| Segment Information | 13. Segment Information The Company operates its business through three
operating segments—Retail, Wholesale and
Licensing—which are based on its business activities and
organization. The operating segments are segments of the Company
for which separate financial information is available and for which
operating results are evaluated regularly by executive management
in deciding how to allocate resources, as well as in assessing
performance. The primary key performance indicators are net sales
or revenue (in the case of Licensing) and operating income for each
segment. The Company’s reportable segments represent channels
of distribution that offer similar merchandise, customer experience
and sales/marketing strategies. The Company’s Retail segment
includes sales through the Company owned stores, including
“Collection,” “Lifestyle” including
“concessions,” and outlet stores located throughout
North America, Europe, and Japan, as well as the Company’s
e-commerce sales. Products sold through the Retail segment include
women’s apparel, accessories (which include handbags and
small leather goods such as wallets), footwear and licensed
products, such as watches, jewelry, fragrances and beauty, and
eyewear. The Wholesale segment includes sales primarily to major
department stores and specialty shops throughout North America,
Europe and Asia. Products sold through the Wholesale segment
include accessories (which include handbags and small leather goods
such as wallets), footwear and women’s and men’s
apparel. We also have wholesale arrangements pursuant to which we
sell products to certain of our licensees, including our licensees
in Asia (which were previously reported within our North American
wholesale operations). The Licensing segment includes royalties
earned on licensed products and use of the Company’s
trademarks, and rights granted to third parties for the right to
sell the Company’s products in certain geographic regions
such as the Middle East, Eastern Europe, Latin America and the
Caribbean, throughout all of Asia (excluding Japan), as well as
Australia. All intercompany revenues are eliminated in
consolidation and are not reviewed when evaluating segment
performance. Corporate overhead expenses are allocated to the
segments based upon specific usage or other allocation methods.
The Company has allocated $12.1 million and $1.9
million of its recorded goodwill to its Wholesale and Licensing
segments, respectively. The Company does not have identifiable
assets separated by segment. The following table presents the key
performance information of the Company’s reportable segments
(in thousands):
Three Months Ended
June 27, June 28,
Revenue:
Net sales: Retail $ 523,300 $ 480,242
Wholesale 423,959 406,795
Licensing 38,716 32,117
Total revenue $ 985,975 $ 919,154
Income from operations:
Retail $ 120,874 $ 142,689
Wholesale 106,310 117,652
Licensing 21,439 16,430
Income from operations $ 248,623 $ 276,771
Depreciation and amortization expense for each
segment are as follows (in thousands):
Three Months Ended
June 27, June 28,
Depreciation and amortization:
Retail $ 25,091 $ 17,965
Wholesale 16,102 10,775
Licensing 360 258
Total depreciation and amortization $ 41,553 $ 28,998
Total revenue (as recognized based on country of
origin), and long-lived assets by geographic location of the
consolidated Company are as follows (in thousands):
Three Months Ended
June 27, June 28,
Revenues:
North America (U.S. and Canada) (1) $ 727,295 $ 718,889
Europe 216,813 185,497
Other regions 41,867 14,768
Total revenues $ 985,975 $ 919,154
As of
June 27, March 28,
Long-lived assets:
North America (U.S. and Canada) (1) $ 468,355 $ 443,816
Europe 208,348 169,243
Other regions 16,390 11,416
Total Long-lived assets $ 693,093 $ 624,475
(1)
Net revenues earned in the U.S. during the three months
ended June 27, 2015 and June 28, 2014 were $684.8 million
and $674.3 million, respectively. Long-lived assets located in the
U.S. as of June 27, 2015 and March 28, 2015 were $441.9
million and $418.8 million, respectively. |
