Note 5 - Business Segment Information

6 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

Note 5 - Business Segment Information

We sell our products through all major retail distribution channels throughout North America, including, without limitation, mass merchants, national chain stores, department stores, specialty stores, catalog retailers, golf pro shops, sporting goods stores, and the retail exchange operations of the United States military.  Our business segments are based on product categories: (1) accessories, which include belts, small leather goods and bags, and (2) gifts.  Each segment is measured by management based on income consisting of net sales less cost of goods sold, product distribution expenses, and royalties utilizing accounting policies consistent in all material respects with those described in Note 2 of the notes to consolidated financial statements included in our 2012 Annual Report on Form 10-K filed with the Securities and Exchange Commission.  No inter-segment revenue is recorded.  Assets, related depreciation and amortization, and selling, general and administrative expenses are not allocated to the segments.

The following table presents operating information by segment and reconciliation of segment (loss) income to our consolidated operating (loss) income (in thousands):

	Three Months Ended December 31						Six Months Ended December 31
	2012			2011			2012			2011
Net sales:
Accessories	$	21,407		$	22,732		$	41,395		$	44,244
Gifts		26,507			22,702			32,390			27,933
	$	47,914		$	45,434		$	73,785		$	72,177
Segment (loss) income:
Accessories(1)	$	(612	)	$	4,859		$	3,654		$	9,383
Gifts(2)		630			3,804			751			4,619
		18			8,663			4,405			14,002
Selling, general and administrative expenses		(4,589	)		(4,912	)		(9,651	)		(10,239	)
Depreciation and amortization		(485	)		(567	)		(968	)		(1,150	)
Operating (loss) income	$	(5,056	)	$	3,184		$	(6,214	)	$	2,613

(1)   Accessories segment (loss) income for the three and six months ended December 31, 2012 includes inventory write-downs of $4.9 million.  Excluding these write-downs, accessories segment income would have been $4.3 million and $8.6 million for the three and six months ended December 31, 2012, respectively.

(2)   Gifts segment income for the three and six months ended December 31, 2012 includes inventory write-downs of $1.8 million.  Excluding these write-downs, gifts segment income would have been $2.4 million and $2.6 million for the three and six months ended December 31, 2012, respectively.