Segment Information

3 Months Ended

Apr. 30, 2014

Segment Information

NOTE 4 – SEGMENT 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: Wholesale and Retail. The Company’s Wholesale segment includes the designing, manufacturing and distribution of quality watches, in addition to revenue generated from after-sales service activities and shipping. The Retail segment includes the Company’s outlet stores.

The Company divides its business into two major geographic locations: United States operations, and International, which includes the results of all other Company operations. The allocation of geographic revenue is based upon the location of the customer. The Company’s International operations are principally conducted in Europe, the Americas (excluding the United States), the Middle East and Asia and accounted for 20.3%, 12.8%, 8.1% and 7.4%, respectively, of the Company’s total net sales for the three months ended April 30, 2014. For the three months ended April 30, 2013, the Company’s International operations were principally conducted in Europe, the Americas (excluding the United States), the Middle East and Asia and accounted for 17.4%, 11.4%, 9.2% and 8.2%, respectively, of the Company’s total net sales. Substantially all of the Company’s international assets are located in Switzerland and Asia.

Operating Segment Data for the Three Months Ended April 30, 2014 and 2013 (in thousands):

	Net Sales				Operating Income
	2014		2013		2014		2013
Wholesale	$	109,685	$	99,976	$	9,375	$	8,854
Retail		11,236		10,034		1,546		1,151
Consolidated total	$	120,921	$	110,010	$	10,921	$	10,005

	Total Assets
	April 30, 2014		January 31, 2014		April 30, 2013
Wholesale	$	553,833	$	558,266	$	495,861
Retail		21,051		20,344		19,518
Consolidated total	$	574,884	$	578,610	$	515,379

Geographic Location Data for the Three Months Ended April 30, 2014 and 2013 (in thousands):

	Net Sales				Operating (Loss) / Income
	2014		2013		2014			2013
United States	$	62,279	$	58,477	$	(843	)	$	2,435
International		58,642		51,533		11,764			7,570
Consolidated total	$	120,921	$	110,010	$	10,921		$	10,005

United States and International net sales are net of intercompany sales of $64.8 million and $65.9 million for the three months ended April 30, 2014 and 2013, respectively.

	Total Assets
	April 30, 2014		January 31, 2014		April 30, 2013
United States	$	218,760	$	239,890	$	195,836
International		356,124		338,720		319,543
Consolidated total	$	574,884	$	578,610	$	515,379

	Long-Lived Assets
	April 30, 2014		January 31, 2014		April 30, 2013
United States	$	24,969	$	25,943	$	25,938
International		21,837		21,853		20,351
Consolidated total	$	46,806	$	47,796	$	46,289