SEGMENT INFORMATION

3 Months Ended

May 01, 2021

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 May 1, 2021, The Children’s Place U.S. had 624 stores and The Children’s Place International had 100 stores. As of May 2, 2020, The Children’s Place U.S. had 800 stores and The Children’s Place International had 120 stores.

The following tables provide segment level financial information:


	Thirteen Weeks Ended
	May 1, 2021			May 2, 2020
	(in thousands)
Net sales(1):
The Children’s Place U.S.	$	399,659		$	234,948
The Children’s Place International (2)	35,822			20,259
Total net sales	$	435,481		$	255,207








Operating income (loss)(1):
The Children’s Place U.S.	$	63,912		$	(159,336)
The Children’s Place International	1,995			(13,807)
Total operating income (loss)	$	65,907		$	(173,143)
Operating income (loss) as a percent of net sales(1):
The Children’s Place U.S.	16.0		%	(67.8)		%
The Children’s Place International	5.6		%	(68.2)		%
Total operating income (loss) as a percent of net sales	15.1		%	(67.8)		%
Depreciation and amortization:
The Children’s Place U.S.	$	14,311		$	16,186
The Children’s Place International	1,250			1,702
Total depreciation and amortization	$	15,561		$	17,888
Capital expenditures:
The Children’s Place U.S.	$	6,487		$	5,200
The Children’s Place International	239			533
Total capital expenditures	$	6,726		$	5,733

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(1)Net sales and operating income (loss) were significantly impacted by the COVID-19 pandemic in the First Quarter 2020.

(2)Net sales from The Children’s Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars.


	May 1, 2021		January 30, 2021		May 2, 2020
Total assets:	(in thousands)
The Children’s Place U.S.	$	1,041,441	$	1,054,339	$	1,097,544
The Children’s Place International	86,226		85,788		87,392
Total assets	$	1,127,667	$	1,140,127	$	1,184,936