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Business Segment Information
 6 Months Ended
Aug. 03, 2019
Segment Reporting [Abstract]  
Business Segment Information
Business Segment Information

During the three and six months ended August 3, 2019 and August 4, 2018, the Company operated four reportable business segments (not including corporate): (i) Journeys Group, comprised of the Journeys, Journeys Kidz and Little Burgundy retail footwear chains, e-commerce and catalog operations; (ii) Schuh Group, comprised of the Schuh retail footwear chain and e-commerce operations; (iii) Johnston & Murphy Group, comprised of Johnston & Murphy retail operations, e-commerce operations, catalog, Trask e-commerce operations and wholesale distribution of products under the Johnston & Murphy® and H.S. Trask® brands; and (iv) Licensed Brands, comprised of Dockers® Footwear, sourced and marketed under a license from Levi Strauss & Company; and other brands.

The Company completed the sale of Lids Sports Group on February 2, 2019. As a result of the sale, the Company met the requirements to report the results of Lids Sports Group as a discontinued operation. Certain corporate overhead costs and other allocated costs previously allocated to the Lids Sports Group business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations whereas bank fees and certain legal fees related to the Lids Sports Group business segment previously excluded from segment earnings were reclassified to discontinued operations. The costs of Lids Sports Group headquarters building, which was not included in the sale, was reclassified to corporate and other in segment earnings. As a result, the Company's segment information has been adjusted to exclude discontinued operations for the three and six months ended August 4, 2018.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 1, under Item 8 in the Company's Annual Report on Form10-K for the fiscal year ended February 2, 2019).

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 and Schuh 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, pension asset, deferred income taxes, deferred note expense on revolver debt and corporate fixed assets, including the former Lids Sports Group headquarters building, and miscellaneous investments. 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, bank fees, interest expense, interest income, asset impairment charges and other, including major litigation and major lease terminations.

Note 10
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
August 3, 2019
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In Thousands
 
 
 
 
 
Sales
$
315,175

 
$
92,476

 
$
67,267

 
$
11,580

 
$
72

 
$
486,570

Intercompany sales
—

 
—

 
—

 
3

 
—

 
3

Net sales to external customers
$
315,175

 
$
92,476

 
$
67,267

 
$
11,583

 
$
72

 
$
486,573

Segment operating income (loss)
$
11,329

 
$
39

 
$
1,518

 
$
(251
)
 
$
(7,898
)
 
$
4,737

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(1,775
)
 
(1,775
)
Operating income (loss)
11,329

 
39

 
1,518

 
(251
)
 
(9,673
)
 
2,962

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
93

 
93

Interest expense
—

 
—

 
—

 
—

 
(835
)
 
(835
)
Interest income
—

 
—

 
—

 
—

 
488

 
488

Earnings (loss) from continuing
operations before income taxes
$
11,329

 
$
39

 
$
1,518

 
$
(251
)
 
$
(9,927
)
 
$
2,708

Total assets(2)
$
997,604

 
$
357,537

 
$
217,499

 
$
18,768

 
$
164,119

 
$
1,755,527

Depreciation and amortization(3)
7,163

 
2,897

 
1,498

 
117

 
640

 
12,315

Capital expenditures
4,130

 
1,094

 
958

 
188

 
140

 
6,510


(1)Asset impairments and other includes a $1.0 million charge for lease terminations in Schuh Group and a $0.7 million charge for asset impairments, which includes $0.6 million in Schuh Group and $0.1 million in Journeys Group.

(2)Total assets for the Schuh Group and Journeys Group include $77.4 million and $9.8 million of goodwill, respectively. Goodwill for the Schuh Group and Journeys Group decreased by $5.9 million and $0.1 million, respectively, from February 2, 2019, due to foreign currency translation adjustments. Of the Company's $261.9 million of property and equipment, $38.8 million and $11.5 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $12.3 million in depreciation expense for the three months ended August 3, 2019.





















Note 10
Business Segment Information, Continued

Three Months Ended
 
 
 
 
 
 
 
 
 
 
 
August 4, 2018
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In Thousands
 
 
 
 
 
Sales
$
304,995

 
98,159

 
$
68,441

 
$
15,338

 
$
84

 
$
487,017

Intercompany sales
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Net sales to external customers
$
304,995

 
$
98,159

 
$
68,441

 
$
15,336

 
$
84

 
$
487,015

Segment operating income (loss)
$
7,038

 
$
1,073

 
$
715

 
$
(437
)
 
$
(7,343
)
 
$
1,046

Asset impairments and other(1)
—

 
—

 
—

 
—

 
29

 
29

Operating income (loss)
7,038

 
1,073

 
715

 
(437
)
 
(7,314
)
 
1,075

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
29

 
29

Interest expense
—

 
—

 
—

 
—

 
(1,113
)
 
(1,113
)
Interest income
—

 
—

 
—

 
—

 
10

 
10

Earnings (loss) from continuing
operations before income taxes
$
7,038

 
$
1,073

 
$
715

 
$
(437
)
 
$
(8,388
)
 
$
1

Total assets ongoing operations
$
483,954

 
229,982

 
$
133,933

 
$
23,593

 
$
170,671

 
$
1,042,133

Assets from discontinued operations
 
 
 
 
 
 
 
 
 
 
325,663

Total assets (2)
 
 
 
 
 
 
 
 
 
 
$
1,367,796

Depreciation and amortization(3)
6,886

 
3,533

 
1,592

 
161

 
657

 
12,829

Capital expenditures(4)
3,853

 
1,068

 
1,498

 
21

 
917

 
7,357


(1)Asset impairments and other includes a $0.3 million charge for asset impairments in Journeys Group and a $0.1 million charge for legal and other matters, offset by a gain of $(0.4) million related to Hurricane Maria.

(2)Total assets for the Schuh Group and Journeys Group include $82.7 million and $9.9 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased by $7.2 million and $0.5 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $287.3 million of property and equipment, $48.3 million and $13.6 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $12.8 million in depreciation expense for the three months ended August 4, 2018. Excludes $6.4 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4) Excludes $4.2 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.














Note 10
Business Segment Information, Continued

Six Months Ended
 
 
 
 
 
 
 
 
 
 
 
August 3, 2019
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
Sales
$
639,147

 
$
169,320

 
$
142,001

 
$
31,666

 
$
90

 
$
982,224

Intercompany Sales
—

 
—

 
—

 
—

 
—

 
—

Net sales to external customers
$
639,147

 
$
169,320

 
$
142,001

 
$
31,666

 
$
90

 
$
982,224

Segment operating income (loss)
$
30,305

 
$
(5,389
)
 
$
6,624

 
$
178

 
$
(18,628
)
 
$
13,090

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(1,044
)
 
(1,044
)
Operating income (loss)
30,305

 
(5,389
)
 
6,624

 
178

 
(19,672
)
 
12,046

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
179

 
179

Interest expense
—

 
—

 
—

 
—

 
(1,683
)
 
(1,683
)
Interest income
—

 
—

 
—

 
—

 
1,502

 
1,502

Earnings (loss) from continuing operations
before income taxes
$
30,305

 
$
(5,389
)
 
$
6,624

 
$
178

 
$
(19,674
)
 
$
12,044

Total assets (2)
$
997,604

 
$
357,537

 
$
217,499

 
$
18,768

 
$
164,119

 
$
1,755,527

Depreciation and amortization(3)
14,483

 
5,996

 
3,124

 
265

 
1,250

 
25,118

Capital expenditures
8,097

 
2,767

 
1,820

 
250

 
317

 
13,251


(1)Asset Impairments and other charge includes a $1.0 million charge for asset impairments, which includes $0.1 million for Journeys Group and $0.9 million for Schuh Group.

(2)Total assets for the Schuh Group and Journeys Group include $77.4 million and $9.8 million of goodwill, respectively. Goodwill for the Schuh Group and Journeys Group decreased by $5.9 million and $0.1 million, respectively, from February 2, 2019, due to foreign currency translation adjustments. Of the Company's $261.9 million of property and equipment, $38.8 million and $11.5 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $25.1 million in depreciation expense for the six months ended August 3, 2019.

























Note 10
Business Segment Information, Continued

Six Months Ended
 
 
 
 
 
 
 
 
 
 
 
August 4, 2018
Journeys Group
 
Schuh Group
 
Johnston
& Murphy
Group
 
Licensed
Brands
 
Corporate
& Other
 
Consolidated
In thousands
 
 
 
 
 
Sales
611,137

 
178,425

 
144,125

 
39,404

 
146

 
$
973,237

Intercompany Sales
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Net sales to external customers
$
611,137

 
$
178,425

 
$
144,125

 
$
39,401

 
$
146

 
$
973,234

Segment operating income (loss)
20,030

 
(4,567
)
 
5,582

 
(161
)
 
(15,008
)
 
$
5,876

Asset impairments and other(1)
—

 
—

 
—

 
—

 
(1,089
)
 
(1,089
)
Operating income (loss)
20,030

 
(4,567
)
 
5,582

 
(161
)
 
(16,097
)
 
4,787

Other components of net periodic benefit cost
—

 
—

 
—

 
—

 
37

 
37

Interest expense
—

 
—

 
—

 
—

 
(2,160
)
 
(2,160
)
Interest income
—

 
—

 
—

 
—

 
29

 
29

Earnings (loss) from continuing operations before income taxes
$
20,030

 
$
(4,567
)
 
$
5,582

 
$
(161
)
 
$
(18,191
)
 
$
2,693

Total assets ongoing operations
483,954

 
229,982

 
133,933

 
23,593

 
170,671

 
$
1,042,133

Assets from discontinued operations
 
 
 
 
 
 
 
 
 
 
325,663

Total assets (2)
 
 
 
 
 
 
 
 
 
 
$
1,367,796

Depreciation and amortization(3)
13,681

 
7,460

 
3,160

 
316

 
1,461

 
26,078

Capital expenditures(4)
14,396

 
3,975

 
2,968

 
81

 
980

 
22,400


(1)Asset Impairments and other charge includes a $1.3 million charge for asset impairments, which includes $0.5 million for Journeys Group and $0.8 million for Schuh Group, and a $0.3 million charge for legal and other matters, partially offset by a $(0.5) million gain related to Hurricane Maria.

(2)Total assets for Schuh Group and Journeys Group include $82.7 million and $9.9 million of goodwill, respectively. Goodwill for Schuh Group and Journeys Group decreased by $7.2 million and $0.5 million, respectively, from February 3, 2018, due to foreign currency translation adjustments. Of the Company's $287.3 million of property and equipment, $48.3 million and $13.6 million relate to property and equipment in the United Kingdom and Canada, respectively.

(3)Includes $26.0 million in depreciation expense for the six months ended August 4, 2018. Excludes $12.8 million of depreciation and amortization related to Lids Sports Group. This amount is included in depreciation and amortization in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.

(4) Excludes $8.7 million of capital expenditures related to Lids Sports Group. This amount is included in capital expenditures in the Condensed Consolidated Statements of Cash Flows as the Company did not segregate cash flows related to discontinued operations.