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SEGMENT INFORMATION
 9 Months Ended
Sep. 28, 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
September 28, 2013

 

For the 13 Weeks Ended
September 29, 2012

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

300,707

 

$

76,689

 

$

253,997

 

$

55,328

 

Intersegment

 

54,318

 

 

 

44,891

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

209,507

 

56,180

 

163,453

 

39,267

 

Intersegment

 

51,888

 

 

 

43,913

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

104,835

 

36,046

 

97,636

 

36,258

 

Intersegment

 

287,100

 

 

 

254,841

 

 

 

Direct to consumer

 

195,347

 

18,567

 

169,084

 

22,865

 

Intersegment items

 

(393,306

)

 

 

(343,645

)

 

 

Corporate

 

 

 

(46,450

)

 

 

(40,631

)

Consolidated

 

$

810,396

 

$

141,032

 

$

684,170

 

$

113,087

 

 

 

 

For the 39 Weeks Ended
September 28, 2013

 

For the 39 Weeks Ended
September 29, 2012

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

816,565

 

$

203,418

 

$

728,808

 

$

154,695

 

Intersegment

 

149,280

 

 

 

133,770

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

554,171

 

131,178

 

464,114

 

$

101,899

 

Intersegment

 

131,289

 

 

 

113,126

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

287,798

 

94,069

 

258,689

 

$

95,062

 

Intersegment

 

742,190

 

 

 

582,559

 

 

 

Direct to consumer

 

539,010

 

41,784

 

458,196

 

$

46,957

 

Intersegment items

 

(1,022,759

)

 

 

(829,455

)

 

 

Corporate

 

 

 

(128,148

)

 

 

(114,568

)

Consolidated

 

$

2,197,544

 

$

342,301

 

$

1,909,807

 

$

284,045

 

 

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 28, 2013

 

For the 13 Weeks Ended
September 29, 2012

 

 

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

619,087

 

76.4

%

$

516,994

 

75.6

%

Leathers

 

114,692

 

14.1

 

106,976

 

15.6

 

Jewelry

 

57,320

 

7.1

 

39,973

 

5.8

 

Other

 

19,297

 

2.4

 

20,227

 

3.0

 

Total

 

$

810,396

 

100.0

%

$

684,170

 

100.0

%

 

 

 

For the 39 Weeks Ended

 

For the 39 Weeks Ended

 

 

 

September 28, 2013

 

September 29, 2012

 

 

 

Net Sales

 

Percentage
of Total

 

Net Sales

 

Percentage
of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

1,679,329

 

76.4

%

$

1,412,181

 

74.0

%

Leathers

 

309,228

 

14.1

 

307,931

 

16.1

 

Jewelry

 

146,677

 

6.7

 

116,903

 

6.1

 

Other

 

62,310

 

2.8

 

72,792

 

3.8

 

Total

 

$

2,197,544

 

100.0

%

$

1,909,807

 

100.0

%