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Segment Financial Information
 9 Months Ended
Nov. 01, 2014
Segment Reporting [Abstract]  
Segment Financial Information

Note 14. Segment Financial Information

We operate and manage our business by distribution channel and have identified two reportable segments, as further described below. We considered both similar and dissimilar economic characteristics, internal reporting and management structures, as well as products, customers, and supply chain logistics to identify the following reportable segments:

 

  •   Wholesale segment—consists of our operations to distribute products to premier department stores and specialty stores in the United States and select international markets; and

 

  •   Direct-to-consumer segment—consists of our operations to distribute products directly to the consumer through our branded full-price specialty retail stores, outlet stores, and e-commerce platform.

The accounting policies of our segments are consistent with those described in Note 1 to the audited Consolidated Financial Statements of Vince Holding Corp. for the fiscal year ended February 1, 2014 included in the 2013 Annual Report on Form 10-K filed with the SEC on April 4, 2014. Unallocated corporate expenses are comprised of selling, general, and administrative expenses attributable to corporate and administrative activities, and other charges that are not directly attributable to our operating segments. Unallocated corporate assets are comprised of capitalized deferred financing costs, the carrying values of our goodwill and unamortized trademark, debt and deferred tax assets, and other assets that will be utilized to generate revenue for both of our reportable segments.

Our wholesale segment sells apparel to our direct-to-consumer segment at cost. The wholesale intercompany sales of $9,077 and $6,014 have been excluded from the net sales totals presented below for the three months ended November 1, 2014 and November 2, 2013, respectively. The wholesale intercompany sales of $16,978 and $11,986 have been excluded from the net sales totals presented below for the nine months ended November 1, 2014 and November 2, 2013, respectively. Furthermore, as intercompany sales are sold at cost, no intercompany profit is reflected in operating income presented below.

 

Summary information for our operating segments is presented below (in thousands).

 

     Three Months Ended     Nine Months Ended  
     November 1,
2014		     November 2,
2013		     November 1,
2014		     November 2,
2013		  

Net Sales:

         

Wholesale

    $ 78,898      $ 67,281      $ 190,564      $ 159,832   

Direct-to-consumer

      24,049        18,474        55,161        40,580   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total net sales

    $ 102,947      $ 85,755      $ 245,725      $ 200,412   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating Income:

         

Wholesale

    $ 30,577      $ 25,003      $ 74,204      $ 56,314   

Direct-to-consumer

      6,042        5,229        9,855        7,740   
  

 

 

    

 

 

    

 

 

    

 

 

  

Subtotal

      36,619        30,232        84,059        64,054   

Unallocated expenses

      (11,789 )      (12,694 )      (34,078 )      (29,631 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

    $ 24,830      $ 17,538      $ 49,981      $ 34,423   
  

 

 

    

 

 

    

 

 

    

 

 

  

Capital Expenditures:

         

Wholesale

    $ 673      $ 623      $ 1,238      $ 1,244   

Direct-to-consumer

      3,072        3,402        6,158        6,187   

Unallocated corporate

      4,210        —          7,910        —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Total capital expenditure

    $ 7,955      $ 4,025      $ 15,306      $ 7,431   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

     November 1,
2014		      February 1,
2014		  

Total Assets:

      

Wholesale

    $ 86,665       $ 78,122   

Direct-to-consumer

      34,694         24,169   

Unallocated expenses

      282,882         312,051   
  

 

 

     

 

 

  

Total assets

    $ 404,241       $ 414,342