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SEGMENT INFORMATION
 9 Months Ended
Sep. 29, 2012
SEGMENT INFORMATION  
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
September 29, 2012

 

For the 13 Weeks Ended
October 1, 2011

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

253,997

 

$

55,328

 

$

240,642

 

$

58,116

 

Intersegment

 

44,891

 

 

 

40,163

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

163,453

 

39,267

 

178,254

 

53,121

 

Intersegment

 

43,913

 

 

 

46,326

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

97,636

 

36,258

 

78,602

 

28,957

 

Intersegment

 

254,841

 

 

 

213,738

 

 

 

Direct to consumer

 

169,084

 

22,865

 

145,412

 

18,579

 

Intersegment items

 

(343,645

)

 

 

(300,227

)

 

 

Corporate

 

 

 

(40,631

)

 

 

(39,964

)

Consolidated

 

$

684,170

 

$

113,087

 

$

642,910

 

$

118,809

 

 

 

 

For the 39 Weeks Ended
September 29, 2012

 

For the 39 Weeks Ended
October 1, 2011

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

728,808

 

$

154,695

 

$

660,442

 

$

164,620

 

Intersegment

 

133,770

 

 

 

103,954

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

464,114

 

101,899

 

471,874

 

120,636

 

Intersegment

 

113,126

 

 

 

111,056

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

258,689

 

95,062

 

210,674

 

74,506

 

Intersegment

 

582,559

 

 

 

497,795

 

 

 

Direct to consumer

 

458,196

 

46,957

 

393,556

 

41,486

 

Intersegment items

 

(829,455

)

 

 

(712,805

)

 

 

Corporate

 

 

 

(114,568

)

 

 

(103,621

)

Consolidated

 

$

1,909,807

 

$

284,045

 

$

1,736,546

 

$

297,627

 

 

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
September 29, 2012

 

For the 13 Weeks Ended
October 1, 2011

 

 

 

Net Sales

 

Percentage of
Total

 

Net Sales

 

Percentage of
Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

516,994

 

75.6

%

$

464,438

 

72.2

%

Leathers

 

106,976

 

15.6

 

108,628

 

16.9

 

Jewelry

 

39,973

 

5.8

 

46,943

 

7.3

 

Other

 

20,227

 

3.0

 

22,901

 

3.6

 

Total

 

$

684,170

 

100.0

%

$

642,910

 

100.0

%

 

 

 

For the 39 Weeks Ended
September 29, 2012

 

For the 39 Weeks Ended 
October 1, 2011

 

 

 

Net Sales

 

Percentage of
Total

 

Net Sales

 

Percentage of
Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

1,412,181

 

74.0

%

$

1,236,774

 

71.2

%

Leathers

 

307,931

 

16.1

 

290,867

 

16.8

 

Jewelry

 

116,903

 

6.1

 

127,592

 

7.3

 

Other

 

72,792

 

3.8

 

81,313

 

4.7

 

Total

 

$

1,909,807

 

100.0

%

$

1,736,546

 

100.0

%

 

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

 

 

 

Total Assets

 

 

 

September 29,
2012

 

December 31,
2011

 

North America wholesale

 

$

675,729

 

$

524,615

 

Europe wholesale

 

395,301

 

436,775

 

Asia Pacific wholesale

 

343,790

 

258,343

 

Direct to consumer

 

262,698

 

246,911

 

Corporate

 

173,557

 

176,278

 

Consolidated

 

$

1,851,075

 

$

1,642,922