Business Segment Information

3 Months Ended

Jul. 28, 2012

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

During the six months ended July 28, 2012, the Company operated five reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz, Shi by Journeys and Underground by Journeys retail footwear chains, catalog and e-commerce operations; (ii) Schuh Group, acquired in June 2011, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Lids Sports Group, comprised primarily of the Lids, Hat World and Hat Shack retail headwear stores, the Lids Locker Room and Lids Clubhouse fan shops (operated under various trade names), the Lids Team Sports business and certain e-commerce operations; (iv) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, catalog and e-commerce operations and wholesale distribution; and (v) Licensed Brands, comprised of Dockers^® Footwear, sourced and marketed under a license from Levi Strauss & Company, SureGrip^® Footwear and other brands.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The Company's reportable segments are based on management's organization of the segments in order to make operating decisions and assess performance along types of products sold. Journeys Group, Schuh Group and Lids Sports Group sell primarily branded products from other companies while Johnston & Murphy Group and Licensed Brands sell primarily the Company's owned and licensed brands. As a result of combining the Underground Station Group with Journeys Group in the first quarter of Fiscal 2013, Journeys Group segment sales, operating income, total assets, depreciation and amortization and capital expenditures have been restated for the three months and six months ended July 30, 2011 to conform to the current year presentation.

Corporate assets include cash, prepaid rent expense, prepaid income taxes, deferred income taxes, deferred note expense and corporate fixed assets. The Company charges allocated retail costs of distribution to each segment. The Company does not allocate certain costs to each segment in order to make decisions and assess performance. These costs include corporate overhead, interest expense, interest income, asset impairment charges and other, including major litigation.

Note 9

Business Segment Information, Continued

Three Months Ended
July 28, 2012	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group			Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	209,439	$	81,156		$	182,598		$	48,286		$	22,307		$	513		$	544,299
Intercompany Sales	—		—			(719		)	(7		)	(51		)	—			(777		)
Net sales to external customers	$	209,439	$	81,156		$	181,879		$	48,279		$	22,256		$	513		$	543,522
Segment operating income (loss)	$	2,065	$	(545	)	$	20,571		$	1,814		$	1,427		$	(7,973	)	$	17,359
Asset Impairments and other*	—		—			—			—			—			(404		)	(404		)
Earnings (loss) from operations	2,065		(545		)	20,571			1,814			1,427			(8,377		)	16,955
Interest expense	—		—			—			—			—			(1,217		)	(1,217		)
Interest income	—		—			—			—			—			10			10
Earnings (loss) from continuing operations before income taxes	$	2,065	$	(545	)	$	20,571		$	1,814		$	1,427		$	(9,584	)	$	15,748
Total assets**	$	336,788	$	221,257		$	527,555		$	84,353		$	32,906		$	178,099		$	1,380,958
Depreciation and amortization	4,987		2,531			6,198			918			82			575			15,291
Capital expenditures	4,656		5,322			5,271			1,704			527			935			18,415

*Asset Impairments and other includes a $0.4 million charge for asset impairments, of which $0.3 million is in the Lids Sports Group and $0.1 million is in the Journeys Group.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $168.5 million, $100.0 million and $0.8 million of goodwill, respectively.

Three Months Ended
July 30, 2011	Journeys Group			Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	194,693		33,973			$	177,556		$	45,571	$	18,627		$	313		$	470,733
Intercompany Sales	—			—			(33		)	—		(109		)	—			(142		)
Net sales to external customers	$	194,693		$	33,973		$	177,523		$	45,571	$	18,518		$	313		$	470,591
Segment operating income (loss)	$	(3,875	)	$	(77	)	$	18,106		$	2,155	$	994		$	(15,305	)	$	1,998
Asset Impairments and other*	—			—			—			—		—			(347		)	(347		)
Earnings (loss) from operations	(3,875		)	(77		)	18,106			2,155		994			(15,652		)	1,651
Interest expense	—			—			—			—		—			(1,097		)	(1,097		)
Interest income	—			—			—			—		—			16			16
Earnings (loss) from continuing operations before income taxes	$	(3,875	)	$	(77	)	$	18,106		$	2,155	$	994		$	(16,733	)	$	570
Total assets**	$	307,796		214,650			$	478,455		$	77,038	$	31,963		$	168,674		$	1,278,576
Depreciation and amortization	5,157			936			5,409			877		67			556			13,002
Capital expenditures	3,202			982			7,115			758		271			1,288			13,616

*Asset Impairments and other includes a $0.4 million charge for asset impairments, of which $0.2 million is in the Journeys Group and $0.2 million is in the Lids Sports Group.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $155.4 million, $104.2 million and $0.8 million of goodwill.

Note 9

Business Segment Information, Continued

Six Months Ended
July 28, 2012	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group			Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	473,279	$	151,468		$	365,973		$	99,699		$	53,650		$	690		$	1,144,759
Intercompany Sales	—		—			(958		)	(7		)	(128		)	—			(1,093		)
Net sales to external customers	$	473,279	$	151,468		$	365,015		$	99,692		$	53,522		$	690		$	1,143,666
Segment operating income (loss)	$	27,347	$	(3,496	)	$	39,739		$	5,823		$	4,792		$	(20,704	)	$	53,501
Asset Impairments and other*	—		—			—			—			—			(539		)	(539		)
Earnings (loss) from operations	27,347		(3,496		)	39,739			5,823			4,792			(21,243		)	52,962
Interest expense	—		—			—			—			—			(2,349		)	(2,349		)
Interest income	—		—			—			—			—			25			25
Earnings (loss) from continuing operations before income taxes	$	27,347	$	(3,496	)	$	39,739		$	5,823		$	4,792		$	(23,567	)	$	50,638
Total assets**	$	336,788	$	221,257		$	527,555		$	84,353		$	32,906		$	178,099		$	1,380,958
Depreciation and amortization	9,957		4,773			12,707			1,811			158			1,138			30,544
Capital expenditures	8,815		7,895			9,772			3,575			582			1,894			32,533

*Asset Impairments and other includes a $0.4 million charge for asset impairments, of which $0.3 million is in the Lids Sports Group and $0.1 million is in the Journeys Group, and $0.1 million of network intrusion costs.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $168.5 million, $100.0 million and $0.8 million of goodwill, respectively.

Six Months Ended
July 30, 2011	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	429,210	33,973			$	347,258		$	93,622	$	47,643		$	621		$	952,327
Intercompany Sales	—		—			(59		)	—		(175		)	—			(234		)
Net sales to external customers	$	429,210	$	33,973		$	347,199		$	93,622	$	47,468		$	621		$	952,093
Segment operating income (loss)	$	13,583	$	(77	)	$	32,110		$	5,050	$	4,298		$	(26,197	)	$	28,767
Asset Impairments and other*	—		—			—			—		—			(1,591		)	(1,591		)
Earnings (loss) from operations	13,583		(77		)	32,110			5,050		4,298			(27,788		)	27,176
Interest expense	—		—			—			—		—			(1,613		)	(1,613		)
Interest income	—		—			—			—		—			18			18
Earnings (loss) from continuing operations before income taxes	$	13,583	$	(77	)	$	32,110		$	5,050	$	4,298		$	(29,383	)	$	25,581
Total assets**	$	307,796	214,650			$	478,455		$	77,038	$	31,963		$	168,674		$	1,278,576
Depreciation and amortization	10,439		936			10,857			1,774		133			1,065			25,204
Capital expenditures	5,275		982			13,529			1,165		475			1,787			23,213

*Asset Impairments and other includes a $1.1 million charge for asset impairments, of which $0.6 million is in the Journeys Group, $0.3 million is in the Lids Sports Group and $0.2 million is in the Johnston & Murphy Group.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $155.4 million, $104.2 million and $0.8 million of goodwill.