Business Segment Information

During the nine months ended October 31, 2015 and November 1, 2014, the Company operated five reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz, Shi by Journeys and Underground by Journeys retail footwear chains, e-commerce operations and catalog; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Lids Sports Group, comprised primarily of the Lids retail headwear stores, the Lids Locker Room and Lids Clubhouse fan shops (operated under various trade names), licensed team merchandise departments in Macy's department stores operated under the name of Locker Room by Lids under a license agreement with Macy's, the Lids Team Sports business and certain e-commerce operations; (iv) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog and wholesale distribution of products under the Johnston & Murphy and Trask brands; and (v) Licensed Brands, comprised of Dockers Footwear, sourced and marketed under a license from Levi Strauss & Company; SureGrip Footwear, occupational footwear primarily sold directly to consumers; and other brands.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1).

The Company's reportable segments are based on management's organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group, Schuh Group and Lids Sports Group sell primarily branded products from other companies while Johnston & Murphy Group and Licensed Brands sell primarily the Company's owned and licensed brands.

Corporate assets include cash, domestic prepaid rent expense, prepaid income taxes, deferred income taxes, deferred note expense and corporate fixed assets. The Company charges allocated retail costs of distribution to each segment. The Company does not allocate certain costs to each segment in order to make decisions and assess performance. These costs include corporate overhead, interest expense, interest income, asset impairment charges and other, including major litigation and major lease terminations.

Note 10

Business Segment Information, Continued



Three Months Ended
October 31, 2015	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
Sales	$	321,996	$	101,644	$	247,178		$	70,416	$	32,800		$	276		$	774,310
Intercompany Sales	—		—		(211		)	—		(201		)	—			(412		)
Net sales to external customers	$	321,996	$	101,644	$	246,967		$	70,416	$	32,599		$	276		$	773,898
Segment operating income (loss)	$	38,944	$	8,649	$	4,704		$	4,637	$	3,345		$	(8,078	)	$	52,201
Asset Impairments and other*	—		—		—			—		—			(151		)	(151		)
Earnings (loss) from operations	38,944		8,649		4,704			4,637		3,345			(8,229		)	52,050
Interest expense	—		—		—			—		—			(1,314		)	(1,314		)
Interest income	—		—		—			—		—			(16		)	(16		)
Earnings (loss) from continuing operations before income taxes	$	38,944	$	8,649	$	4,704		$	4,637	$	3,345		$	(9,559	)	$	50,720
Total assets**	$	407,708	$	283,121	$	723,374		$	122,572	$	47,719		$	159,210		$	1,743,704
Depreciation and amortization	5,627		3,603		7,196			1,478		240			1,150			19,294
Capital expenditures	12,164		5,505		10,868			2,247		377			364			31,525

*Asset Impairments and other includes a $0.1 million charge for asset impairments, which relates to the Lids Sports Group, and a $0.1 million charge for network intrusion expenses.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $199.8 million, $98.4 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill decreased by $2.4 million from January 31, 2015 due to foreign currency translation adjustments. Of the Company's $322.1 million of property and equipment, $65.9 million and $13.7 million relate to property and equipment in the United Kingdom and Canada, respectively.

Note 10

Business Segment Information, Continued



Three Months Ended
November 1, 2014	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
Sales	$	303,781	101,959		$	220,223		$	65,965	$	31,183		$	191		$	723,302
Intercompany Sales	—		—		(185		)	—		(202		)	—			(387		)
Net sales to external customers	$	303,781	$	101,959	$	220,038		$	65,965	$	30,981		$	191		$	722,915
Segment operating income (loss)	$	35,047	$	3,949	$	8,606		$	4,505	$	3,082		$	(7,593	)	$	47,596
Asset Impairments and other*	—		—		—			—		—			(1,036		)	(1,036		)
Earnings (loss) from operations	35,047		3,949		8,606			4,505		3,082			(8,629		)	46,560
Indemnification asset write-off	—		—		—			—		—			(7,050		)	(7,050		)
Interest expense	—		—		—			—		—			(914		)	(914		)
Interest income	—		—		—			—		—			23			23
Earnings (loss) from continuing operations before income taxes	$	35,047	$	3,949	$	8,606		$	4,505	$	3,082		$	(16,570	)	$	38,619
Total assets**	$	345,011	283,052		$	746,747		$	113,178	$	46,127		$	135,130		$	1,669,245
Depreciation and amortization	5,311		3,551		7,704			1,284		215			941			19,006
Capital expenditures	7,076		6,475		15,458			2,173		146			1,252			32,580

*Asset Impairments and other includes a $0.4 million charge for assets impairments, which relates to the Lids Sports Group, and a $0.6 million charge for network intrusion expenses.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $201.9 million, $101.9 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill decreased by $3.0 million from February 1, 2014 due to foreign currency translation adjustments. Goodwill for the Lids Sports Group includes $19.5 million added since February 1, 2014 from several small acquisitions. Of the Company's $314.7 million of property and equipment, $68.7 million and $16.3 million relate to property and equipment in the United Kingdom and Canada, respectively.

Note 10

Business Segment Information, Continued



Nine Months Ended
October 31, 2015	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands	Journeys Group		Schuh Group		Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
Sales	$	847,805	$	283,410	$	676,193		$	197,600	$	85,696		$	573		$	2,091,277
Intercompany Sales	—		—		(679		)	—		(578		)	—			(1,257		)
Net sales to external customers	$	847,805	$	283,410	$	675,514		$	197,600	$	85,118		$	573		$	2,090,020
Segment operating income (loss)	$	72,594	$	10,880	$	6,900		$	9,460	$	7,526		$	(22,590	)	$	84,770
Asset Impairments and other*	—		—		—			—		—			(3,970		)	(3,970		)
Earnings (loss) from operations	72,594		10,880		6,900			9,460		7,526			(26,560		)	80,800
Interest expense	—		—		—			—		—			(2,919		)	(2,919		)
Interest income	—		—		—			—		—			16			16
Earnings (loss) from continuing operations before income taxes	$	72,594	$	10,880	$	6,900		$	9,460	$	7,526		$	(29,463	)	$	77,897
Total assets**	$	407,708	$	283,121	$	723,374		$	122,572	$	47,719		$	159,210		$	1,743,704
Depreciation and amortization	16,415		10,891		22,427			4,234		667			3,535			58,169
Capital expenditures	25,939		11,541		31,356			6,735		706			1,519			77,796

*Asset Impairments and other includes a $2.1 million charge for network intrusion expense, a $1.8 million charge for asset impairments, of which $1.3 million is in the Lids Sports Group and $0.4 million is in the Schuh Group, and a $0.1 million charge for other legal matters.

Note 10

Business Segment Information, Continued



Nine Months Ended
November 1, 2014	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
Sales	$	802,742	283,005			$	609,087		$	184,357	$	88,338		$	754		$	1,968,283
Intercompany Sales	—		—			(466		)	—		(603		)	—			(1,069		)
Net sales to external customers	$	802,742	$	283,005		$	608,621		$	184,357	$	87,735		$	754		$	1,967,214
Segment operating income (loss)	$	61,544	$	(1,389	)	$	25,217		$	8,577	$	8,476		$	(20,716	)	$	81,709
Asset Impairments and other*	—		—			—			—		—			(1,347		)	(1,347		)
Earnings (loss) from operations	61,544		(1,389		)	25,217			8,577		8,476			(22,063		)	80,362
Indemnification asset write-off	—		—			—			—		—			(7,050		)	(7,050		)
Interest expense	—		—			—			—		—			(2,447		)	(2,447		)
Interest income	—		—			—			—		—			73			73
Earnings (loss) from continuing operations before income taxes	$	61,544	$	(1,389	)	$	25,217		$	8,577	$	8,476		$	(31,487	)	$	70,938
Total assets**	$	345,011	283,052			$	746,747		$	113,178	$	46,127		$	135,130		$	1,669,245
Depreciation and amortization	15,160		10,756			21,834			3,572		518			2,915			54,755
Capital expenditures	21,682		18,688			33,897			7,045		636			3,369			85,317

*Asset Impairments and other includes a $2.4 million charge for network intrusion expenses, a $1.6 million charge for asset impairments, which relates to Lids Sports Group, and a $0.7 million charge for other legal matters, partially offset by a gain of $(3.4) million for a lease termination of a Lids store.