Segment Information

6 Months Ended

Aug. 02, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

FASB ASC Topic 280, “Segment Reporting” (“ASC 280”), establishes standards for reporting information about a company’s operating segments. In the fourth quarter of 2013, management concluded that we have two reportable segments: a) retail stores and e-commerce; and b) international licensing. As a result, prior year segment information has been recasted to conform to the current year presentation. These reportable segments were identified based on how our business is managed and evaluated. The reportable segments represent the Company’s activities for which separate financial information is available and which is utilized on a regular basis by the Company’s chief operating decision maker (“CODM”) to evaluate performance and allocate resources. The retail stores and e-commerce segment includes Aéropostale U.S., Aéropostale Canada, P.S. from Aéropostale and GoJane. In identifying our reportable segments, the Company considers economic characteristics, as well as products, customers, sales growth potential and long-term profitability. The accounting policies of the Company’s reportable segments are consistent with those described in Note 1 of our Annual Report on Form 10-K for the fiscal year ended February 1, 2014. All intercompany transactions are eliminated in consolidation. We do not rely on any major customers as a source of revenue.  

The following tables provide summary financial data for each of our segments (in thousands):

	13 weeks ended				26 weeks ended
	August 2, 2014		August 3, 2013		August 2, 2014		August 3, 2013
Net sales:
Retail stores and e-commerce	$	388,441	$	448,740	$	776,762	$	898,887
International licensing	7,714		5,294		15,251		7,420
Total net sales	$	396,155	$	454,034	$	792,013	$	906,307

	13 weeks ended						26 weeks ended
	August 2, 2014			August 3, 2013			August 2, 2014			August 3, 2013
Loss from operations:
Retail stores and e-commerce 1	$	(43,444	)	$	(38,038	)	$	(96,384	)	$	(59,749	)
International licensing	6,892			4,917			13,795			6,682
Other 2	(25,099		)	(10,671		)	(62,499		)	(11,231		)
Total loss from operations	$	(61,651	)	$	(43,792	)	$	(145,088	)	$	(64,298	)

¹ Such amounts include all corporate overhead and shared service function costs. We have not allocated a portion of these costs to international licensing in this presentation to be consistent with how the CODM reviews the results.

² Other items for the second quarter and first twenty-six weeks of 2014, which are all related to the retail stores and e-commerce segment, included restructuring charges (See Note 3), store asset impairment charges (See Note 4) and other income (charges) that are not included in the segment income (loss) from operations reviewed by the CODM. Other items for the second quarter of 2013 and first twenty-six weeks of 2013 included store asset impairment and other charges.

Depreciation expense and capital expenditures have not been separately disclosed as the amounts primarily relate to the retail stores and e-commerce segment. Such amounts are not material for the international licensing segment.

	August 2, 2014		February 1, 2014		August 3, 2013
Total assets:
Retail stores and e-commerce	$	624,708	$	637,927	$	737,090
International licensing	10,074		9,714		6,566
Total assets	$	634,782	$	647,641	$	743,656