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Segment Financial Information
 3 Months Ended
May 02, 2015
Segment Reporting [Abstract]  
Segment Financial Information

Note 11. 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 VHC for the fiscal year ended January 31, 2015 included in the 2014 Annual Report on Form 10K. 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 the carrying values of our goodwill and unamortized trademark, 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 $5,816 and $2,030 have been excluded from the net sales totals presented below for the three months ended May 2, 2015 and May 3, 2014, 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

 

 

 

May 2,

 

 

May 3,

 

 

 

2015

 

 

2014

 

Net Sales:

 

 

 

 

 

 

 

 

Wholesale

 

$

38,287

 

 

$

37,322

 

Direct-to-consumer

 

 

21,555

 

 

 

16,130

 

Total net sales

 

$

59,842

 

 

$

53,452

 

Operating Income:

 

 

 

 

 

 

 

 

Wholesale

 

$

14,277

 

 

$

13,078

 

Direct-to-consumer

 

 

2,371

 

 

 

2,477

 

Subtotal

 

 

16,648

 

 

 

15,555

 

Unallocated expenses

 

 

(11,547

)

 

 

(10,348

)

Total operating income

 

$

5,101

 

 

$

5,207

 

Capital Expenditures:

 

 

 

 

 

 

 

 

Wholesale

 

$

732

 

 

$

90

 

Direct-to-consumer

 

 

2,901

 

 

 

1,115

 

Unallocated corporate

 

 

2,627

 

 

 

133

 

Total capital expenditure

 

$

6,260

 

 

$

1,338

 

 

 

 

 

May 2,

2015

 

 

January 31, 2015

 

Total Assets:

 

 

 

 

 

 

 

 

Wholesale

 

$

58,500

 

 

$

70,635

 

Direct-to-consumer

 

 

35,685

 

 

 

33,793

 

Unallocated corporate

 

 

274,956

 

 

 

274,220

 

Total assets

 

$

369,141

 

 

$

378,648