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Segment Information
9 Months Ended
Oct. 01, 2011
Segment Information [Abstract] 
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 was as follows (in thousands):

 

     For the 13 Weeks Ended
October 1, 2011		     For the 13 Weeks Ended
October 2, 2010		  
     Net Sales     Operating Income
(Loss)		     Net Sales     Operating Income
(Loss)		  

North America wholesale:

         

External customers

    $ 240,642      $ 58,116      $ 207,674      $ 55,737   

Intersegment

      40,163          34,822     

Europe wholesale:

         

External customers

      178,254        53,121        137,033        44,223   

Intersegment

      46,326          33,312     

Asia Pacific wholesale:

         

External customers

      78,602        28,957        60,929        24,594   

Intersegment

      213,738          182,805     

Direct to consumer

      145,412        18,579        118,189        14,951   

Intersegment items

      (300,227 )        (250,939 )   

Corporate

        (39,964 )        (28,235 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 642,910      $ 118,809      $ 523,825      $ 111,270   
  

 

 

    

 

 

    

 

 

    

 

 

  
     For the 39 Weeks Ended
October 1, 2011		     For the 39 Weeks Ended
October 2, 2010		  
     Net Sales     Operating Income
(Loss)		     Net Sales     Operating Income
(Loss)		  

North America wholesale:

         

External customers

    $ 660,442      $ 164,620      $ 517,338      $ 126,271   

Intersegment

      103,954          87,107     

Europe wholesale:

         

External customers

      471,874        120,636        357,201        96,441   

Intersegment

      111,056          60,221     

Asia Pacific wholesale:

         

External customers

      210,674        74,506        146,079        51,037   

Intersegment

      497,795          418,153     

Direct to consumer

      393,556        41,486        308,996        31,159   

Intersegment items

      (712,805 )        (565,481 )   

Corporate

        (103,621 )        (78,029 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 1,736,546      $ 297,627      $ 1,329,614      $ 226,879   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

The following table reflects revenue for each class of similar products in the periods presented (in thousands except percentage data):

 

     For the 13 Weeks Ended October 1, 2011     For the 13 Weeks Ended October 2, 2010  
     Amounts      Percentage of Total     Amounts      Percentage of Total  

Watches

    $ 464,438         72.2 %    $ 372,036         71.0 % 

Leathers

      108,628         16.9        86,728         16.6   

Jewelry

      46,943         7.3        41,925         8.0   

Other

      22,901         3.6        23,136         4.4   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 642,910         100.0 %    $ 523,825         100.0 % 
  

 

 

     

 

 

    

 

 

     

 

 

  
     For the 39 Weeks Ended October 1, 2011     For the 39 Weeks Ended October 2, 2010  
     Amounts      Percentage of Total     Amounts      Percentage of Total  

Watches

    $ 1,236,774         71.2 %    $ 914,749         68.8 % 

Leathers

      290,867         16.8        229,500         17.3   

Jewelry

      127,592         7.3        108,119         8.1   

Other

      81,313         4.7        77,246         5.8   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,736,546         100.0 %    $ 1,329,614         100.0 % 
  

 

 

     

 

 

    

 

 

     

 

 

  

The following table reflects total assets for each reporting segment on the dates presented (in thousands):

 

     Total Assets  
     October 1, 2011      January 1, 2011  

North America wholesale

    $ 522,747       $ 585,616   

Europe wholesale

      374,561         383,301   

Asia Pacific wholesale

      267,950         188,459   

Direct to consumer

      234,775         217,620   

Corporate

      136,157         92,577   
  

 

 

     

 

 

  

Consolidated

    $ 1,536,190       $ 1,467,573