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SEGMENT INFORMATION | 6 Months Ended
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Aug. 03, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 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 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 one U.S. wholesale customer that individually accounted for more than 10% of its net sales, amounting to $44.5 million and $61.0 million for the Second Quarter 2024 and Year-To-Date 2024, respectively, and accounts for a majority of the Company’s accounts receivable. As of August 3, 2024, The Children’s Place U.S. had 452 stores and The Children’s Place International had 63 stores. As of July 29, 2023, The Children’s Place U.S. had 525 stores and The Children’s Place International had 71 stores. The following table provides segment level financial information:
| Thirteen Weeks Ended |  | Twenty-six Weeks Ended
| August 3, 2024 |  | July 29, 2023 |  | August 3, 2024 |  | July 29, 2023
| (in thousands)
Net sales: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | 292,393 |  |  | $ | 313,217 |  |  | $ | 538,581 |  | $ | 606,703
The Children’s Place International (1) | 27,262 |  |  | 32,382 |  |  | 48,952 |  | 60,536
Total net sales | $ | 319,655 |  |  | $ | 345,599 |  |  | $ | 587,533 |  | $ | 667,239
Operating loss: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | (19,673) |  |  | $ | (36,739) |  |  | $ | (43,652) |  | $ | (64,766)
The Children’s Place International | (2,103) |  |  | (202) |  |  | (6,112) |  | (2,242)
Total operating loss | $ | (21,776) |  |  | $ | (36,941) |  |  | $ | (49,764) |  | $ | (67,008)
Operating loss as a percentage of net sales: |  |  |  |  |  |  |
The Children’s Place U.S. | (6.7%) |  | (11.7%) |  | (8.1%) |  | (10.7)%
The Children’s Place International | (7.7%) |  | (0.6%) |  | (12.5%) |  | (3.7)%
Total operating loss as a percentage of net sales | (6.8%) |  | (10.7%) |  | (8.5%) |  | (10.0)%
Depreciation and amortization: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | 8,835 |  |  | $ | 11,079 |  |  | $ | 18,489 |  | $ | 21,984
The Children’s Place International | 670 |  |  | 874 |  |  | 2,651 |  | 1,817
Total depreciation and amortization | $ | 9,505 |  |  | $ | 11,953 |  |  | $ | 21,140 |  | $ | 23,801
Capital expenditures: |  |  |  |  |  |  |
The Children’s Place U.S. | $ | 7,720 |  |  | $ | 7,170 |  |  | $ | 12,398 |  | $ | 18,142
The Children’s Place International | 64 |  |  | — |  |  | 80 |  | 10
Total capital expenditures | $ | 7,784 |  |  | $ | 7,170 |  |  | $ | 12,478 |  | $ | 18,152
____________________________________________ (1)Net sales from The Children’s Place International are primarily derived from Canadian operations. The Company’s 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.

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- Definition The entire disclosure for reporting segments including data and tables. 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