Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail, Americas Wholesale, Europe, Asia and Licensing. The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia operating segment are separate operating segments based on region, which have been aggregated into the Asia reportable segment for disclosure purposes. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, net gains (losses) from lease terminations, asset impairment charges, restructuring charges, and other non-recurring charges, if any. The Company believes this segment reporting reflects how its business segments are managed and how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The Americas Retail segment includes the Company’s retail and e-commerce operations in the Americas. The Americas Wholesale segment includes the Company’s wholesale operations in the Americas. The Europe segment includes the Company’s retail, e-commerce and wholesale operations in Europe and the Middle East. The Asia segment includes the Company’s retail, e-commerce and wholesale operations in Asia and the Pacific. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, net gains (losses) on lease terminations, asset impairment charges and restructuring charges and certain non-recurring charges, if any. Corporate overhead costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, corporate performance-based compensation, facilities, global advertising and marketing, human resources, information technology and legal.

Net revenue and earnings (loss) from operations are summarized as follows for the three months ended May 4, 2019 and May 5, 2018 (in thousands):



	Three Months Ended
	May 4, 2019			May 5, 2018
Net revenue:
Americas Retail	$	176,423		$	171,340
Americas Wholesale	46,205			40,679
Europe	210,055			205,435
Asia	85,190			84,051
Licensing	18,818			19,784
Total net revenue	$	536,691		$	521,289
Earnings (loss) from operations:
Americas Retail	$	(1,812	)	$	(5,680	)
Americas Wholesale	7,814			6,026
Europe	(16,327		)	(20,333		)
Asia	(3,203		)	4,065
Licensing	16,644			17,486
Total segment earnings from operations	3,116			1,564
Corporate overhead	(25,812		)	(25,845		)
Asset impairment charges¹	(1,775		)	(759		)
Net gains on lease terminations²	—			152
Total loss from operations	$	(24,471	)	$	(24,888	)

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Notes:


¹	During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. Refer to Note 15 for more information regarding these asset impairment charges.


²	During the three months ended May 5, 2018, the Company recorded net gains on lease terminations related primarily to the early termination of certain lease agreements in North America.

The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):



	Three Months Ended
	May 4, 2019		May 5, 2018
Net revenue:
U.S.	$	164,371	$	153,310
Italy	50,435		57,671
Canada	38,581		39,520
South Korea	33,917		37,632
Other foreign countries	230,569		213,372
Total product sales	517,873		501,505
Net royalties	18,818		19,784
Net revenue	$	536,691	$	521,289

Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year.