Segment Information

9 Months Ended

Oct. 28, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Europe, Americas Retail, Americas Wholesale, Asia and Licensing. The Company’s Europe, Americas Retail, Americas Wholesale 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				Nine Months Ended
	Oct 28, 2023		Oct 29, 2022		Oct 28, 2023		Oct 29, 2022
Net revenue:
Europe	$	344,472	$	323,754	$	990,981	$	936,470
Americas Retail	153,872		165,603		464,984		513,743
Americas Wholesale	55,288		53,181		150,361		171,733
Asia	64,498		63,118		194,210		168,705
Licensing	33,040		27,747		84,944		78,915
Total net revenue	$	651,170	$	633,403	$	1,885,480	$	1,869,566
Earnings (loss) from operations:
Europe	$	35,555	$	36,222	$	84,344	$	88,650
Americas Retail	8,086		11,365		20,060		49,552
Americas Wholesale	16,106		10,229		40,264		39,068
Asia	636		(5)		3,927		(6,792)
Licensing	30,770		24,849		79,419		70,499
Total segment earnings from operations	91,153		82,660		228,014		240,977
Corporate overhead	(34,106)		(26,216)		(105,164)		(92,757)
Asset impairment charges1	(1,737)		(1,789)		(6,293)		(5,252)
Net gains (losses) on lease modifications2	(537)		146		1,894		1,654
Total earnings from operations	$	54,773	$	54,801	$	118,451	$	144,622

______________________________________________________________________

Notes:

1During the three and nine months ended October 28, 2023 and October 29, 2022, the Company recognized asset impairment charges related primarily to impairment of property and equipment and operating right-of-use assets related to certain retail locations resulting from under-performance and expected store closures. Refer to Note 2 and Note 15 for more information regarding these asset impairment charges.

2During the three and nine months ended October 28, 2023 and October 29, 2022, the Company recorded net gains (losses) 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				Nine Months Ended
	Oct 28, 2023		Oct 29, 2022		Oct 28, 2023		Oct 29, 2022
Net revenue:
U.S.	$	133,613	$	146,677	$	412,746	$	474,938
Italy	71,395		63,983		213,055		193,044
Germany	47,179		45,582		127,503		130,486
South Korea	41,642		38,989		124,132		102,998
Canada	38,968		43,111		109,178		127,671
Spain	35,034		32,115		104,389		98,902
Other countries	250,299		235,199		709,533		662,612
Total product sales	618,130		605,656		1,800,536		1,790,651
Net royalties	33,040		27,747		84,944		78,915
Net revenue	$	651,170	$	633,403	$	1,885,480	$	1,869,566

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.