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SEGMENT INFORMATION
 3 Months Ended
Mar. 30, 2013
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 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
March 30, 2013

 

For the 13 Weeks Ended
March 31, 2012

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

255,165

 

$

60,408

 

$

225,000

 

$

53,509

 

Intersegment

 

45,946

 

 

 

42,826

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

173,906

 

38,547

 

152,950

 

31,098

 

Intersegment

 

40,688

 

 

 

34,561

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

86,776

 

27,550

 

76,709

 

25,243

 

Intersegment

 

202,196

 

 

 

166,293

 

 

 

Direct to consumer

 

165,052

 

7,112

 

134,874

 

8,382

 

Intersegment items

 

(288,830

)

 

 

(243,680

)

 

 

Corporate

 

 

 

(39,296

)

 

 

(35,371

)

Consolidated

 

$

680,899

 

$

94,321

 

$

589,533

 

$

82,861

 

 

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
March 30, 2013

 

For the 13 Weeks Ended
March 31, 2012

 

 

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

513,017

 

75.3

%

$

418,432

 

71.0

%

Leathers

 

102,788

 

15.1

 

104,047

 

17.7

 

Jewelry

 

42,314

 

6.2

 

39,152

 

6.6

 

Other

 

22,780

 

3.4

 

27,902

 

4.7

 

Total

 

$

680,899

 

100.0

%

$

589,533

 

100.0

%