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Business Segment Information
 9 Months Ended
Nov. 03, 2018
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

During the nine months ended November 3, 2018 and October 28, 2017, the Company operated five reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (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 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 H.S. Trask® brands; and (v) Licensed Brands, comprised of Dockers® Footwear, sourced and marketed under a license from Levi Strauss & Company; G.H. Bass Footwear operated under a license from G-III Apparel Group, Ltd., which was terminated in January 2018; 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, under Item 8 in the Company's Annual Report on Form10-K for the fiscal year ended February 3, 2018).

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 on revolver debt 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, bank fees, interest expense, interest income, asset impairment charges and other, including major litigation, major lease terminations and trademark and goodwill impairment charges.

Note 9
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
November 3, 2018
Journeys Group
 
Schuh Group
 
Lids Sports
Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
 
Sales
$
345,702

 
$
95,567

 
$
173,241

 
$
79,736

 
$
18,757

 
$
66

 
$
713,069

Intercompany Sales
—

 
—

 
—

 
—

 
—

 
—

 
—

Net sales to external customers
$
345,702

 
$
95,567

 
$
173,241

 
$
79,736

 
$
18,757

 
$
66

 
$
713,069

Segment operating income (loss)
$
25,232

 
$
4,207

 
$
(388
)
 
$
5,215

 
$
(189
)
 
$
(8,048
)
 
$
26,029

Asset Impairments and other*
—

 
—

 
—

 
—

 
—

 
(6,558
)
 
(6,558
)
Earnings (loss) from operations
25,232

 
4,207

 
(388
)
 
5,215

 
(189
)
 
(14,606
)
 
19,471

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
—

 
2

 
2

Interest expense
—

 
—

 
—

 
—

 
—

 
(984
)
 
(984
)
Interest income
—

 
—

 
—

 
—

 
—

 
147

 
147

Earnings (loss) from continuing
operations before income taxes
$
25,232

 
$
4,207

 
$
(388
)
 
$
5,215

 
$
(189
)
 
$
(15,441
)
 
$
18,636

Total assets**
$
501,281

 
$
233,664

 
$
369,030

 
$
133,508

 
$
25,319

 
$
167,911

 
$
1,430,713

Depreciation and amortization***
7,075

 
3,443

 
6,389

 
1,654

 
160

 
430

 
19,151

Capital expenditures
7,244

 
1,932

 
4,252

 
2,384

 
28

 
242

 
16,082


*Asset Impairments and other charge includes a $5.7 million charge for trademark impairment for Lids Sports Group, $1.5 million charge for asset impairments, which includes $0.8 million for Lids Sports Group, $0.6 million for Schuh Group and $0.1 million for Journeys Group, and a $0.2 million charge for hurricane losses, partially offset by a $(0.9) million gain related to Hurricane Maria.

**Total assets for the Schuh Group and Journeys Group include $82.6 million and $9.8 million of goodwill, respectively. Goodwill for the Schuh Group and Journeys Group decreased by $7.3 million and $0.6 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $361.9 million of property and equipment, $48.3 million and $20.5 million relate to property and equipment in the United Kingdom and Canada, respectively.

***Includes $19.1 million in depreciation expense for the three months ended November 3, 2018.




















Note 9
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
October 28, 2017
Journeys Group
 
Schuh Group
 
Lids Sports
Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
 
Sales
$
333,506

 
101,489

 
$
181,347

 
$
74,132

 
$
26,208

 
$
77

 
$
716,759

Intercompany Sales
—

 
—

 
—

 
—

 
—

 
—

 
—

Net sales to external customers
$
333,506

 
$
101,489

 
$
181,347

 
$
74,132

 
$
26,208

 
$
77

 
$
716,759

Segment operating income (loss)
$
24,283

 
$
7,054

 
$
1,991

 
$
5,287

 
$
1,153

 
$
(8,489
)
 
$
31,279

Goodwill impairment*
—

 
—

 
—

 
—

 
—

 
(182,211
)
 
(182,211
)
Asset Impairments and other**
—

 
—

 
—

 
—

 
—

 
(1,446
)
 
(1,446
)
Earnings (loss) from operations
24,283

 
7,054

 
1,991

 
5,287

 
1,153

 
(192,146
)
 
(152,378
)
Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
—

 
(21
)
 
(21
)
Interest expense
—

 
—

 
—

 
—

 
—

 
(1,454
)
 
(1,454
)
Interest income
—

 
—

 
—

 
—

 
—

 
(3
)
 
(3
)
Earnings (loss) from continuing
operations before income taxes
$
24,283

 
$
7,054

 
$
1,991

 
$
5,287

 
$
1,153

 
$
(193,624
)
 
$
(153,856
)
Total assets***
$
524,563

 
248,336

 
$
396,877

 
$
128,651

 
$
34,817

 
$
165,239

 
$
1,498,483

Depreciation and amortization****
6,385

 
3,443

 
6,609

 
1,565

 
166

 
816

 
18,984

Capital expenditures
21,772

 
2,124

 
8,438

 
1,929

 
227

 
2,237

 
36,727


*Goodwill impairment charge of $182.2 million relates to Lids Sports Group.

**Asset Impairments and other charge includes a $0.9 million charge for losses related to Hurricane Maria and a $0.5 million charge for asset impairments, which includes $0.2 million each for Journeys Group and Lids Sports Group and $0.1 million for Schuh Group.

***Total assets for the Schuh Group and Journeys Group include $83.4 million and $10.0 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group increased by $3.7 million and $0.2 million, respectively, from January 28, 2017, due to foreign currency translation adjustments. Of the Company's $378.5 million of property and equipment, $54.3 million and $21.4 million relate to property and equipment in the United Kingdom and Canada, respectively.

****Includes $18.9 million in depreciation expense for the three months ended October 28, 2017.


















Note 9
Business Segment Information, Continued

Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
November 3, 2018
Journeys Group
 
Schuh Group
 
Lids Sports
Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
 
Sales
$
956,839

 
$
273,992

 
$
498,858

 
$
223,861

 
$
58,161

 
$
212

 
$
2,011,923

Intercompany Sales
—

 
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Net sales to external customers
$
956,839

 
$
273,992

 
$
498,858

 
$
223,861

 
$
58,158

 
$
212

 
$
2,011,920

Segment operating income (loss)
$
46,530

 
$
(360
)
 
$
(4,598
)
 
$
11,149

 
$
(279
)
 
$
(24,309
)
 
$
28,133

Asset Impairments and other*
—

 
—

 
—

 
—

 
—

 
(9,149
)
 
(9,149
)
Earnings (loss) from operations
46,530

 
(360
)
 
(4,598
)
 
11,149

 
(279
)
 
(33,458
)
 
18,984

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
—

 
(17
)
 
(17
)
Interest expense
—

 
—

 
—

 
—

 
—

 
(3,144
)
 
(3,144
)
Interest income
—

 
—

 
—

 
—

 
—

 
176

 
176

Earnings (loss) from continuing
operations before income taxes
$
46,530

 
$
(360
)
 
$
(4,598
)
 
$
11,149

 
$
(279
)
 
$
(36,443
)
 
$
15,999

Total assets**
$
501,281

 
$
233,664

 
$
369,030

 
$
133,508

 
$
25,319

 
$
167,911

 
$
1,430,713

Depreciation and amortization***
20,756

 
10,903

 
19,641

 
4,814

 
476

 
1,479

 
58,069

Capital expenditures
21,640

 
5,907

 
12,978

 
5,352

 
109

 
1,222

 
47,208

 
 
 
 
 
 
 
 
 
 
 
 
 
 

*Asset Impairments and other charge includes a $5.7 million charge for trademark impairment for Lids Sports Group, $3.7 million charge for asset impairments, which includes $0.6 million for Journeys Group, $1.7 million for Lids Sports Group and $1.4 million for Schuh Group, a $1.0 million charge for legal and other matters and $0.2 million for hurricane losses, partially offset by a $(1.5) million gain related to Hurricane Maria.

**Total assets for the Schuh Group and Journeys Group include $82.6 million and $9.8 million of goodwill, respectively. Goodwill for the Schuh Group and Journeys Group decreased by $7.3 million and $0.6 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $361.9 million of property and equipment, $48.3 million and $20.5 million relate to property and equipment in the United Kingdom and Canada, respectively.

***Includes $57.9 million in depreciation expense for the nine months ended November 3, 2018.



















Note 9
Business Segment Information, Continued

Nine Months Ended
 
 
 
 
 
 
 
 
 
 
 
 
 
October 28, 2017
Journeys Group
 
Schuh Group
 
Lids Sports
Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
 
Sales
876,578

 
275,570

 
538,478

 
211,785

 
73,915

 
307

 
$
1,976,633

Intercompany Sales
—

 
—

 
—

 
—

 
—

 
—

 
—

Net sales to external customers
$
876,578

 
$
275,570

 
$
538,478

 
$
211,785

 
$
73,915

 
$
307

 
$
1,976,633

Segment operating income (loss)
29,561

 
10,905

 
3,245

 
10,654

 
2,377

 
(24,446
)
 
$
32,296

Goodwill impairment*
—

 
—

 
—

 
—

 
—

 
(182,211
)
 
(182,211
)
Asset Impairments and other**
—

 
—

 
—

 
—

 
—

 
(1,623
)
 
(1,623
)
Earnings (loss) from operations
29,561

 
10,905

 
3,245

 
10,654

 
2,377

 
(208,280
)
 
(151,538
)
Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
—

 
(77
)
 
(77
)
Interest expense
—

 
—

 
—

 
—

 
—

 
(3,883
)
 
(3,883
)
Interest income
—

 
—

 
—

 
—

 
—

 
—

 
—

Earnings (loss) from continuing
operations before income taxes
$
29,561

 
$
10,905

 
$
3,245

 
$
10,654

 
$
2,377

 
$
(212,240
)
 
$
(155,498
)
Total assets***
524,563

 
248,336

 
396,877

 
128,651

 
34,817

 
165,239

 
$
1,498,483

Depreciation and amortization****
19,208

 
10,190

 
20,278

 
4,709

 
503

 
2,642

 
57,530

Capital expenditures
65,623

 
7,555

 
23,410

 
4,440

 
388

 
2,647

 
104,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 

*Goodwill impairment charge of $182.2 million relates Lids Sports Group.

**Asset Impairments and other charge includes a $0.9 million charge for losses related to Hurricane Maria and a $0.7 million charge for asset impairments, which includes $0.3 million each for Journeys Group and Lids Sports Group and $0.1 million for Schuh Group.

***Total assets for Schuh Group and Journeys Group include $83.4 million and $10.0 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group increased by $3.7 million and $0.2 million, respectively, from January 28, 2017, due to foreign currency translation adjustments. Of the Company's $378.5 million of property and equipment, $54.3 million and $21.4 million relate to property and equipment in the United Kingdom and Canada, respectively.

****Includes $57.3 million in depreciation expense for the nine months ended October 28, 2017.