XML 59 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
SEGMENT INFORMATION
 3 Months Ended
Apr. 05, 2014
SEGMENT INFORMATION  
SEGMENT INFORMATION

9. 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 activities and catalog costs. 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.  Intercompany profit attributable to the Company’s factory operations is included in the Asia Pacific wholesale and Europe wholesale segments in accordance with the geographic location of the factories.  These intercompany factory profits are eliminated in consolidation.

 

Summary information by operating segment was as follows (in thousands):

 

 

 

For the 14 Weeks Ended

 

For the 13 Weeks Ended

 

 

 

April 5, 2014

 

March 30, 2013

 

 

 

Net Sales

 

Operating
Income

 

Net Sales

 

Operating
Income

 

 

 

 

 

 

 

 

 

 

 

North America wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

$

272,796

 

$

52,879

 

$

255,165

 

$

60,408

 

Intersegment

 

48,191

 

 

 

45,946

 

 

 

Europe wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

205,663

 

51,960

 

173,906

 

38,547

 

Intersegment

 

49,198

 

 

 

40,688

 

 

 

Asia Pacific wholesale:

 

 

 

 

 

 

 

 

 

External customers

 

103,560

 

31,120

 

86,776

 

27,550

 

Intersegment

 

244,147

 

 

 

202,196

 

 

 

Direct to consumer

 

194,525

 

16,286

 

165,052

 

7,112

 

Intersegment items

 

(341,536

)

 

 

(288,830

)

 

 

Corporate

 

 

 

(47,547

)

 

 

(39,296

)

Consolidated

 

$

776,544

 

$

104,698

 

$

680,899

 

$

94,321

 

 

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

 

 

 

For the 14 Weeks Ended

 

For the 13 Weeks Ended

 

 

 

April 5, 2014

 

March 30, 2013

 

 

 

Net Sales

 

Percentage of
Total

 

Net Sales

 

Percentage of
Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$

601,388

 

77.5

%

$

513,017

 

75.3

%

Leathers

 

99,722

 

12.8

 

102,788

 

15.1

 

Jewelry

 

56,518

 

7.3

 

42,314

 

6.2

 

Other

 

18,916

 

2.4

 

22,780

 

3.4

 

Total

 

$

776,544

 

100.0

%

$

680,899

 

100.0

%