Segment Information

6 Months Ended

Jul. 31, 2015

Segment Reporting [Abstract]

Segment Information

NOTE 3 – 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 watches of quality luxury brands or licensed brands, 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 in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 19.8%, 11.9%, 7.7% and 6.5%, respectively, of the Company’s total net sales for the three months ended July 31, 2015. For the three months ended July 31, 2014, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.9%, 11.6%, 8.1% and 7.0%, respectively, of the Company’s total net sales. 

The Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 19.9%, 11.6%, 7.6% and 7.0%, respectively, of the Company’s total net sales for the six months ended July 31, 2015. For the six months ended July 31, 2014, the Company’s International operations in Europe, the Americas (excluding the United States), the Middle East and Asia accounted for 18.9%, 11.4%, 8.5% and 8.1%, respectively, of the Company’s total net sales. Substantially all of the Company’s International assets are located in Switzerland and Hong Kong.

Operating Segment Data for the Three Months Ended July 31, 2015 and 2014 (in thousands):

	Net Sales
	2015		2014
Wholesale:
Luxury brands category	$	52,109	$	50,624
Licensed brands category		74,374		73,796
After-sales service and all other		3,272		3,423
Total Wholesale		129,755		127,843
Retail		15,814		15,748
Consolidated total	$	145,569	$	143,591

	Operating Income
	2015		2014
Wholesale	$	14,869	$	13,809
Retail		3,365		3,359
Consolidated total	$	18,234	$	17,168

Operating Segment Data for the Six Months Ended July 31, 2015 and 2014 (in thousands):

	Net Sales
	2015		2014
Wholesale:
Luxury brands category	$	97,012	$	94,844
Licensed brands category		135,216		135,526
After-sales service and all other		7,124		7,157
Total Wholesale		239,352		237,527
Retail		26,678		26,985
Consolidated total	$	266,030	$	264,512

	Operating Income
	2015		2014
Wholesale	$	20,794	$	23,184
Retail		4,315		4,905
Consolidated total	$	25,109	$	28,089

	Total Assets
	July 31, 2015		January 31, 2015		July 31, 2014
Wholesale	$	568,680	$	562,462	$	569,898
Retail		21,331		20,561		21,545
Consolidated total	$	590,011	$	583,023	$	591,443

Geographic Location Data for the Three Months Ended July 31, 2015 and 2014 (in thousands):

	Net Sales				Operating Income
	2015		2014		2015		2014
United States (1)	$	78,772	$	78,128	$	7,948	$	5,254
International (2)		66,797		65,463		10,286		11,914
Consolidated total	$	145,569	$	143,591	$	18,234	$	17,168

United States and International net sales are net of intercompany sales of $76.7 million and $85.6 million for the three months ended July 31, 2015 and 2014, respectively.

Geographic Location Data for the Six Months Ended July 31, 2015 and 2014 (in thousands):

	Net Sales				Operating Income
	2015		2014		2015		2014
United States (1)	$	143,356	$	140,407	$	10,377	$	4,410
International  (2)		122,674		124,105		14,732		23,679
Consolidated total	$	266,030	$	264,512	$	25,109	$	28,089

United States and International net sales are net of intercompany sales of $158.2 million and $150.3 million for the six months ended July 31, 2015 and 2014, respectively.

(1) The United States operating income included $9.5 million and $5.9 million of unallocated corporate expenses for the three months ended July 31, 2015 and 2014. The United States operating income included $16.6 million and $12.9 million of unallocated corporate expenses for the six months ended July 31, 2015 and 2014.

(2) The International operating income included $10.9 million and $10.6 million of certain intercompany profits related to the Company’s supply chain operations for the three months ended July 31, 2015 and 2014. The International operating income included $19.7 million and $20.1 million of certain intercompany profits related to the Company’s supply chain operations for the six months ended July 31, 2015 and 2014.

	Total Assets
	July 31, 2015		January 31, 2015		July 31, 2014
United States	$	230,209	$	209,660	$	237,558
International		359,802		373,363		353,885
Consolidated total	$	590,011	$	583,023	$	591,443

	Property, Plant and Equipment, Net
	July 31, 2015		January 31, 2015		July 31, 2014
United States	$	25,052	$	25,950	$	25,169
International		17,671		20,723		20,972
Consolidated total	$	42,723	$	46,673	$	46,141