XML 31 R19.htm IDEA: XBRL DOCUMENT v3.21.2
SEGMENT INFORMATION
 6 Months Ended
Jul. 31, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATIONIn accordance with FASB ASC 280—Segment Reporting, the Company reports segment data based on geography: The Children’s Place U.S. and The Children’s Place International. Each segment includes an e-commerce business located at www.childrensplace.com and www.gymboree.com. Included in The Children’s Place U.S. segment are the Company’s U.S. and Puerto Rico-based stores and revenue from the Company’s U.S.-based wholesale business. Included in The Children’s Place International segment are the Company’s Canadian-based stores, revenue from the Company’s Canadian-based wholesale business, and revenue from international franchisees. The Company measures its segment profitability based on operating income, defined as income before interest and taxes. Net sales and direct costs are recorded by each segment. Certain inventory procurement functions, such as production and design, as well as corporate overhead, including executive management, finance, real estate, human resources, legal, and information technology services, are managed by The Children’s Place U.S. segment. Expenses related to these functions, including depreciation and amortization, are allocated to The Children’s Place International segment based primarily on net sales. The assets related to these functions are not allocated. The Company periodically reviews these allocations and adjusts them based upon changes in business circumstances. Net sales to external customers are derived from merchandise sales, and the Company has no major customers that individually account for more than 10% of its net sales. As of July 31, 2021, The Children’s Place U.S. had 615 stores and The Children’s Place International
had 93 stores. As of August 1, 2020, The Children’s Place U.S. had 711 stores and The Children’s Place International had 113 stores.
The following tables provide segment level financial information:
 Thirteen Weeks EndedTwenty-six Weeks Ended
 July 31,
2021		August 1,
2020		July 31,
2021		August 1,
2020
(in thousands)
Net sales(1):
  ]
The Children’s Place U.S.$372,319 $333,034 $771,978 $567,982 
The Children’s Place International (2)
41,536 35,889 77,358 56,148 
Total net sales$413,855 $368,923 $849,336 $624,130 
Operating income (loss)(1):
  
The Children’s Place U.S.$34,355 $(62,623)$98,267 $(221,959)
The Children’s Place International3,494 (1,861)5,489 (15,668)
Total operating income (loss)$37,849 $(64,484)$103,756 $(237,627)
Operating income (loss) as a percent of net sales(1):
  
The Children’s Place U.S.9.2 %(18.8)%12.7 %(39.1)%
The Children’s Place International8.4 %(5.2)%7.1 %(27.9)%
Total operating income (loss) as a percent of net sales9.1 %(17.5)%12.2 %(38.1)%
Depreciation and amortization:  
The Children’s Place U.S.$13,303 $15,594 $27,614 $31,780 
The Children’s Place International1,089 1,114 2,339 2,816 
Total depreciation and amortization$14,392 $16,708 $29,953 $34,596 
Capital expenditures:  
The Children’s Place U.S.$6,385 $8,433 $12,872 $13,633 
The Children’s Place International385 102 624 635 
Total capital expenditures$6,770 $8,535 $13,496 $14,268 
____________________________________________
(1)Net sales and operating income (loss) were significantly impacted by the COVID-19 pandemic in the Second Quarter 2020.
(2)Net sales from The Children’s Place International are primarily derived from revenues from Canadian operations. Our foreign subsidiaries, primarily in Canada, have operating results based in foreign currencies and are thus subject to the fluctuations of the corresponding translation rates into U.S. dollars.
July 31, 2021January 30, 2021August 1, 2020
Total assets:(in thousands)
The Children’s Place U.S.$1,036,830 $1,054,339 $1,088,348 
The Children’s Place International91,618 85,788 79,591 
Total assets$1,128,448 $1,140,127 $1,167,939