Segment Information

6 Months Ended

Sep. 27, 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 the South Pacific, the Middle East, Eastern Europe, Latin America and the Caribbean, as well as throughout all of Asia. 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 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Revenue:
Net sales: Retail	$	495,579	$	355,573	$	975,821	$	681,245
Wholesale		514,090		351,871		920,885		642,447
Licensing		46,936		32,859		79,053		57,470
Total revenue	$	1,056,605	$	740,303	$	1,975,759	$	1,381,162
Income from operations:
Retail	$	127,334	$	103,133	$	270,023	$	206,247
Wholesale		156,672		98,531		274,324		179,577
Licensing		21,552		19,796		37,982		33,198
Income from operations	$	305,558	$	221,460	$	582,329	$	419,022

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

	Three Months Ended				Six Months Ended
	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Depreciation and amortization:
Retail	$	22,022	$	10,716	$	39,987	$	20,433
Wholesale		11,723		7,223		22,498		13,374
Licensing		319		118		577		225
Total depreciation and amortization	$	34,064	$	18,057	$	63,062	$	34,032

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 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Revenue:
North America (U.S. and Canada)	$	802,226	$	618,277	$	1,521,115	$	1,169,831
Europe		237,924		114,049		423,421		195,528
Other regions		16,455		7,977		31,223		15,803
Total revenue	$	1,056,605	$	740,303	$	1,975,759	$	1,381,162

	As of
	September 27, 2014		March 29, 2014
Long-lived assets:
North America (U.S. and Canada)	$	357,329	$	283,162
Europe		141,419		108,074
Other regions		8,366		7,476
Total Long-lived assets:	$	507,114	$	398,712