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Segments

6 Months Ended

Jul. 31, 2019

Note 8 – Segments

The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale revenues also include royalty revenues from license agreements related to our owned trademarks including Donna Karan, DKNY, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of the Wilsons Leather, G.H. Bass and DKNY stores, substantially all of which are operated as outlet stores, as well as a smaller number of Karl Lagerfeld Paris and Calvin Klein Performance stores. Sales through the Company’s owned websites, with the exception of Vilebrequin, are also included in the retail operations segment.

The following segment information is presented for the three and six-month periods indicated below:


	Three Months Ended July 31, 2019
	Wholesale		Retail		Elimination ⁽¹⁾		Total
	(In thousands)
Net sales	$	588,601	$	83,706	$	(28,415)	$	643,892
Cost of goods sold		395,728		44,810		(28,415)		412,123
Gross profit		192,873		38,896		—		231,769
Selling, general and administrative expenses		141,540		54,908		—		196,448
Depreciation and amortization		7,763		2,026		—		9,789
Gain on lease terminations		—		(1,393)		—		(1,393)
Operating profit (loss)	$	43,570	$	(16,645)	$	—	$	26,925


	Three Months Ended July 31, 2018
	Wholesale		Retail		Elimination ⁽¹⁾		Total
	(In thousands)
Net sales	$	544,597	$	106,662	$	(26,561)	$	624,698
Cost of goods sold		362,756		56,959		(26,561)		393,154
Gross profit		181,841		49,703		—		231,544
Selling, general and administrative expenses		136,178		62,682		—		198,860
Depreciation and amortization		7,348		2,107		—		9,455
Operating profit (loss)	$	38,315	$	(15,086)	$	—	$	23,229


	Six Months Ended July 31, 2019
	Wholesale		Retail		Elimination ⁽¹⁾		Total
	(In thousands)
Net sales	$	1,159,240	$	165,610	$	(47,406)	$	1,277,444
Cost of goods sold		767,308		89,709		(47,406)		809,611
Gross profit		391,932		75,901		—		467,833
Selling, general and administrative expenses		288,797		109,510		—		398,307
Depreciation and amortization		15,284		3,978		—		19,262
Gain on lease terminations		—		(2,222)		—		(2,222)
Operating profit (loss)	$	87,851	$	(35,365)	$	—	$	52,486


	Six Months Ended July 31, 2018
	Wholesale		Retail		Elimination ⁽¹⁾		Total
	(In thousands)
Net sales	$	1,072,270	$	211,181	$	(47,010)	$	1,236,441
Cost of goods sold		704,331		113,049		(47,010)		770,370
Gross profit		367,939		98,132		—		466,071
Selling, general and administrative expenses		272,591		128,340		—		400,931
Depreciation and amortization		14,483		4,352		—		18,835
Operating profit (loss)	$	80,865	$	(34,560)	$	—	$	46,305

(1)Represents intersegment sales to the Company’s retail operations segment.

The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:


	July 31, 2019		July 31, 2018		January 31, 2019
	(In thousands)
Wholesale	$	2,109,198	$	1,880,348	$	1,834,610
Retail		362,595		205,268		190,996
Corporate		240,643		151,018		182,452
Total assets	$	2,712,436	$	2,236,634	$	2,208,058