Segment and Enterprise-wide Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment and Enterprise-wide Information

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We have two operating segments, Direct and Retail. There were no changes in our operating segments during the six months ended June 30, 2020.

We evaluate performance of the operating segments using several factors, of which the primary financial measures are net sales and reportable segment contribution. Contribution is the measure of profit or loss, defined as net sales less product costs and directly attributable expenses. Directly attributable expenses include selling and marketing expenses, general and administrative expenses, and research and development expenses that are directly related to segment operations. Segment assets are those directly assigned to an operating segment's operations, primarily accounts receivable, inventories and other intangible assets. Unallocated assets primarily include cash, cash equivalents and restricted cash, derivative securities, shared information technology infrastructure, distribution centers, corporate headquarters, prepaids and other current assets, deferred income tax assets and other assets. Capital expenditures directly attributable to the Direct and Retail segments were not significant in any period.

Following is summary information by reportable segment (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Net sales:
Direct	$	50,433	$	20,834	$	97,574	$	67,548
Retail	62,948		37,453		108,561		74,274
Royalty	807		717		1,775		1,582
Consolidated net sales	$	114,188	$	59,004	$	207,910	$	143,404
Contribution:
Direct	$	16,995	$	(6,334)	$	18,804	$	(10,876)
Retail	11,613		(247)		14,002		(969)
Royalty	807		717		1,775		1,582
Consolidated contribution	$	29,415	$	(5,864)	$	34,581	$	(10,263)
Reconciliation of consolidated contribution to loss from continuing operations:
Consolidated contribution	$	29,415	$	(5,864)	$	34,581	$	(10,263)
Amounts not directly related to segments:
Operating expenses	(36,521)		(79,550)		(42,247)		(85,318)
Other expense, net	(222)		(55)		(806)		(488)
Income tax benefit	2,342		6,725		5,788		8,841
Loss from continuing operations	$	(4,986)	$	(78,744)	$	(2,684)	$	(87,228)
	As of
	June 30,		December 31,
Assets:	2020		2019
Direct	$	29,829	$	47,377
Retail	87,912		148,965
Unallocated corporate	87,230		24,137
Total assets	$	204,971	$	220,479

The following customer accounted for 10% or more of total net sales as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Amazon.com	18.0	%	20.9	%	15.9	%	12.1	%