Segment Reporting

3 Months Ended

May 04, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The Company’s reportable segments are based on the financial information the chief operating decision maker (“CODM”) uses to allocate resources and assess performance of its business.

The Company manages its business on a geographic basis, consisting of three reportable segments: Americas; Europe, the Middle East and Africa (EMEA); and Asia-Pacific (APAC). Corporate functions and other income and expenses are evaluated on a consolidated basis and are not allocated to the Company’s segments, and therefore are included as a reconciling item between segment and total operating income. The Americas reportable segment includes the results of operations in North America and South America. The EMEA reportable segment includes the results of operations in Europe, the Middle East and Africa. The APAC reportable segment includes the results of operations in the Asia-Pacific region, including Asia and Oceania. Intersegment sales and transfers are recorded at cost and are treated as a transfer of inventory. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. All prior periods presented are recast to conform to the new segment presentation.

The group comprised of the Company’s (i) Chief Executive Officer and (ii) Chief Financial Officer and Chief Operating Officer functions as the Company’s CODM. The Company’s CODM manages business operations and evaluates the performance of each segment based on the net sales and operating income (loss) of the segment.

Net sales by segment are presented by attributing revenues on the basis of the segment that fulfills the order. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributed to the segment. Corporate/other expenses include expenses incurred that are not directly attributed to a reportable segment and primarily relate to corporate or global functions such as design, sourcing, brand management, corporate strategy, information

technology, finance, treasury, legal, human resources, and other corporate support services, as well as certain globally managed components of the planning, merchandising, and marketing functions.

The Company reports inventories by segment as that information is used by the CODM in determining allocation of resources to the segments. The Company does not report its other assets by segment as that information is not used by the CODM in assessing segment performance or allocating resources.

The following tables provide the Company’s segment information as of May 4, 2024 and February 3, 2024, and for the thirteen weeks ended May 4, 2024 and April 29, 2023:

	Net Sales
	Thirteen Weeks Ended
(in thousands)	May 4, 2024		April 29, 2023
Americas	$	820,121	$	665,423
EMEA	164,778		138,106
APAC	35,831		32,465
Segment total	$	1,020,730	$	835,994

	Operating Income (Loss)
	Thirteen Weeks Ended
(in thousands)	May 4, 2024		April 29, 2023
Americas	$	252,347	$	156,445
EMEA	24,501		(1,485)
APAC	(322)		(2,547)
Segment total	$	276,526	$	152,413
Operating (loss) income not attributed to segments:
Stores and distribution expense	(3,371)		(1,889)
Marketing, general and administrative expense	(145,264)		(119,405)
Other operating income,net	1,958		2,889
Total operating income	$	129,849	$	34,008

	Assets
(in thousands)	May 4, 2024		February 3, 2024
Inventories
Americas	$	361,061	$	372,371
EMEA	70,829		77,125
APAC	17,377		19,970
Total inventories	$	449,267	$	469,466
Assets not attributed to segments	2,520,818		2,504,767
Total assets	$	2,970,085	$	2,974,233

Brand Information

The following table provides additional disaggregated revenue information, which is categorized by brand, for the thirteen weeks ended May 4, 2024 and April 29, 2023:

	Thirteen Weeks Ended
(in thousands)	May 4, 2024		April 29, 2023
Abercrombie (1)	$	571,513	$	436,044
Hollister (2)	449,217		399,950
Total	$	1,020,730	$	835,994