Segment Information

3 Months Ended

May 04, 2024

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. On April 2, 2024, the Company completed the rag & bone acquisition and has integrated rag & bone into its existing segments for financial reporting 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, separation charges, transaction costs, 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
	May 4, 2024		Apr 29, 2023
Net revenue:
Europe	$	283,873	$	280,198
Americas Retail	144,196		143,544
Americas Wholesale	62,128		51,393
Asia	72,756		70,775
Licensing	28,990		23,888
Total net revenue	$	591,943	$	569,798
Earnings (loss) from operations:
Europe	$	(439)	$	1,593
Americas Retail	(10,391)		(3,287)
Americas Wholesale	14,127		13,093
Asia	3,741		3,830
Licensing	26,678		22,295
Total segment earnings from operations	33,716		37,524
Corporate overhead	(52,463)		(36,512)
Asset impairment charges1	(1,141)		(1,934)
Total loss from operations	$	(19,888)	$	(922)

______________________________________________________________________

Notes:

1During the three months ended May 4, 2024 and April 29, 2023, the Company recognized asset impairment charges related primarily to impairment of property and equipment related to certain retail locations resulting from under-performance and expected store closures. Refer to Note 16 for more information regarding these asset impairment charges.

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
	May 4, 2024		Apr 29, 2023
Net revenue:
U.S.	$	142,852	$	133,952
Italy	57,542		60,370
South Korea	48,868		47,589
Germany	33,228		32,364
Spain	30,232		29,236
Mexico	30,205		23,796
Other countries	220,026		218,603
Total product sales	562,953		545,910
Net royalties	28,990		23,888
Net revenue	$	591,943	$	569,798

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.