Segment and Geographic Information

12 Months Ended

Jan. 31, 2023

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 20 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance.

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 32.8%, 10.3%, 7.8% and 4.7%, respectively, of the Company’s total net sales for fiscal 2023. For fiscal 2022, the Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 33.9%, 7.8%, 6.5% and 4.5%, respectively, of the Company’s total net sales. For fiscal 2021, the Company’s International operations in Europe, the Middle East, the Americas (excluding the United States) and Asia accounted for 37.4%, 7.3%, 6.6% and 6.3%, respectively, of the Company’s total net sales. A vast majority of the Company’s tangible International assets are owned by the Company’s Swiss and Hong Kong subsidiaries.

Operating Segment Data as of and for the Fiscal Year Ended January 31, (in thousands):

	Net Sales
	2023		2022		2021
Watch and Accessory Brands:
Owned brands category	$	230,277	$	249,940	$	178,173
Licensed brands category		399,556		368,354		262,367
After-sales service and all other		10,506		7,929		6,822
Total Watch and Accessory Brands		640,339		626,223		447,362
Company Stores		111,559		106,170		59,035
Consolidated total	$	751,898	$	732,393	$	506,397

	Operating Income/(Loss) (1) (2) (3) (4)
	2023		2022		2021
Watch and Accessory Brands	$	95,037	$	85,619	$	(152,662	)
Company Stores		25,317		31,872		10,535
Consolidated total	$	120,354	$	117,491	$	(142,127	)

	Total Assets				Capital Expenditure
	2023		2022			2023		2022		2021
Watch and Accessory Brands	$	722,267	$	701,986		$	4,323	$	2,956	$	2,909
Company Stores		65,438		59,174			2,762		2,700		109
Consolidated total	$	787,705	$	761,160		$	7,085	$	5,656	$	3,018

	Depreciation and Amortization
	2023		2022		2021
Watch and Accessory Brands	$	8,233	$	9,810	$	11,462
Company Stores		2,576		2,653		2,650
Consolidated total	$	10,809	$	12,463	$	14,112

Geographic Location Data as of and for the Fiscal Year Ended January 31, (in thousands):

	Net Sales (5)						Operating Income/(Loss) (1) (2) (3) (4) (6) (7)
	2023		2022		2021		2023		2022		2021
United States	$	333,913	$	346,092	$	214,818	$	21,178	$	40,476	$	(128,430	)
International		417,985		386,301		291,579		99,176		77,015		(13,697	)
Consolidated total	$	751,898	$	732,393	$	506,397	$	120,354	$	117,491	$	(142,127	)

	Total Assets				Property, Plant and Equipment, Net
	2023		2022		2023		2022
United States	$	425,209	$	352,806	$	13,422	$	13,246
International		362,496		408,354		5,277		6,224
Consolidated total	$	787,705	$	761,160	$	18,699	$	19,470

(1)Fiscal 2021 operating loss in the United States locations of the Watch and Accessory Brands segment included a charge of $99.7 million related to the impairment of goodwill and intangible assets associated with the MVMT brand. Fiscal 2021 operating loss in the International locations of the Watch and Accessory Brands segment included a charge of $56.2 million related to the impairment of goodwill associated with the Olivia Burton brand and City Time Joint Venture.

(2)Fiscal 2022 operating income in the United States locations and the International locations of the Watch and Accessory Brands segment included income of $0.1 million and $1.0 million, respectively, related to a reversal in certain corporate initiatives charges due to a change in estimate that the Company established in fiscal 2021 in response to the impact on its business due to the COVID-19 pandemic primarily due to a collection of a previously reserved receivable. Fiscal 2021 operating loss in the United States locations and the International locations of the Watch and Accessory Brands segment included a charge of $8.0 million and $4.6 million, respectively, related to the corporate initiatives that the Company established in response to the impact on its business due to the COVID-19 pandemic.

(3)Fiscal 2023, 2022 and 2021 operating income/(loss) in the United States locations of the Watch and Accessory Brands segment included $0.3 million, $0.4 million and $1.6 million, respectively, of expenses primarily related to the amortization of intangible assets, deferred compensation and certain accounting adjustments associated with the MVMT brand.

(4)Fiscal 2023, 2022 and 2021 operating (loss)/income in the International locations of the Watch and Accessory Brands segment included $2.6 million, $2.9 million and $2.7 million, respectively, of expenses primarily related to the amortization of acquired intangible assets, as a result of the Company’s acquisition of the Olivia Burton brand.

(5)The United States and International net sales are net of intercompany sales of $350.5 million, $358.9 million and $236.9 million for the fiscal years ended January 31, 2023, 2022 and 2021, respectively.

(6)The United States operating income/(loss) included $37.0 million, $38.7 million and $29.1 million of unallocated corporate expenses for the fiscal years ended January 31, 2023, 2022 and 2021, respectively.

(7)The International operating income/(loss) included $81.0 million, $80.5 million and $63.0 million of certain intercompany profits related to the Company’s supply chain operations for the fiscal years ended January 31, 2023, 2022 and 2021, respectively.