Segment and Geographic Information

3 Months Ended

Apr. 30, 2022

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 16 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company conducts its business in two operating segments: Watch and Accessory Brands and Company Stores. The Company’s Watch and Accessory Brands segment includes the designing, manufacturing and distribution of watches and, to a lesser extent, jewelry and other accessories, of owned and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Company Stores segment includes the Company’s retail outlet business. The Chief Executive Officer of the Company is the chief operating decision maker (“CODM”) and regularly reviews operating results for each of the two operating segments to assess performance and makes operating decisions about the allocation of the Company’s resources.

The Company divides its business into two major geographic locations: United States operations and International, which includes the results of all non-U.S. Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 34.0%, 10.1%, 8.4% and 4.5%, respectively, of the Company’s total net sales for the three months ended April 30, 2022. For the three months ended April 30, 2021, the Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 28.9%, 8.5%, 8.5% and 5.2%, respectively, of the Company’s total net sales.

Operating Segment Data as of and for the Three Months Ended April 30, 2022 and 2021 (in thousands):

	Net Sales
	2022		2021
Watch and Accessory Brands:
Owned brands category	$	53,170	$	48,371
Licensed brands category		88,840		67,626
After-sales service and all other		1,358		282
Total Watch and Accessory Brands		143,368		116,279
Company Stores		20,056		18,519
Consolidated total	$	163,424	$	134,798

	Operating Income (3)
	2022		2021
Watch and Accessory Brands	$	21,547	$	8,785
Company Stores		3,747		4,471
Consolidated total	$	25,294	$	13,256

	Total Assets
	April 30,  2022		January 31,  2022		April 30,  2021
Watch and Accessory Brands	$	670,531	$	701,986	$	636,755
Company Stores		69,453		59,174		57,951
Consolidated total	$	739,984	$	761,160	$	694,706

Geographic Location Data as of and for the Three Months Ended April 30, 2022 and 2021 (in thousands):

	Net Sales				Operating Income (3)
	2022		2021		2022		2021
United States (1)	$	70,223	$	65,893	$	548	$	759
International (2)		93,201		68,905		24,746		12,497
Consolidated total	$	163,424	$	134,798	$	25,294	$	13,256

United States and International net sales are net of intercompany sales of $96.2 million and $69.7 million for the three months ended April 30, 2022 and 2021, respectively.

(1)The United States operating income included $13.5 million and $8.9 million of unallocated corporate expenses for the three months ended April 30, 2022 and 2021, respectively.

(2)The International operating income included $19.1 million and $13.9 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended April 30, 2022 and 2021, respectively.

(3)For both the three months ended April 30, 2022 and 2021, in the United States locations of the Watch and Accessory Brands segment, operating income included a charge of $0.1 million of expenses related to the amortization of intangible assets and deferred compensation associated with the MVMT brand. In addition, in the International locations of the Watch and Accessory Brands segment for both the three months ended April 30, 2022 and 2021, operating income included a charge of $0.7 million of expenses related to the amortization of acquired intangible assets as a result of the Company’s acquisition of the Olivia Burton brand.

	Total Assets
	April 30,  2022		January 31,  2022		April 30,  2021
United States	$	314,738	$	352,806	$	345,094
International		425,246		408,354		349,612
Consolidated total	$	739,984	$	761,160	$	694,706

	Property, Plant and Equipment, Net
	April 30,  2022		January 31,  2022		April 30,  2021
United States	$	12,876	$	13,246	$	13,778
International		5,558		6,224		6,821
Consolidated total	$	18,434	$	19,470	$	20,599