Note 5 - Business Segment Information

9 Months Ended

Mar. 31, 2013

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 a portion of our 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 (in thousands):

	Three Months Ended March 31						Nine Months Ended March 31
	2013			2012			2013			2012
Net sales:
Accessories	$	18,298		$	22,158		$	59,693		$	66,402
Gifts		1,284			1,704			33,674			29,637
	$	19,582		$	23,862		$	93,367		$	96,039
Segment (loss) income:
Accessories(1)	$	2,763		$	4,703		$	6,417		$	14,086
Gifts(2)		(1,327	)		(962	)		(576	)		3,657
		1,436			3,741			5,841			17,743
Selling, general and administrative expenses		(3,789	)		(5,984	)		(13,440	)		(16,223	)
Depreciation and amortization		(466	)		(549	)		(1,434	)		(1,699	)
Intangibles and held for sale impairment		(3,006	)		-			(3,006	)		-
Restructuring charges		(2,575	)		-			(2,575	)		-
Operating loss	$	(8,400	)	$	(2,792	)	$	(14,614	)	$	(179	)

(1)   Accessories segment income for the nine months ended March 31, 2013 includes inventory write-downs of $4.9 million.  Excluding these write-downs, accessories segment income would have been $11.3 million for the nine months ended March 31, 2013.

(2)   Gifts segment (loss) income for the nine months ended March 31, 2013 includes inventory write-downs of $1.8 million.  Excluding these write-downs, gifts segment income would have been $1.2 million for the nine months ended March 31, 2013.