86,262      $ 412,560      $ 64,346   
  

 

 

    

 

 

    

 

 

    

 

 

  
     For the 26 Weeks Ended
July 2, 2011		     For the 26 Weeks Ended
July 3, 2010		  
     Net Sales     Operating Income
(Loss)		     Net Sales     Operating Income
(Loss)		  

North America Wholesale:

         

External customers

    $ 419,800      $ 106,504      $ 309,664      $ 70,534   

Intersegment

      63,791          52,285     

Europe Wholesale:

         

External customers

      293,620        67,515        220,168        52,218   

Intersegment

      64,730          26,909     

Asia Pacific Wholesale:

         

External customers

      132,071        45,549        85,150        26,443   

Intersegment

      284,057          235,348     

Direct to Consumer

      248,144        22,907        190,807        16,208   

Intersegment items

      (412,578 )        (314,542 )   

Corporate

        (63,657 )        (49,794 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 1,093,635      $ 178,818      $ 805,789      $ 115,609   
  

 

 

    

 

 

    

 

 

    

 

 

  

The following table shows revenue for each class of similar products in the periods presented (in thousands):

 

     For the 13 Weeks Ended      For the 26 Weeks Ended  
     July 2 ,2011      July 3, 2010      July 2 ,2011      July 3, 2010  

Watches

    $ 399,627       $ 287,821       $ 772,336       $ 542,713   

Leathers

      91,690         68,009         182,239         142,772   

Jewelry

      38,483         32,191         80,649         66,194   

Other

      26,861         24,539         58,411         54,110   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 556,661       $ 412,560       $ 1,093,635       $ 805,789