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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information

7. 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
June 30, 2012		     For the 13 Weeks Ended
July 2, 2011		  
     Net Sales     Operating
Income		     Net Sales     Operating
Income		  

North America wholesale:

         

External customers

    $ 249,812      $ 45,858      $ 213,064      $ 56,172   

Intersegment

      46,053          33,372     

Europe wholesale:

         

External customers

      147,710        31,534        141,790        29,403   

Intersegment

      34,652          29,597     

Asia Pacific wholesale:

         

External customers

      84,344        33,561        67,856        23,301   

Intersegment

      161,425          148,374     

Direct to consumer

      154,238        15,710        133,951        14,756   

Intersegment items

      (242,130 )        (211,343 )   

Corporate

        (38,566 )        (37,370 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 636,104      $ 88,097      $ 556,661      $ 86,262   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     For the 26 Weeks Ended
June 30, 2012		     For the 26 Weeks Ended
July 2, 2011		  
     Net Sales     Operating
Income		     Net Sales     Operating
Income		  

North America wholesale:

         

External customers

    $ 474,812      $ 99,367      $ 419,800      $ 106,504   

Intersegment

      88,879          63,791     

Europe wholesale:

         

External customers

      300,661        62,632        293,620        67,515   

Intersegment

      69,213          64,730     

Asia Pacific wholesale:

         

External customers

      161,053        58,804        132,071        45,549   

Intersegment

      327,718          284,057     

Direct to consumer

      289,112        24,092        248,144        22,907   

Intersegment items

      (485,810 )        (412,578 )   

Corporate

        (73,937 )        (63,657 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated

    $ 1,225,638      $ 170,958      $ 1,093,635      $ 178,818   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

The following tables reflect net sales for each class of similar products in the periods presented (in thousands except percentage data):

 

     For the 13 Weeks Ended
June 30, 2012		     For the 13 Weeks Ended
July 2, 2011		  
     Net Sales      Percentage
of Total		     Net Sales      Percentage
of Total		  

Watches

    $ 476,755         75.0 %    $ 399,627         71.8 % 

Leathers

      96,907         15.2        91,690         16.5   

Jewelry

      37,779         5.9        38,483         6.9   

Other

      24,663         3.9        26,861         4.8   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 636,104         100.0 %    $ 556,661         100.0 % 
  

 

 

     

 

 

    

 

 

     

 

 

  

 

     For the 26 Weeks Ended
June 30, 2012		     For the 26 Weeks Ended
July 2, 2011		  
     Net Sales      Percentage
of Total		     Net Sales      Percentage
of Total		  

Watches

    $ 895,188         73.0 %    $ 772,336         70.6 % 

Leathers

      200,955         16.4        182,239         16.7   

Jewelry

      76,930         6.3        80,649         7.4   

Other

      52,565         4.3        58,411         5.3   
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ 1,225,638         100.0 %    $ 1,093,635         100.0 % 
  

 

 

     

 

 

    

 

 

     

 

 

  

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

 

     Total Assets  
     June 30,
2012		      December 31,
2011		  

North America wholesale

    $ 594,844       $ 524,615   

Europe wholesale

      339,547         436,775   

Asia Pacific wholesale

      353,758         258,343   

Direct to consumer

      241,329         246,911   

Corporate

      180,030         176,278   
  

 

 

     

 

 

  

Consolidated

    $ 1,709,508       $ 1,642,922