XML 31 R20.htm IDEA: XBRL DOCUMENT v3.23.3
Segment Reporting
 9 Months Ended
Oct. 28, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business.

During the second quarter of Fiscal 2023, to leverage the knowledge and experience of our regional teams to better drive brand growth, the Company reorganized its structure and now manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income (loss). The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. All prior periods presented are recast to conform to the new segment presentation.

The group comprised of the Company’s (i) Chief Executive Officer and (ii) Chief Financial Officer and Chief Operating Officer functions as the Company’s CODM. The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment.

Net sales by segment are presented by attributing revenues on the basis of the segment that fulfills the order. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment. Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions.

The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments. The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources.

The following tables provide the Company’s segment information as of October 28, 2023 and January 28, 2023, and for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:

Net Sales
Thirteen Weeks EndedThirty-Nine Weeks Ended
(in thousands)October 28, 2023October 29, 2022October 28, 2023October 29, 2022
Americas$867,566 $713,860 $2,264,415 $1,949,066 
EMEA157,976 138,840 468,045 465,394 
APAC30,889 27,384 95,310 83,477 
Segment total$1,056,431 $880,084 $2,827,770 $2,497,937 

Operating Income (loss)
Thirteen Weeks EndedThirty-Nine Weeks Ended
(in thousands)October 28, 2023October 29, 2022October 28, 2023October 29, 2022
Americas$257,440 $125,726 $590,948 $297,826 
EMEA20,795 3,455 49,170 30,107 
APAC(3,261)(5,643)(6,272)(21,128)
Segment total$274,974 $123,538 $633,846 $306,805 
Operating (loss) income not attributed to Segments:
Stores and distribution expense(3,202)(1,254)(8,205)(5,972)
Marketing, general and administrative expense(132,496)(105,747)(368,099)(299,108)
Other operating (loss) income, net(1,256)1,006 4,328 3,901 
Total operating income$138,020 $17,543 $261,870 $5,626 
Assets
(in thousands)October 28, 2023January 28, 2023
Inventories
Americas$481,288 $404,040 
EMEA91,129 80,447 
APAC22,650 21,134 
Total inventories$595,067 $505,621 
Assets not attributed to Segments2,302,579 2,207,479 
Total assets$2,897,646 $2,713,100 

Brand Information

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen and thirty-nine weeks ended October 28, 2023 and October 29, 2022:
Thirteen Weeks EndedThirty-Nine Weeks Ended
(in thousands)October 28, 2023October 29, 2022October 28, 2023October 29, 2022
Abercrombie$547,728 $422,332 $1,446,483 $1,174,445 
Hollister508,703 457,752 1,381,287 1,323,492 
Total$1,056,431 $880,084 $2,827,770 $2,497,937