NOTE K– BUSINESS SEGMENTS

The Company has three reportable business segments: U.S. Wholesale, International and Retail Direct. The U.S. Wholesale segment is the Company’s primary domestic business that designs, markets and distributes its products to retailers and distributors. The International segment consists of certain business operations conducted outside the U.S. The Retail Direct segment is where the Company markets and sells a limited selection of its products directly to consumers through third party and its own internet websites.

The Company has segmented its operations to reflect the manner in which management reviews and evaluates the results of its operations. While the three segments distribute similar products, the segments are distinct due to the different methods the Company uses to sell, market, and distribute the products. Management evaluates the performance of the U.S. Wholesale, International and Retail Direct segments based on net sales and income (loss) from operations. Such measures give recognition to specifically identifiable operating costs such as cost of sales, distribution expenses and selling, general and administrative expenses. Certain general and administrative expenses, such as senior executive salaries and benefits, stock compensation, director fees and accounting, legal and consulting fees, are not allocated to the specific segments and are reflected as unallocated corporate expenses.


	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Net sales
U.S. Wholesale	$	124,348		$	94,770		$	215,143		$	182,162
International		19,083			19,365			40,929			40,593
Retail Direct		5,220			3,258			10,748			7,994

Total net sales	$	148,651		$	117,393		$	266,820		$	230,749

Income (Loss) from operations
U.S. Wholesale	$	2,101		$	3,712		$	(3,427	)	$	5,947
International		(204	)		(3,743	)		(3,424	)		(4,900	)
Retail Direct		(133	)		(277	)		(145	)		(161	)
Unallocated corporate expenses		(5,065	)		(2,833	)		(9,621	)		(5,901	)

Loss from operations	$	(3,301	)	$	(3,141	)	$	(16,617	)	$	(5,015	)

Depreciation and amortization
U.S. Wholesale	$	5,287		$	2,301		$	8,429		$	4,603
International		1,130			1,014			2,292			1,965
Retail Direct		5			33			10			66

Total depreciation and amortization	$	6,422		$	3,348		$	10,731		$	6,634


	June 30, 2018		December 31, 2017
	(in thousands)
Assets
U.S. Wholesale	$	619,288	$	281,398
International		102,584		105,984
Retail Direct		1,099		613
Unallocated/ Corporate/ Other		19,075		13,526

Total assets	$	742,046	$	401,521