Segment Reporting

6 Months Ended

Aug. 04, 2019

10. SEGMENT REPORTING

The Company has two operating segments, which are also its reportable segments: direct and retail. The direct segment includes net sales from the Company’s website and catalogs. The retail segment includes net sales from the Company’s retail and outlet stores. These two operating segments are components of the Company for which separate financial information is available and for which operating results are evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance of the segments.

Income tax expense, and corporate expenses, which include but are not limited to: human resources, legal, finance, information technology, design and other corporate-related expenses are included in the Company’s direct segment. Interest expense, depreciation and amortization, and property and equipment expenditures, are recognized in each segment. Advertising expenses are generally included in the Company’s direct segment, except for specific store advertising, which is included in the Company’s retail segment.

Net sales outside of the United States were insignificant. Variable allocations of assets are not made for segment reporting. The Company does not have any assets outside of the United States.

Segment information is presented in the following table:


	Three Months Ended				Six Months Ended
	August 4, 2019		July 29, 2018		August 4, 2019		July 29, 2018
(in thousands)
Net sales
Direct	$	60,267	$	60,833	$	125,968	$	127,045
Retail		61,696		49,820		110,239		83,815
Total net sales	$	121,963	$	110,653	$	236,207	$	210,860
Operating income (loss)
Direct	$	(4,146)	$	1,123	$	(16,825)	$	(1,005)
Retail		7,881		8,773		10,456		10,644
Total operating income (loss)		3,735		9,896		(6,369)		9,639
Interest expense		1,203		1,234		1,631		2,055
Other (loss) income, net		(8)		2		196		165
Income (loss) before income taxes	$	2,524	$	8,664	$	(7,804)	$	7,749

Net sales by business is presented in the following table:


	Three Months Ended				Six Months Ended
	August 4, 2019		July 29, 2018		August 4, 2019		July 29, 2018
(in thousands)
Net sales
Men's	$	80,090	$	75,434	$	155,890	$	143,354
Women's		35,742		29,625		67,915		56,785
Hard goods/other		6,131		5,594		12,402		10,721
Total net sales	$	121,963	$	110,653	$	236,207	$	210,860

Segment total assets is presented in the following table:


	August 4, 2019		February 3, 2019
(in thousands)
Direct	$	221,542	$	181,429
Retail		212,553		113,876
Total assets at period end	$	434,095	$	295,305