Segment Information

12 Months Ended

Mar. 30, 2013

Segment Information

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), 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 (e.g. the Middle East) and countries such as Korea, the Philippines, Singapore, Malaysia, Russia and Turkey. 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 30, 2013		March 31, 2012		April 2, 2011
Revenue:
Net sales: Retail	$	1,062,642	$	626,940	$	344,195
Wholesale		1,032,115		610,160		413,605
Licensing		86,975		65,154		45,539
Total revenue	$	2,181,732	$	1,302,254	$	803,339
Income from operations:
Retail	$	315,654	$	121,851	$	61,194
Wholesale		269,323		85,000		48,241
Licensing		45,037		40,831		27,431
Income from operations	$	630,014	$	247,682	$	136,866

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

	Fiscal Years Ended
	March 30, 2013		March 31, 2012		April 2, 2011
Depreciation:
Retail (1)	$	35,388	$	25,293	$	16,526
Wholesale		18,531		12,012		8,894
Licensing		372		249		123
Total depreciation	$	54,291	$	37,554	$	25,543

(1) Excluded in the above table are impairment charges related to the retail segment for $0.7 million, $3.3 million, and $3.8 million, during the fiscal years ended March 30, 2013, 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 30, 2013		March 31, 2012		April 2, 2011
Net revenues:
North America (U.S. and Canada)	$	1,938,635	$	1,183,234	$	763,819
Europe		220,724		108,790		38,502
Other regions		22,373		10,230		1,018
Total net revenues	$	2,181,732	$	1,302,254	$	803,339

	As of
	March 30, 2013		March 31, 2012
Long-lived assets:
North America (U.S. and Canada)	$	209,973	$	151,516
Europe		46,154		27,857
Other regions		6,966		5,528
Total Long-lived assets:	$	263,093	$	184,901