Segment and Geographic Information

12 Months Ended

Jan. 31, 2025

Segment Reporting [Abstract]

Segment and Geographic Information

NOTE 19 – 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. In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07 “Improvements to Reportable Segment Disclosures” which requires expanded disclosures about an entity’s reportable segments, including more enhanced information about a reportable segment’s expenses, interim segment profit or loss, and how an entity’s chief operating decision maker (“CODM”) uses reported segment profit or loss information in assessing segment performance and allocating resources. The Company adopted this new guidance for the fiscal year ended January 31, 2025, and on a retrospective basis for all periods presented. This ASU does not change how an entity identifies its operating segments.

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 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’s CODM evaluates operating results based on gross profit, defined as net sales less cost of sales, and operating income, defined as gross profit less selling, general and administrative expenses. The CODM uses gross profit and operating income in the budgeting and forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for gross profit and operating income for evaluating performance of the segments and making decisions about allocating capital and other resources to each segment.

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 Americas (excluding the United States), Asia and the Middle East accounted for 31.0%, 9.9%, 8.9% and 7.6%, respectively, of the Company’s total net sales for fiscal 2025. For fiscal 2024, the Company’s International operations in Europe, the Americas (excluding the United States), Asia and the Middle East accounted for 30.9%, 9.4%, 8.1% and 7.9%, respectively, of the Company’s total net sales. For fiscal 2023, the Company’s International operations in Europe, the Americas

(excluding the United States), Asia and the Middle East accounted for 33.2%, 7.9%, 7.6% and 6.4%, 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
	2025		2024		2023
			(As Restated)		(As Restated)
Watch and Accessory Brands:
Owned brands category	$	183,622	$	198,612	$	230,277
Licensed brands category		365,216		354,099		391,867
After-sales service and all other		7,548		7,743		10,506
Total Watch and Accessory Brands		556,386		560,454		632,650
Company Stores		96,992		103,935		111,559
Consolidated total	$	653,378	$	664,389	$	744,209

	Watch and Accessory Brands		Company Stores		Consolidated Total (1) (2)			Watch and Accessory Brands		Company Stores		Consolidated Total (2)			Watch and Accessory Brands		Company Stores		Consolidated Total (2)
	2025		2025		2025			2024		2024		2024			2023		2023		2023
								(As Restated)				(As Restated)			(As Restated)				(As Restated)
Net sales	$	556,386	$	96,992	$	653,378		$	560,454	$	103,935	$	664,389		$	632,650	$	111,559	$	744,209
Cost of sales		261,774		38,464		300,238			259,269		40,961		300,230			274,011		41,070		315,081
Gross profit		294,612		58,528		353,140			301,185		62,974		364,159			358,639		70,489		429,128
Selling, general and administrative		286,874		46,251		333,125			269,882		45,807		315,689			268,369		45,172		313,541
Operating income	$	7,738	$	12,277	$	20,015		$	31,303	$	17,167	$	48,470		$	90,270	$	25,317	$	115,587
Other income, net						7,125							5,994							2,069
Interest expense						(489	)						(497	)						(518	)
Income before income taxes					$	26,651						$	53,967						$	117,138
Depreciation and amortization	$	7,096	$	2,216	$	9,312		$	7,266	$	2,378	$	9,644		$	8,233	$	2,576	$	10,809

	Total Assets				Capital Expenditure
	2025		2024			2025		2024		2023
			(As Restated)
Watch and Accessory Brands	$	668,403	$	697,483		$	5,740	$	7,784	$	4,323
Company Stores		60,828		59,015			2,226		439		2,762
Consolidated total	$	729,231	$	756,498		$	7,966	$	8,223	$	7,085

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

	Net Sales (3)
	2025		2024		2023
			(As Restated)		(As Restated)
United States	$	278,532	$	290,256	$	333,913
International		374,846		374,133		410,296
Consolidated total	$	653,378	$	664,389	$	744,209

	Long-Lived Assets				Operating Lease Right-of-Use Assets				Property, Plant and Equipment, Net
	2025		2024		2025		2024		2025		2024
United States	$	75,160	$	77,156	$	61,916	$	65,206	$	13,244	$	11,950
International		30,769		24,941		24,093		17,455		6,676		7,486
Consolidated total	$	105,929	$	102,097	$	86,009	$	82,661	$	19,920	$	19,436

(1)The operating income in the Watch and Accessory Brands segment included a pre-tax charge of $4.6 million related to the Company's cost-savings initiative for the fiscal year ended January 31, 2025 and a pre-tax charge of $2.5 million of professional fees related to the investigation of allegations of misconduct within the Dubai branch of the Company's Swiss subsidiary.

(2)The operating income in the Watch and Accessory Brands segment included $30.0 million, $30.8 million and $37.0 million of unallocated corporate expenses for the fiscal years ended January 31, 2025, 2024 and 2023, respectively, and $67.0 million, $71.5 million and $81.0 million of certain intercompany profits related to the Company's supply chain operations for the fiscal years ended January 31, 2025, 2024 and 2023, respectively.

(3)The United States and International net sales in the Watch and Accessory Brands segment are net of intercompany sales of $287.6 million, $260.1 million and $350.5 million for the fiscal years ended January 31, 2025, 2024 and 2023, respectively.