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Unaudited Quarterly Consolidated Financial Information
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Unaudited Quarterly Consolidated Financial Information
UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
 
For the Quarter Ended
 
March 31,
2016
 
June 30,
2016
 
September 30,
2016
 
December 31, 2016
 
(in thousands, except per share data)
Revenues
$
279,140

 
$
323,828

 
$
245,888

 
$
187,417

Gross profit
129,366

 
169,640

 
122,434

 
78,724

Asset impairment charges
193

 
572

 
930

 
1,449

Income (loss) from operations
14,243

 
20,605

 
(1,215
)
 
(39,787
)
Net income (loss)
10,146

 
15,537

 
(1,533
)
 
(40,644
)
Net income (loss) attributable to common shareholders
6,361

 
11,735

 
(5,352
)
 
(44,482
)
Basic income (loss) per common share
$
0.07

 
$
0.13

 
$
(0.07
)
 
$
(0.60
)
Diluted income (loss) per common share
$
0.07

 
$
0.13

 
$
(0.07
)
 
$
(0.60
)
 
For the Quarter Ended
 
March 31,
2015
 
June 30,
2015
 
September 30,
2015
 
December 31, 2015
 
(in thousands, except per share data)
Revenues
$
262,193

 
$
345,671

 
$
274,088

 
$
208,678

Gross profit
127,370

 
189,870

 
120,821

 
72,744

Restructuring
3,663

 
2,810

 
981

 
1,274

Asset impairment charges
—

 
2,075

 
5,460

 
7,771

Income (loss) from operations
(2,362
)
 
16,349

 
(20,730
)
 
(65,581
)
Net income (loss)
(2,425
)
 
13,426

 
(24,024
)
 
(70,173
)
Net income (loss) attributable to common shareholders
(5,979
)
 
9,690

 
(27,776
)
 
(73,942
)
Basic income (loss) per common share
$
(0.08
)
 
$
0.11

 
$
(0.37
)
 
$
(1.01
)
Diluted income (loss) per common share
$
(0.08
)
 
$
0.11

 
$
(0.37
)
 
$
(1.01
)


During the three months ended December 31, 2016 we identified the following factors affecting the comparability of information between periods:
•
Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. For the quarter ended December 31, 2016 revenue decreased 10.2% as compared to the same quarter of the prior year which was primarily driven by a decrease in sales in the Wholesale and Retail segments.
•
Gross margin as a percent of revenue remained relatively constant across periods. For the three months ended December 31, 2016 gross margins decreased by 7.8% as compared to the three months ended September 30, 2016 which is typical in the fourth quarter as a result of product mix coupled with traditionally higher year end promotion activities related to the liquidation of current year product lines remaining in inventory. Of the 7.8% decrease in gross margin, 2.3% of the shortfall was due to an increase in royalty expense related to clarification of new and existing agreements, which resulted in a change in estimates for royalties.
•
Our Income from operations for the quarter ended June 30, 2016 was negatively impacted by an increase of $18.3M in marketing expense related to the Spring/Summer line advertising campaigns. SG&A, otherwise, remained relatively constant across the quarters, with some fluctuation between periods in relation to contingent rent expense that is driven by sales.
During the three months ended December 31, 2015 we identified the following factors affecting the comparability of information between periods:
•
Due to the seasonal nature of our products, we experience decreased revenues in the fourth quarter of the year relative to the other quarters. For the quarter ended December 31, 2015 revenue increased 1.0% as compared to the same quarter of the prior year.
•
Revenue and gross profit are typically negatively impacted by an increase in sales returns and allowances in the quarter ended December 31, 2015 due to traditionally higher year end promotion activities related to the liquidation of current year product lines remaining in inventory. For the three months ended December 31, 2015 revenue and gross profit decreased by $8.7 million, relative to the first three quarters of 2015, due to an increase in sales discounts.
•
Revenue and gross profit for the three months ended December 31, 2015 decreased by an additional $6.0 million due to higher sales returns and allowances, as a percent of gross revenue, as compared to the first three quarters of 2015. This increase in sales returns and allowances is consistent with the fourth quarter of prior years.
•
Our Income from operations for the quarter ended December 31, 2015 was also negatively impacted by asset impairment charges of $7.8 million, of which $5.7 million related to the impairment of our South Africa asset group with the remaining impairment being related to certain underperforming retail locations. See Note 4 — Property and Equipment for additional information.
•
Our net income for the quarter ended December 31, 2015 was negatively impacted by a tax expense of $4.7 million primarily associated with an increase in valuation allowances on deferred tax assets which management determined were not likely to be realized in future periods. See Note 13 — Income taxes for additional information.