Segment Information

3 Months Ended

12 Months Ended

Jun. 30, 2012

Mar. 31, 2012

Segment Information

11. Segment Information

The Company operates its business through three operating segments—Retail, Wholesale and Licensing—which are based on its business activities and organization. The operating segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of Licensing) and operating income for each segment. The Company’s reportable segments represent channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. Sales of the Company’s products through Company owned stores for the Retail segment include “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout North America, Europe, and Japan. Products sold through the Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), footwear and licensed products, such as watches, fragrances and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout North America and Europe. Products sold through the Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products in certain geographical regions such as Korea, the Philippines, Singapore, Malaysia, the Middle East, Turkey, Russia, China, Hong Kong, Macau and Taiwan. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods.

The Company has allocated $12.1 million and $1.9 million of its recorded goodwill to its Wholesale and Licensing segments, respectively. The Company does not have identifiable assets separated by segment. The following table presents the key performance information of the Company’s reportable segments (in thousands):

	Three Months Ended
	June 30, 2012		July 2, 2011
Revenue:
Net sales: Retail	$	215,004	$	122,344
Wholesale		182,366		109,938
Licensing		17,495		10,844
Total revenue	$	414,865	$	243,126
Income from operations:
Retail	$	59,879	$	27,922
Wholesale		40,718		10,868
Licensing		11,346		6,186
Income from operations	$	111,943	$	44,976

Depreciation and amortization expense for each segment are as follows (in thousands):

	Three Months Ended
	June 30, 2012		July 2, 2011
Depreciation and amortization:
Retail	$	9,213	$	5,601
Wholesale		3,766		2,841
Licensing		76		59
Total depreciation and amortization	$	13,055	$	8,501

Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands):

	Three Months Ended
	June 30, 2012		July 2, 2011
Revenue:
North America (U.S. and Canada)	$	377,149	$	225,768
Europe		33,387		15,864
Other regions		4,329		1,494
Total revenue	$	414,865	$	243,126

	As of
	June 30, 2012		March 31, 2012
Long-lived assets:
North America (U.S. and Canada)	$	160,531	$	151,516
Europe		27,499		27,857
Other regions		5,971		5,528
Total Long-lived assets:	$	194,001	$	184,901

15. Segment Information

The Company operates its business through three operating segments—Retail, Wholesale and Licensing—which are based on its business activities and organization. The operating segments are segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by executive management in deciding how to allocate resources, as well as in assessing performance. The primary key performance indicators are net sales or revenue (in the case of Licensing) and operating income for each segment. The Company’s reportable segments represent channels of distribution that offer similar merchandise, customer experience and sales/marketing strategies. Sales of the Company’s products through Company owned stores for the Retail segment include “Collection,” “Lifestyle” including “concessions,” and outlet stores located throughout North America, Europe, and Japan. Products sold through the Retail segment include women’s apparel, accessories (which include handbags and small leather goods such as wallets), women’s footwear and licensed products, such as watches, fragrances and eyewear. The Wholesale segment includes sales primarily to major department stores and specialty shops throughout North America and Europe. Products sold through the Wholesale segment include accessories (which include handbags and small leather goods such as wallets), footwear and women’s and men’s apparel. The Licensing segment includes royalties earned on licensed products and use of the Company’s trademarks, and rights granted to third parties for the right to sell the Company’s products in certain geographical regions such as Korea, the Philippines, Singapore, Malaysia, the Middle East, Russia, Turkey, China, Hong Kong, Macau and Taiwan. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead expenses are allocated to the segments based upon specific usage or other allocation methods.

The Company has allocated $12.1 million and $1.9 million of its recorded goodwill to its Wholesale and Licensing segments, respectively. The Company does not have identifiable assets separated by segment. The following table presents the key performance information of the Company’s reportable segments (in thousands):

	Fiscal Years Ended
	March 31, 2012		April 2, 2011		April 3, 2010
Revenue:
Net sales: Retail	$	626,940	$	344,195	$	186,538
Wholesale		610,160		413,605		296,914
Licensing		65,154		45,539		24,647
Total revenue	$	1,302,254	$	803,339	$	508,099
Income from operations:
Retail	$	121,851	$	61,194	$	15,514
Wholesale		85,000		48,241		31,258
Licensing		40,831		27,431		9,402
Income from operations	$	247,682	$	136,866	$	56,174

Depreciation and amortization expense for each segment are as follows (in thousands):

	Fiscal Years Ended
	March 31, 2012		April 2, 2011		April 3, 2010
Depreciation:
Retail(1)	$	25,293	$	16,526	$	11,969
Wholesale		12,012		8,894		6,799
Licensing		249		123		75
Total depreciation	$	37,554	$	25,543	$	18,843

(1) Excluded in the above table are impairment charges related to the retail segment for $3.3 million and $3.8 million, during the fiscal years ended March 31, 2012 and April 2, 2011, respectively.

Total revenue (as recognized based on country of origin), and long-lived assets by geographic location of the consolidated Company are as follows (in thousands):

	Fiscal Years Ended
	March 31, 2012		April 2, 2011		April 3, 2010
Net revenues:
North America (U.S. and Canada)	$	1,183,234	$	763,819	$	497,278
Europe		108,790		38,502		10,821
Other regions		10,230		1,018		—
Total net revenues	$	1,302,254	$	803,339	$	508,099
	As of
	March 31, 2012		April 2, 2011
Long-lived assets:
North America (U.S. and Canada)	$	151,516	$	113,702
Europe		27,857		19,539
Other regions		5,528		1,878
Total Long-lived assets:	$	184,901	$	135,119