Segment Information

9 Months Ended

Dec. 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				Nine Months Ended
	December 28, 2013		December 29, 2012		December 28, 2013		December 29, 2012
Revenue:
Net sales: Retail	$	503,380	$	332,641	$	1,184,625	$	789,925
Wholesale		461,407		274,302		1,103,854		727,453
Licensing		47,442		29,835		104,912		67,200
Total revenue	$	1,012,229	$	636,778	$	2,393,391	$	1,584,578
Income from operations:
Retail	$	171,281	$	109,012	$	377,528	$	237,327
Wholesale		140,685		76,790		320,262		194,907
Licensing		31,274		19,037		64,472		42,476
Income from operations	$	343,240	$	204,839	$	762,262	$	474,710

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

	Three Months Ended				Nine Months Ended
	December 28, 2013		December 29, 2012		December 28, 2013		December 29, 2012
Depreciation and amortization:
Retail	$	12,316	$	8,435	$	32,749	$	25,781
Wholesale		9,145		5,233		22,519		13,032
Licensing		194		100		419		268
Total depreciation and amortization	$	21,655	$	13,768	$	55,687	$	39,081

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				Nine Months Ended
	December 28, 2013		December 29, 2012		December 28, 2013		December 29, 2012
Revenue:
North America (U.S. and Canada)	$	862,619	$	573,115	$	2,032,450	$	1,421,688
Europe		140,294		57,604		335,822		147,642
Other regions		9,316		6,059		25,119		15,248
Total revenue	$	1,012,229	$	636,778	$	2,393,391	$	1,584,578

	As of
	December 28, 2013		March 30, 2013
Long-lived assets:
North America (U.S. and Canada)	$	263,930	$	209,973
Europe		92,719		46,154
Other regions		6,991		6,966
Total Long-lived assets:	$	363,640	$	263,093