SEGMENT INFORMATION

9 Months Ended

Oct. 31, 2020

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATIONIn 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 an e-commerce business 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-based 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 October 31, 2020, The Children’s Place U.S. had 702 stores and The Children’s Place International had 107 stores. As of November 2, 2019, The Children’s Place U.S. had 834 stores and The Children’s Place International had 121 stores.

The following tables provide segment level financial information:


	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	October 31, 2020			November 2, 2019			October 31, 2020			November 2, 2019
	(in thousands)
Net sales(1):
The Children’s Place U.S.	$	373,625		$	467,834		$	941,607		$	1,217,215
The Children’s Place International (2)	51,946			56,962			108,094			140,432
Total net sales	$	425,571		$	524,796		$	1,049,701		$	1,357,647








Operating income (loss)(1):
The Children’s Place U.S.	$	17,491		$	48,129		$	(204,468)		$	55,722
The Children’s Place International	5,832			9,822			(9,836)			11,102
Total operating income (loss)	$	23,323		$	57,951		$	(214,304)		$	66,824
Operating income (loss) as a percent of net sales(1):
The Children’s Place U.S.	4.7		%	10.3		%	(21.7		%)	4.6		%
The Children’s Place International	11.2		%	17.2		%	(9.1		%)	7.9		%
Total operating income (loss) as a percent of net sales	5.5		%	11.0		%	(20.4		%)	4.9		%
Depreciation and amortization:
The Children’s Place U.S.	$	14,542		$	16,971		$	46,322		$	50,301
The Children’s Place International	1,267			1,850			4,083			5,576
Total depreciation and amortization	$	15,809		$	18,821		$	50,405		$	55,877
Capital expenditures:
The Children’s Place U.S.	$	9,413		$	20,326		$	23,046		$	41,741
The Children’s Place International	82			230			717			655
Total capital expenditures	$	9,495		$	20,556		$	23,763		$	42,396

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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.


	October 31, 2020		February 1, 2020		November 2, 2019
Total assets:	(in thousands)
The Children’s Place U.S.	$	1,113,309	$	1,080,665	$	1,179,493
The Children’s Place International	93,634		100,732		106,229
Total assets	$	1,206,943	$	1,181,397	$	1,285,722