Segment and Geographic Information

9 Months Ended

Oct. 31, 2024

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, Asia, the Americas (excluding the United States) and the Middle East accounted for 33.6%, 9.9%, 8.8% and 8.8%, respectively, of the Company’s total net sales for the three months ended October 31, 2024. For the three months ended October 31, 2023, the Company’s International operations in Europe, the Middle East, Asia and the Americas (excluding the United States) accounted for 34.0%, 8.8%, 8.4% and 8.0%, respectively, of the Company’s total net sales. The Company’s International operations in Europe, the Americas (excluding the United States), Asia and the Middle East accounted for 31.8%, 9.2%, 9.1% and 8.7%, respectively, of the Company’s total net sales for the nine months ended October 31, 2024. For the nine months ended October 31, 2023, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 31.4%, 9.4%, 9.1% and 8.2%, respectively, of the Company’s total net sales.

Certain prior year reclassifications have been made to the allocation of geographic revenue between the Middle East and Asia.

Operating Segment Data for the Three Months Ended October 31, 2024 and 2023 (in thousands):

	Net Sales
	2024		2023
Watch and Accessory Brands:
Owned brands category	$	50,389	$	55,416
Licensed brands category		111,402		107,355
After-sales service and all other		72		2,368
Total Watch and Accessory Brands		161,863		165,139
Company Stores		20,864		22,547
Consolidated total	$	182,727	$	187,686

	Operating Income (3)
	2024		2023
Watch and Accessory Brands	$	5,272	$	18,489
Company Stores		1,278		2,203
Consolidated total	$	6,550	$	20,692

Operating Segment Data as of and for the Nine Months Ended October 31, 2024 and 2023 (in thousands):

	Net Sales
	2024		2023
Watch and Accessory Brands:
Owned brands category	$	135,802	$	149,436
Licensed brands category		274,359		272,012
After-sales service and all other		5,028		3,370
Total Watch and Accessory Brands		415,189		424,818
Company Stores		63,520		68,163
Consolidated total	$	478,709	$	492,981

	Operating Income (3)
	2024		2023
Watch and Accessory Brands	$	7,475	$	31,907
Company Stores		5,416		9,332
Consolidated total	$	12,891	$	41,239

	Total Assets
	October 31,  2024		January 31,  2024		October 31,  2023
Watch and Accessory Brands	$	700,388	$	710,067	$	703,253
Company Stores		65,488		59,015		60,144
Consolidated total	$	765,876	$	769,082	$	763,397

Geographic Location Data for the Three Months Ended October 31, 2024 and 2023 (in thousands):

	Net Sales				Operating (Loss)/Income (3)
	2024		2023		2024			2023
United States (1)	$	71,147	$	76,575	$	(15,117	)	$	(5,256	)
International (2)		111,580		111,111		21,667			25,948
Consolidated total	$	182,727	$	187,686	$	6,550		$	20,692

United States and International net sales are net of intercompany sales of $82.5 million and $86.8 million for the three months ended October 31, 2024 and 2023, respectively.

Geographic Location Data as of and for the Nine Months Ended October 31, 2024 and 2023 (in thousands):

	Net Sales				Operating (Loss)/Income (3)
	2024		2023		2024			2023
United States (1)	$	197,286	$	206,602	$	(29,447	)	$	(17,928	)
International (2)		281,423		286,379		42,338			59,167
Consolidated total	$	478,709	$	492,981	$	12,891		$	41,239

United States and International net sales are net of intercompany sales of $226.5 million and $200.3 million for the nine months ended October 31, 2024 and 2023, respectively.

(1)The United States operating loss included $11.9 million and $14.3 million of unallocated corporate expenses for the three months ended October 31, 2024 and 2023, respectively. The United States operating loss included $30.0 million and $36.0 million of unallocated corporate expenses for the nine months ended October 31, 2024 and 2023, respectively.

(2)The International operating income included $20.5 million and $22.9 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended October 31, 2024 and 2023, respectively. The International operating income included $48.8 million and $55.4 million of certain intercompany profits related to the Company’s supply chain operations for the nine months ended October 31, 2024 and 2023, respectively.

(3)The operating (loss)/income in the United States and International locations of the Watch and Accessory Brands segment included a pre-tax charge of $1.5 million and $1.2 million, respectively, related to the Company’s cost-savings initiative for the three and nine months ended October 2024.

	Total Assets
	October 31,  2024		January 31,  2024		October 31,  2023
United States	$	426,642	$	361,980	$	373,812
International		339,234		407,102		389,585
Consolidated total	$	765,876	$	769,082	$	763,397

	Property, Plant and Equipment, Net
	October 31,  2024		January 31,  2024		October 31,  2023
United States	$	13,403	$	11,950	$	12,212
International		7,077		7,486		7,246
Consolidated total	$	20,480	$	19,436	$	19,458