SEGMENT INFORMATION |
SEGMENT INFORMATION
At the beginning of fiscal 2017, the Company combined its Carter's Retail and OshKosh Retail into a single U.S. Retail operating segment, and its Carter's Wholesale and OshKosh Wholesale into a single U.S. Wholesale operating segment, in order to reflect the sales-channel approach the Company's executive management now uses to evaluate its business performance and manage operations in the U.S. The Company's International segment was not affected by these changes. The Company's reportable segments are now U.S. Retail, U.S. Wholesale, and International.
Prior periods have been conformed to reflect the Company's current segment structure by adding together Carter's Retail and OshKosh Retail as U.S. Retail and Carter's Wholesale and OshKosh Wholesale as U.S. Wholesale. Prior results for the International segment and Corporate expenses were not impacted.
The table below presents certain information for our reportable segments and unallocated corporate expenses for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal quarter ended | | Two fiscal quarters ended | (dollars in thousands) | July 1, 2017 | | % of Total Net Sales | | July 2, 2016 | | % of Total Net Sales | | July 1, 2017 | | % of Total Net Sales | | July 2, 2016 | | % of Total Net Sales | Net sales: | | | | | | | | | | | | | | | | U.S. Wholesale | $ | 217,710 |
| | 31.5 | % | | $ | 215,122 |
| | 33.6 | % | | $ | 510,265 |
| | 35.8 | % | | $ | 507,176 |
| | 37.2 | % | U.S. Retail (a) | 391,822 |
| | 56.6 | % | | 352,782 |
| | 55.2 | % | | 755,593 |
| | 53.0 | % | | 706,871 |
| | 51.8 | % | International (b) | 82,585 |
| | 11.9 | % | | 71,567 |
| | 11.2 | % | | 159,014 |
| | 11.2 | % | | 149,509 |
| | 11.0 | % | Total net sales | $ | 692,117 |
| | 100.0 | % | | $ | 639,471 |
| | 100.0 | % | | $ | 1,424,872 |
| | 100.0 | % | | $ | 1,363,556 |
| | 100.0 | % | | | | | | | | | | | | | | | | | Operating income (loss): | | | % of Segment Net Sales | | | | % of Segment Net Sales | | | | % of Segment Net Sales | | | | % of Segment Net Sales | U.S. Wholesale (g) | $ | 35,806 |
| | 16.4 | % | | $ | 41,509 |
| | 19.3 | % | | $ | 105,501 |
| | 20.7 | % | | $ | 109,920 |
| | 21.7 | % | U.S. Retail (a) (g) | 42,342 |
| | 10.8 | % | | 36,952 |
| | 10.5 | % | | 72,242 |
| | 9.6 | % | | 76,421 |
| | 10.8 | % | International (b) (g) | 7,597 |
| | 9.2 | % | | 9,105 |
| | 12.7 | % | | 11,282 |
| | 7.1 | % | | 17,546 |
| | 11.7 | % | Corporate expenses (c) (d) (e) (f) | (21,224 | ) | |
|
| | (24,323 | ) | |
|
| | (45,938 | ) | |
|
| | (47,636 | ) | |
|
| Total operating income | $ | 64,521 |
| | 9.3 | % | | $ | 63,243 |
| | 9.9 | % | | $ | 143,087 |
| | 10.0 | % | | $ | 156,251 |
| | 11.5 | % |
| | (a) | Includes retail store and eCommerce results. |
| | (b) | Net sales include international retail, eCommerce, and wholesale sales. |
| | (c) | Corporate expenses include expenses related to incentive compensation, stock-based compensation, executive management, severance and relocation, finance, office occupancy, information technology, certain legal fees, consulting, and audit fees. |
| | (d) | Includes expenses related to the amortization of the H.W. Carter and Sons tradenames of approximately $0.8 million and $1.7 million for the fiscal quarter and two fiscal quarters ended July 2, 2016, respectively. |
| | (e) | Includes acquisition-related expenses of approximately $0.6 million and $1.8 million for fiscal quarter the two fiscal quarters ended July 1, 2017, respectively. |
| | (f) | Includes charges related to the Company's direct sourcing initiative of approximately $0.1 and $0.3 million for the fiscal quarter and two fiscal quarters ended July 1, 2017, respectively. |
| | (g) | A total of $0.4 million of certain costs related to inventory acquired from Skip Hop is included in operating income between U.S. Wholesale, U.S. Retail, and International for the fiscal quarter and two fiscal quarters ended July 1, 2017. |
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