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SEGMENT INFORMATION
 6 Months Ended
Jul. 04, 2015
SEGMENT INFORMATION  
SEGMENT INFORMATION

 

9. SEGMENT INFORMATION

 

The Company reports segment information based on the “management approach”. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.

 

The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. 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 based on the location of the selling entity. 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, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes.

 

Certain reclassifications have been made to prior year amounts to conform with current year presentation. Due to changes in the Company’s reportable segments as discussed in Note 1 to the condensed consolidated financial statements, segment results for fiscal year 2014 have been recast to present results on a comparable basis.

 

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

 

 

 

For the 13 Weeks Ended

 

For the 13 Weeks Ended

 

 

 

July 4, 2015

 

July 5, 2014

 

 

 

Net Sales

 

Operating Income

 

Net Sales

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$
386,088

 

$
86,033

 

$
380,699

 

$
88,786

 

Europe

 
227,923

 
41,814

 
258,987

 
46,770

 

Asia

 
125,964

 
20,555

 
134,134

 
27,172

 

Corporate

 

 

 
(77,968

)

 

 
(77,970

)

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$
739,975

 

$
70,434

 

$
773,820

 

$
84,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the 26 Weeks Ended

 

For the 27 Weeks Ended

 

 

 

July 4, 2015

 

July 5, 2014

 

 

 

Net Sales

 

Operating Income

 

Net Sales

 

Operating Income

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$
752,684

 

$
162,533

 

$
763,360

 

$
187,856

 

Europe

 
462,179

 
79,152

 
519,340

 
99,278

 

Asia

 
250,197

 
41,051

 
267,665

 
58,070

 

Corporate

 

 

 
(156,147

)

 

 
(155,747

)

 

 

 

 

 

 

 

 

 

 

Consolidated

 

$
1,465,060

 

$
126,589

 

$
1,550,365

 

$
189,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 4, 2015

 

January 3, 2015

 

 

 

Long-Term Assets

 

Total Assets

 

Long-Term Assets

 

Total Assets

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$
262,507 

 

$
772,618 

 

$
263,324 

 

$
809,548 

 

Europe

 
202,586 

 
488,965 

 
220,742 

 
561,486 

 

Asia

 
54,993 

 
213,381 

 
57,508 

 
233,881 

 

Corporate

 
173,016 

 
584,477 

 
176,124 

 
602,637 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
693,102 

 

$
2,059,441 

 

$
717,698 

 

$
2,207,552 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

For the 13 Weeks Ended

 

 

 

July 4, 2015

 

July 5, 2014

 

 

 

Net Sales

 

Percentage of Total

 

Net Sales

 

Percentage of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$
575,804 

 
77.8 

%

$
611,208 

 
79.0 

%

Leathers

 
89,380 

 
12.1 

 
87,325 

 
11.3 

 

Jewelry

 
55,780 

 
7.5 

 
56,183 

 
7.2 

 

Other

 
19,011 

 
2.6 

 
19,104 

 
2.5 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
739,975 

 
100.0 

%

$
773,820 

 
100.0 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the 26 Weeks Ended

 

For the 27 Weeks Ended

 

 

 

July 4, 2015

 

July 5, 2014

 

 

 

Net Sales

 

Percentage of Total

 

Net Sales

 

Percentage of Total

 

 

 

 

 

 

 

 

 

 

 

Watches

 

$
1,127,661 

 
77.0 

%

$
1,212,596 

 
78.2 

%

Leathers

 
182,306 

 
12.4 

 
187,047 

 
12.1 

 

Jewelry

 
118,767 

 
8.1 

 
112,701 

 
7.3 

 

Other

 
36,326 

 
2.5 

 
38,021 

 
2.4 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
1,465,060 

 
100.0 

%

$
1,550,365 

 
100.0 

%