Segment Information

3 Months Ended

Apr. 30, 2022

Segment Reporting [Abstract]

Segment Information

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, asset impairment charges, net gains (losses) on lease modifications, restructuring charges and certain non-recurring credits (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.

Net revenue and earnings (loss) from operations are summarized (in thousands):

	Three Months Ended
	Apr 30, 2022		May 1, 2021
Net revenue:
Americas Retail	$	166,485	$	155,535
Americas Wholesale	68,357		45,430
Europe	276,009		241,852
Asia	56,222		55,660
Licensing	26,400		21,525
Total net revenue	$	593,473	$	520,002
Earnings (loss) from operations:
Americas Retail	$	14,266	$	20,274
Americas Wholesale	17,397		11,555
Europe	17,890		4,198
Asia	(3,487)		(1,808)
Licensing	24,444		19,431
Total segment earnings from operations	70,510		53,650
Corporate overhead	(33,192)		(28,776)
Asset impairment charges1	(1,544)		(441)
Net gains on lease modifications2	601		2,145
Total earnings from operations	$	36,375	$	26,578

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Notes:

1    During the three months ended April 30, 2022, the Company recognized asset impairment charges related primarily to property and equipment of certain retail locations resulting from under-performance and expected store closures. During the three months ended May 1, 2021, the Company recognized asset impairment charges related primarily to property and equipment and certain operating lease ROU assets of certain retail stores resulting from lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic and expected store closures. Refer to Note 2 and Note 15 for more information regarding these asset impairment charges.

2    During the three months ended April 30, 2022 and May 1, 2021, the Company recorded net gains on lease modifications related primarily to the early termination of certain lease agreements.

The 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
	Apr 30, 2022		May 1, 2021
Net revenue:
U.S.	$	169,127	$	157,066
Italy	56,366		47,553
Canada	40,578		26,640
South Korea	35,884		27,809
Germany	35,841		34,678
Spain	30,113		25,507
Other countries	199,164		179,224
Total product sales	567,073		498,477
Net royalties	26,400		21,525
Net revenue	$	593,473	$	520,002

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.