Segment Information

3 Months Ended

Jun. 28, 2014

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, jewelry, 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 South 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 28, 2014		June 29, 2013
Revenue:
Net sales: Retail	$	480,242	$	325,672
Wholesale		406,795		290,576
Licensing		32,117		24,611
Total revenue	$	919,154	$	640,859
Income from operations:
Retail	$	142,689	$	103,114
Wholesale		117,652		81,046
Licensing		16,430		13,402
Income from operations	$	276,771	$	197,562

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

	Three Months Ended
	June 28, 2014		June 29, 2013
Depreciation and amortization:
Retail	$	17,965	$	9,717
Wholesale		10,775		6,151
Licensing		258		107
Total depreciation and amortization	$	28,998	$	15,975

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 28, 2014		June 29, 2013
Revenue:
North America (U.S. and Canada)	$	718,889	$	551,554
Europe		185,497		81,479
Other regions		14,768		7,826
Total revenue	$	919,154	$	640,859

	As of
	June 28, 2014		March 29, 2014
Long-lived assets:
North America (U.S. and Canada)	$	312,951	$	283,162
Europe		132,799		108,074
Other regions		8,870		7,476
Total Long-lived assets:	$	454,620	$	398,712