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SEGMENT INFORMATION | 6 Months Ended
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Jul. 04, 2020
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 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 (including Hong Kong, Macau and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea 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 (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes peripheral revenue generating activities from factories and intellectual property and 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 that 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. Summary information by operating segment was as follows (in thousands):
| For the 13 Weeks Ended July 4, 2020 |  | For the 13 Weeks Ended June 29, 2019
| Net Sales |  | Operating Income (Loss) |  | Net Sales |  | Operating Income (Loss)
Americas | $ | 105,749 |  |  | $ | 4,781 |  |  | $ | 223,107 |  |  | $ | 29,540 |
Europe | 79,545 |  |  | (10,498 | ) |  | 147,082 |  |  | 12,463 |
Asia | 69,248 |  |  | 6,624 |  |  | 126,275 |  |  | 26,959 |
Corporate | 4,467 |  |  | (37,712 | ) |  | 4,929 |  |  | (67,281 | )
Consolidated | $ | 259,009 |  |  | $ | (36,805 | ) |  | $ | 501,393 |  |  | $ | 1,681 |
| For the 27 Weeks Ended July 4, 2020 |  | For the 26 Weeks Ended June 29, 2019
| Net Sales |  | Operating Income (Loss)(1) |  | Net Sales |  | Operating Income (Loss)
Americas | $ | 258,666 |  |  | $ | (32,353 | ) |  | $ | 413,476 |  |  | $ | 40,458 |
Europe | 207,795 |  |  | (13,154 | ) |  | 300,360 |  |  | 26,743 |
Asia | 175,435 |  |  | 17,864 |  |  | 243,174 |  |  | 48,000 |
Corporate | 7,831 |  |  | (143,503 | ) |  | 9,651 |  |  | (133,464 | )
Consolidated | $ | 649,727 |  |  | $ | (171,146 | ) |  | $ | 966,661 |  |  | $ | (18,263 | )
___________________________________________________________________________________________________________________ (1)Subsequent to the issuance of the Company's condensed consolidated financial statements for the 14 weeks ended April 4, 2020, the Company's management determined that Operating Loss for the Americas and Corporate segments for the 14 weeks ended April 4, 2020 was incorrectly presented as certain charges totaling $24.5 million were incorrectly attributed to the Americas segment rather than the Corporate segment. As a result, Operating Loss for the Americas and Corporate segments for the 27 week period ended July 4, 2020 has been corrected. The Company’s management evaluated the materiality of the disclosure misstatement from a quantitative and qualitative perspective and concluded the misstatement was not material to the 14 weeks ended April 4, 2020. 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 July 4, 2020 |  | For the 13 Weeks Ended June 29, 2019
| Net Sales |  | Percentage of Total |  | Net Sales |  | Percentage of Total
Watches | $ | 209,499 |  |  | 80.9 | % |  | $ | 413,285 |  |  | 82.4 | %
Leathers | 26,554 |  |  | 10.3 |  |  | 52,630 |  |  | 10.5 |
Jewelry | 15,206 |  |  | 5.9 |  |  | 20,786 |  |  | 4.2 |
Other | 7,750 |  |  | 2.9 |  |  | 14,692 |  |  | 2.9 |
Total | $ | 259,009 |  |  | 100.0 | % |  | $ | 501,393 |  |  | 100.0 | %
| For the 27 Weeks Ended July 4, 2020 |  | For the 26 Weeks Ended June 29, 2019
| Net Sales |  | Percentage of Total |  | Net Sales |  | Percentage of Total
Watches | $ | 519,425 |  |  | 79.9 | % |  | $ | 779,463 |  |  | 80.6 | %
Leathers | 73,861 |  |  | 11.4 |  |  | 106,534 |  |  | 11.0 |
Jewelry | 38,422 |  |  | 5.9 |  |  | 51,946 |  |  | 5.4 |
Other | 18,019 |  |  | 2.8 |  |  | 28,718 |  |  | 3.0 |
Total | $ | 649,727 |  |  | 100.0 | % |  | $ | 966,661 |  |  | 100.0 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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