SEGMENT INFORMATION

3 Months Ended

Apr. 30, 2022

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, www.gymboree.com, and www.sugarandjade.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 customers that individually account for more than 10% of its net sales. As of April 30, 2022, The Children’s Place U.S. had 583 stores and The Children’s Place International had 82 stores. As of May 1, 2021, The Children’s Place U.S. had 624 stores and The Children’s Place International had 100 stores.

The following tables provide segment level financial information:

	Thirteen Weeks Ended
	April 30, 2022		May 1, 2021
	(in thousands)
Net sales:
The Children’s Place U.S.	$	327,961	$	399,659
The Children’s Place International (1)	34,389		35,822
Total net sales	$	362,350	$	435,481
Operating income:
The Children’s Place U.S.	$	16,869	$	63,912
The Children’s Place International	2,385		1,995
Total operating income	$	19,254	$	65,907
Operating income as a percentage of net sales:
The Children’s Place U.S.	5.1%		16.0%
The Children’s Place International	6.9%		5.6%
Total operating income as a percentage of net sales	5.3%		15.1%
Depreciation and amortization:
The Children’s Place U.S.	$	12,587	$	14,311
The Children’s Place International	1,028		1,250
Total depreciation and amortization	$	13,615	$	15,561
Capital expenditures:
The Children’s Place U.S.	$	10,357	$	6,487
The Children’s Place International	366		239
Total capital expenditures	$	10,723	$	6,726

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(1)Net sales from The Children’s Place International are primarily derived from Canadian operations. The Company’s 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.