Segment Information

6 Months Ended

Sep. 28, 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				Six Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Revenue:
Net sales: Retail	$	355,573	$	242,280	$	681,245	$	457,284
Wholesale		351,871		270,785		642,447		453,151
Licensing		32,859		19,870		57,470		37,365
Total revenue	$	740,303	$	532,935	$	1,381,162	$	947,800
Income from operations:
Retail	$	103,133	$	68,436	$	206,247	$	128,315
Wholesale		98,531		77,399		179,577		118,117
Licensing		19,796		12,093		33,198		23,439
Income from operations	$	221,460	$	157,928	$	419,022	$	269,871

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

	Three Months Ended				Six Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Depreciation and amortization:
Retail	$	10,716	$	8,134	$	20,433	$	17,347
Wholesale		7,223		4,032		13,374		7,798
Licensing		118		92		225		168
Total depreciation and amortization	$	18,057	$	12,258	$	34,032	$	25,313

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				Six Months Ended
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
Revenue:
North America (U.S. and Canada)	$	618,277	$	471,424	$	1,169,831	$	848,573
Europe		114,049		56,651		195,528		90,038
Other regions		7,977		4,860		15,803		9,189
Total revenue	$	740,303	$	532,935	$	1,381,162	$	947,800

	As of
	September 28, 2013		March 30, 2013
Long-lived assets:
North America (U.S. and Canada)	$	238,008	$	209,973
Europe		76,146		46,154
Other regions		6,742		6,966
Total Long-lived assets:	$	320,896	$	263,093