Segment Information

3 Months Ended

Jun. 29, 2013

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, Indonesia, Australia, the Middle East, Russia, Turkey, China, Hong Kong, Macau Taiwan, Latin America and the Caribbean, and India. 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 29, 2013		June 30, 2012
Revenue:
Net sales: Retail	$	325,672	$	215,004
Wholesale		290,576		182,366
Licensing		24,611		17,495
Total revenue	$	640,859	$	414,865
Income from operations:
Retail	$	103,114	$	59,879
Wholesale		81,046		40,718
Licensing		13,402		11,346
Income from operations	$	197,562	$	111,943

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

	Three Months Ended
	June 29, 2013		June 30, 2012
Depreciation and amortization:
Retail	$	9,717	$	9,213
Wholesale		6,151		3,766
Licensing		107		76
Total depreciation and amortization	$	15,975	$	13,055

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 29, 2013		June 30, 2012
Revenue:
North America (U.S. and Canada)	$	551,554	$	377,149
Europe		81,479		33,387
Other regions		7,826		4,329
Total revenue	$	640,859	$	414,865
	As of
	June 29, 2013		March 30, 2013
Long-lived assets:
North America (U.S. and Canada)	$	220,959	$	209,973
Europe		57,034		46,154
Other regions		6,569		6,966
Total Long-lived assets:	$	284,562	$	263,093