Segment Information

6 Months Ended

Jul. 31, 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 were principally conducted in Europe, the Americas (excluding the United States), the Middle East and Asia and accounted for 18.9%, 11.6%, 8.1% and 7.0%, respectively, of the Company’s total net sales for the three months ended July 31, 2014. For the three months ended July 31, 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 18.1%, 11.7%, 8.8% and 8.4%, respectively, of the Company’s total net sales. 

The Company’s International operations were principally conducted in Europe, the Americas (excluding the United States), the Middle East and Asia and accounted for 18.9%, 11.4%, 8.5% and 8.1%, respectively, of the Company’s total net sales for the six months ended July 31, 2014. For the six months ended July 31, 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 18.3%, 11.5%, 8.9% and 8.3%, 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 July 31, 2014 and 2013 (in thousands):

	Net Sales
	2014		2013
Wholesale:
Luxury brand category	$	50,624	$	51,547
Licensed brands category		73,796		68,603
After-sales service and all other		3,423		3,606
Total Wholesale		127,843		123,756
Retail		15,748		14,545
Consolidated total	$	143,591	$	138,301

	Operating Income
	2014		2013
Wholesale	$	13,809	$	14,152
Retail		3,359		2,888
Consolidated total	$	17,168	$	17,040

Operating Segment Data for the Six Months Ended July 31, 2014 and 2013 (in thousands):

	Net Sales
	2014		2013
Wholesale:
Luxury brand category	$	94,844	$	95,910
Licensed brands category		135,526		120,403
After-sales service and all other		7,157		7,418
Total Wholesale		237,527		223,731
Retail		26,985		24,580
Consolidated total	$	264,512	$	248,311

	Operating Income
	2014		2013
Wholesale	$	23,184	$	23,006
Retail		4,905		4,039
Consolidated total	$	28,089	$	27,045

	Total Assets
	July 31, 2014		January 31, 2014		July 31, 2013
Wholesale	$	569,898	$	558,266	$	522,940
Retail		21,545		20,344		20,701
Consolidated total	$	591,443	$	578,610	$	543,641

Geographic Location Data for the Three Months Ended July 31, 2014 and 2013 (in thousands):

	Net Sales				Operating Income
	2014		2013		2014		2013
United States (1)	$	78,128	$	72,506	$	5,254	$	367
International  (2)		65,463		65,795		11,914		16,673
Consolidated total	$	143,591	$	138,301	$	17,168	$	17,040

United States and International net sales are net of intercompany sales of $85.6 million and $88.5 million for the three months ended July 31, 2014 and 2013, respectively.

Geographic Location Data for the Six Months Ended July 31, 2014 and 2013 (in thousands):

	Net Sales				Operating Income
	2014		2013		2014		2013
United States (1)	$	140,407	$	130,397	$	4,410	$	2,520
International  (2)		124,105		117,914		23,679		24,525
Consolidated total	$	264,512	$	248,311	$	28,089	$	27,045

United States and International net sales are net of intercompany sales of $150.3 million and $154.4 million for the six months ended July 31, 2014 and 2013, respectively.

(1) The United States operating income includes unallocated corporate expenses for the three and six months ended July 31, 2014 and     2013.

(2) The International operating income includes certain intercompany profits related to the Company’s supply chain operations for the three and six months ended July 31, 2014 and 2013.

	Total Assets
	July 31, 2014		January 31, 2014		July 31, 2013
United States	$	237,558	$	239,890	$	225,167
International		353,885		338,720		318,474
Consolidated total	$	591,443	$	578,610	$	543,641

	Long-Lived Assets
	July 31, 2014		January 31, 2014		July 31, 2013
United States	$	25,169	$	25,943	$	25,553
International		20,972		21,853		21,743
Consolidated total	$	46,141	$	47,796	$	47,296