Business Segment Information

3 Months Ended

May 02, 2015

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

During the three months ended May 2, 2015 and May 3, 2014, 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, e-commerce operations and catalog; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Lids Sports Group, comprised primarily of the Lids retail headwear stores, the Lids Locker Room and Lids Clubhouse fan shops (operated under various trade names), licensed team merchandise departments in Macy's department stores operated under the name of Locker Room by Lids under a license agreement with Macy's, the Lids Team Sports business and certain e-commerce operations; (iv) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog and wholesale distribution of products under the Johnston & Murphy and Trask brands; and (v) Licensed Brands, comprised of Dockers Footwear, sourced and marketed under a license from Levi Strauss & Company; SureGrip Footwear, occupational footwear primarily sold directly to consumers; and other brands.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1).

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.

Corporate assets include cash, domestic 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 and major lease terminations.

Note 9

Business Segment Information, Continued

Three Months Ended
May 2, 2015	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	278,632	$	78,562		$	206,590		$	66,362	$	30,746		$	135		$	661,027
Intercompany Sales	—		—			(261		)	—		(169		)	—			(430		)
Net sales to external customers	$	278,632	$	78,562		$	206,329		$	66,362	$	30,577		$	135		$	660,597
Segment operating income (loss)	$	24,422	$	(2,661	)	$	(3,397	)	$	3,977	$	3,023		$	(6,464	)	$	18,900
Asset Impairments and other*	—		—			—			—		—			(2,646		)	(2,646		)
Earnings (loss) from operations	24,422		(2,661		)	(3,397		)	3,977		3,023			(9,110		)	16,254
Interest expense	—		—			—			—		—			(660		)	(660		)
Interest income	—		—			—			—		—			15			15
Earnings (loss) from continuing operations before income taxes	$	24,422	$	(2,661	)	$	(3,397	)	$	3,977	$	3,023		$	(9,755	)	$	15,609
Total assets**	$	317,770	$	260,213		$	675,325		$	111,067	$	41,455		$	210,238		$	1,616,068
Depreciation and amortization	5,460		3,513			7,718			1,365		215			1,222			19,493
Capital expenditures	6,979		1,724			10,789			2,740		134			2,034			24,400

*Asset Impairments and other includes a $0.8 million charge for asset impairments, which relates to the Lids Sports Group, a $1.8 million charge for network intrusion expenses and $0.1 million for other legal matters.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $200.7 million, $97.3 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill increased by $1.3 million from January 31, 2015 due to foreign currency translation adjustments. Of the Company's $310.6 million of property and equipment $63.1 million and $14.7 million relate to property and equipment in the United Kingdom and Canada, respectively.

Note 9

Business Segment Information, Continued

Three Months Ended
May 3, 2014	Journeys Group		Schuh Group			Lids Sports Group			Johnston & Murphy Group		Licensed Brands			Corporate & Other			Consolidated
In thousands
Sales	$	262,123	81,276			$	189,335		$	63,397	$	32,685		$	301		$	629,117
Intercompany Sales	—		—			(69		)	—		(223		)	—			(292		)
Net sales to external customers	$	262,123	$	81,276		$	189,266		$	63,397	$	32,462		$	301		$	628,825
Segment operating income (loss)	$	19,677	$	(5,141	)	$	8,137		$	4,496	$	3,521		$	(8,083	)	$	22,607
Asset Impairments and other*	—		—			—			—		—			1,111			1,111
Earnings (loss) from operations	19,677		(5,141		)	8,137			4,496		3,521			(6,972		)	23,718
Interest expense	—		—			—			—		—			(733		)	(733		)
Interest income	—		—			—			—		—			32			32
Earnings (loss) from continuing operations before income taxes	$	19,677	$	(5,141	)	$	8,137		$	4,496	$	3,521		$	(7,673	)	$	23,017
Total assets**	$	295,135	277,226			$	593,075		$	99,062	$	48,920		$	169,489		$	1,482,907
Depreciation and amortization	4,761		3,506			7,082			1,081		132			798			17,360
Capital expenditures	5,870		4,834			5,089			2,536		246			1,235			19,810

*Asset Impairments and other includes a $(3.2) million gain on a lease termination, partially offset by a $0.8 million charge for assets impairments in the Lids Sports Group and a $1.2 million charge for network intrusion expenses.

**Total assets for the Lids Sports Group, Schuh Group and Licensed Brands include $182.5 million, $107.4 million and $0.8 million of goodwill, respectively. The Schuh Group goodwill increased by $2.5 million from February 1, 2014 due to foreign currency translation adjustments. Of the Company's $281.0 million of property and equipment, $65.4 million and $14.9 million relate to property and equipment in the United Kingdom and Canada, respectively.