SEGMENTS |
NOTE M — SEGMENTS The Company’s reportable segments are business units that offer products through different channels of distribution. 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 revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, consisting primarily of 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, in thousands, is presented for the fiscal years ended: | | | | | | | | | | | | | | | January 31, 2020 | | | Wholesale | | Retail | | Elimination (1) | | Total | Net sales | | $ | 2,862,889 | | $ | 385,910 | | $ | (88,335) | | $ | 3,160,464 | Cost of goods sold | | | 1,925,062 | | | 205,797 | | | (88,335) | | | 2,042,524 | Gross profit | | | 937,827 | | | 180,113 | | | — | | | 1,117,940 | Selling, general and administrative expenses | | | 604,377 | | | 227,803 | | | — | | | 832,180 | Depreciation and amortization | | | 30,806 | | | 7,929 | | | — | | | 38,735 | Asset impairments, net of gain on lease terminations | | | 412 | | | 18,959 | | | — | | | 19,371 | Operating profit (loss) | | $ | 302,232 | | $ | (74,578) | | $ | — | | $ | 227,654 |
| | | | | | | | | | | | | | | January 31, 2019 | | | Wholesale | | Retail | | Elimination (1) | | Total | Net sales | | $ | 2,716,958 | | $ | 476,764 | | $ | (117,514) | | $ | 3,076,208 | Cost of goods sold | | | 1,837,335 | | | 249,278 | | | (117,514) | | | 1,969,099 | Gross profit | | | 879,623 | | | 227,486 | | | — | | | 1,107,109 | Selling, general and administrative expenses | | | 570,290 | | | 264,473 | | | — | | | 834,763 | Depreciation and amortization | | | 29,644 | | | 9,175 | | | — | | | 38,819 | Asset impairments | | | — | | | 2,813 | | | — | | | 2,813 | Operating profit (loss) | | $ | 279,689 | | $ | (48,975) | | $ | — | | $ | 230,714 |
| | | | | | | | | | | | | | | January 31, 2018 | | | Wholesale | | Retail | | Elimination (1) | | Total | Net sales | | $ | 2,454,008 | | $ | 502,494 | | $ | (149,564) | | $ | 2,806,938 | Cost of goods sold | | | 1,650,084 | | | 251,679 | | | (149,564) | | | 1,752,199 | Gross profit | | | 803,924 | | | 250,815 | | | — | | | 1,054,739 | Selling, general and administrative expenses | | | 571,164 | | | 284,083 | | | — | | | 855,247 | Depreciation and amortization | | | 27,679 | | | 10,104 | | | — | | | 37,783 | Asset impairments | | | 2,310 | | | 5,574 | | | — | | | 7,884 | Operating profit (loss) | | $ | 202,771 | | $ | (48,946) | | $ | — | | $ | 153,825 |
(1) | Represents intersegment sales to the Company’s retail operations segment. |
The Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels, and relative sales levels, among other factors. The method of allocation has been applied consistently on a year-to-year basis. The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: | | | | | | | | | January 31, | | January 31, | | | 2020 | | 2019 | | | (In thousands) | Wholesale | | $ | 1,912,175 | | $ | 1,834,610 | Retail | | | 272,832 | | | 190,996 | Corporate | | | 380,130 | | | 182,452 | Total Assets | | $ | 2,565,137 | | $ | 2,208,058 |
The total net sales and long-lived assets by geographic region are as follows: | | | | | | | | | | | | | | | | | | | | | 2020 | | 2019 | | 2018 | | | | | | Long-Lived | | | | | Long-Lived | | | | | Long-Lived | Geographic Region | | Net Sales | | Assets | | Net Sales | | Assets | | Net Sales | | Assets | United States | | $ | 2,774,492 | | $ | 964,476 | | $ | 2,656,479 | | $ | 762,444 | | $ | 2,466,107 | | $ | 770,128 | Non-United States | | | 385,972 | | | 231,973 | | | 419,729 | | | 191,719 | | | 340,831 | | | 185,448 | | | $ | 3,160,464 | | $ | 1,196,449 | | $ | 3,076,208 | | $ | 954,163 | | $ | 2,806,938 | | $ | 955,576 |
Capital expenditures for locations outside of the United States totaled $4.6 million, $4.3 million and $3.7 million for the years ended January 31, 2020, 2019 and 2018, respectively.
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