SEGMENT INFORMATION

3 Months Ended

May 02, 2020

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

In accordance with FASB ASC 280--Segment Reporting, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes e-commerce businesses located at www.childrensplace.com and www.gymboree.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company's Canadian-based stores, revenue from the Company’s Canadian wholesale business, and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions such as production and design as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales to external customers are derived from merchandise sales, and the Company has no major customers that account for more than 10% of its net sales. As of May 2, 2020, The Children’s Place U.S. had 800 stores and The Children’s Place International had 120 stores. As of May 4, 2019, The Children’s Place U.S. had 849 stores and The Children’s Place International had 122 stores.

The following tables provide segment level financial information:


	Thirteen Weeks Ended
	May 2, 2020			May 4, 2019
	(In thousands)
Net sales ⁽¹⁾:
The Children’s Place U.S.	$	234,948		$	374,657
The Children’s Place International ⁽²⁾	20,259			37,725
Total net sales	$	255,207		$	412,382








Operating income (loss) ⁽¹⁾:
The Children’s Place U.S.	$	(159,336)		$	4,161
The Children’s Place International	(13,807)			877
Total operating income (loss)	$	(173,143)		$	5,038
Operating income (loss) as a percent of net sales⁽¹⁾:
The Children’s Place U.S.	(67.8)		%	1.1		%
The Children’s Place International	(68.2)		%	2.3		%
Total operating income (loss) as a percent of net sales	(67.8)		%	1.2		%
Depreciation and amortization:
The Children’s Place U.S.	$	16,186		$	16,709
The Children’s Place International	1,702			1,875
Total depreciation and amortization	$	17,888		$	18,584
Capital expenditures:
The Children’s Place U.S.	$	5,200		$	10,800
The Children’s Place International	533			209
Total capital expenditures	$	5,733		$	11,009

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⁽¹⁾Net sales and operating income (loss) were significantly impacted by the COVID-19 pandemic.

⁽²⁾Net sales from The Children's Place International are primarily derived from revenues from Canadian operations.


	May 2, 2020		February 1, 2020		May 4, 2019
Total assets:	(In thousands)
The Children’s Place U.S.	$	1,097,544	$	1,080,665	$	1,183,611
The Children’s Place International	87,392		100,732		102,343
Total assets	$	1,184,936	$	1,181,397	$	1,285,954