Segment Information

6 Months Ended

Jul. 30, 2016

Segment Information

18. Segment Information

As of July 30, 2016, our reportable segments include (1) retail stores (including online stores) and (2) International Retail Franchise (“Retail Franchise”). On July 15, 2016, the Company sold its Gymboree Play & Music segment and Gymboree Investment Holdings L.P. sold Gymboree Tianjin and Gymboree China, which were included under “VIEs” in our segment disclosure. As disclosed in Note 2, for the 26 weeks ended July 30, 2016 and for all historical periods presented, the results of Gymboree Play & Music and Gymboree Tianjin are presented as discontinued operations, while Gymboree China was deconsolidated as of July 15, 2016, the date of sale.

Our reportable segments were identified based on how our business is managed and evaluated by our chief operating decision maker, who is the Chief Executive Officer. The retail stores segment includes four operating segments (brands), which sell high-quality apparel for children: Gymboree Retail (including an online store), Gymboree Outlet, Janie and Jack (including an online store), and Crazy 8 (including an online store). These four operating segments have been aggregated into one reportable segment because these operating segments have similar historical economic characteristics and/or are expected to have similar economic characteristics and similar long-term financial performance in the future. Gross profit is the principal measure we consider in determining whether the economic characteristics are similar. In addition, each retail store segment has similar products, production processes and type and class of customer. Corporate overhead (costs related to our distribution centers and shared corporate services) is included in the retail stores segment.

Net sales and gross profit of each reportable segment were as follows for the periods ended (in thousands):

	26 Weeks Ended July 30, 2016
	Retail Stores		International Retail Franchise		Intersegment Elimination		Total
Net sales	$	515,593	$	7,594	$	—	$	523,187
Gross profit	$	191,721	$	4,060	$	—	$	195,781

	Year Ended January 30, 2016
	Retail Stores		International Retail Franchise		VIE		Intersegment Elimination			Total
Net sales	$	1,177,193	$	22,198	$	7,413	$	(665	)	$	1,206,139
Gross profit	$	439,325	$	12,248	$	2,473	$	(665	)	$	453,381
	Year Ended January 31, 2015
	Retail Stores		International Retail Franchise		VIE		Intersegment Elimination			Total
Net sales	$	1,172,626	$	19,907	$	5,850	$	(551	)	$	1,197,832
Gross profit	$	432,286	$	11,158	$	1,078	$	(551	)	$	443,971
	Year Ended February 1, 2014
	Stores		International Retail Franchise		VIE		Intersegment Elimination			Total
Net sales	$	1,191,498	$	22,252	$	5,678	$	(544	)	$	1,218,884
Gross profit	$	443,960	$	11,577	$	1,014	$	(544	)	$	456,007

Net retail sales of the retail stores segment by brand and VIE (Gymboree China) were as follows for the periods ended (in thousands):

	Gymboree (1)		Janie and Jack		Crazy 8		Total Before VIE		VIE		Total
26 weeks ended July 30, 2016	$	324,609	$	70,917	$	120,067	$	515,593	$	—	$	515,593
Year ended January 30, 2016	$	752,627	$	145,695	$	278,871	$	1,177,193	$	7,413	$	1,184,606
Year ended January 31, 2015	$	764,145	$	133,246	$	275,235	$	1,172,626	$	5,850	$	1,178,476
Year ended February 1, 2014	$	803,920	$	118,978	$	268,600	$	1,191,498	$	5,678	$	1,197,176

⁽¹⁾ This includes the net retail sales for Gymboree Retail and Gymboree Outlet operating segments.

Interest expense, depreciation and amortization expense and capital expenditures have not been separately disclosed above as the amounts primarily relate to the retail segment.

Total assets of each reportable segment, VIE (Gymboree China), and discontinued operations (Gymboree Play & Music and Gymboree Tianjin) were as follows as of the periods ended (in thousands):

	Retail		International Retail				Intersegment			Discontinued
	Stores		Franchise		VIE		Elimination			Operations		Total
July 30, 2016	$	1,151,745	$	26,767	$	—	$	—		$	—	$	1,178,512
January 30, 2016	$	1,027,622	$	28,791	$	8,114	$	(560	)	$	76,509	$	1,140,476
January 31, 2015	$	1,055,880	$	28,886	$	7,530	$	(621	)	$	73,175	$	1,164,850

We attribute retail store revenues to individual countries based on the selling location. For Gymboree International Retail Franchise, all sales were attributed to the U.S. geographic segment. VIE sales are attributable to the international geographic segment.

Net sales of our two geographical areas, United States and international, were as follows for the periods ended (in thousands):

	26 Weeks Ended		Year Ended
	July 30, 2016		January 30, 2016		January 31, 2015		February 1, 2014
United States	$	504,728	$	1,151,403	$	1,143,025	$	1,161,813
International		18,459		54,736		54,807		57,071
Total	$	523,187	$	1,206,139	$	1,197,832	$	1,218,884

Property and equipment, net, of our two geographical areas were as follows as of the periods ended (in thousands):

	July 30, 2016		January 30, 2016		January 31, 2015
United States	$	138,384	$	149,515	$	171,796
International		5,367		6,035		7,331
Total	$	143,751	$	155,550	$	179,127