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SEGMENT INFORMATION
 6 Months Ended
Jun. 29, 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
June 29, 2013

 

For the 13 Weeks Ended
June 30, 2012

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

260,692

 

$

66,321

 

$

249,812

 

$

45,858

 

Intersegment

 

49,016

 

 

 

46,053

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

170,759

 

36,451

 

147,710

 

31,534

 

Intersegment

 

38,713

 

 

 

34,652

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

96,187

 

30,473

 

84,344

 

33,561

 

Intersegment

 

252,894

 

 

 

161,425

 

 

 

Direct to consumer

 

178,611

 

16,105

 

154,238

 

15,710

 

Intersegment items

 

(340,623

)

 

 

(242,130

)

 

 

Corporate

 

 

 

(42,402

)

 

 

(38,566

)

Consolidated

 

$

706,249

 

$

106,948

 

$

636,104

 

$

88,097

 

 

 

 

For the 26 Weeks Ended

 

For the 26 Weeks Ended

 

 

 

June 29, 2013

 

June 30, 2012

 

 

 

 

 

Operating

 

 

 

Operating

 

 

 

Net Sales

 

Income

 

Net Sales

 

Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

515,858

 

$

126,729

 

$

474,812

 

$

99,367

 

Intersegment

 

94,962

 

 

 

88,879

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

344,663

 

74,998

 

300,661

 

62,632

 

Intersegment

 

79,401

 

 

 

69,213

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

182,963

 

58,023

 

161,053

 

58,804

 

Intersegment

 

455,090

 

 

 

327,718

 

 

 

Direct to consumer

 

343,664

 

23,217

 

289,112

 

24,092

 

Intersegment items

 

(629,453

)

 

 

(485,810

)

 

 

Corporate

 

 

 

(81,698

)

 

 

(73,937

)

Consolidated

 

$

1,387,148

 

$

201,269

 

$

1,225,638

 

$

170,958

 

 

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 29, 2013

 

For the 13 Weeks Ended
June 30, 2012

 

 

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

547,225

 

77.5

%

$

476,755

 

75.0

%

Leathers

 

91,748

 

13.0

 

96,907

 

15.2

 

Jewelry

 

47,042

 

6.7

 

37,779

 

5.9

 

Other

 

20,234

 

2.8

 

24,663

 

3.9

 

Total

 

$

706,249

 

100.0

%

$

636,104

 

100.0

%

 

 

 

For the 26 Weeks Ended

 

For the 26 Weeks Ended

 

 

 

June 29, 2013

 

June 30, 2012

 

 

 

 

 

Percentage

 

 

 

Percentage

 

 

 

Net Sales

 

of Total

 

Net Sales

 

of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

1,060,242

 

76.4

%

$

895,188

 

73.0

%

Leathers

 

194,536

 

14.0

 

200,955

 

16.4

 

Jewelry

 

89,356

 

6.5

 

76,930

 

6.3

 

Other

 

43,014

 

3.1

 

52,565

 

4.3

 

Total

 

$

1,387,148

 

100.0

%

$

1,225,638

 

100.0

%