Segment operations

3 Months Ended

Oct. 01, 2011

Segment operations [Abstract]

Segment operations

13. Segment operations

The Company primarily markets footwear and accessories products sold predominantly in North America and operates with two reportable segments which include: (1) Footwear that encompasses primarily slippers, sandals, hybrid and fashion footwear, slipper socks and hosiery; and (2) Accessories products including shoe and foot care products, handbags, tote bags and other travel accessories. The accounting policies of the reportable segments are the same, except that the disaggregated information has been prepared using certain management reports, which by their very nature require estimates.

Effective with the first quarter of fiscal 2012, the Company implemented organizational changes in its reporting structure which included the creation of a separate Business Unit President for each operating unit, with each President reporting to the Chief Executive Officer (“CEO”). This Business Unit President has financial performance responsibility for the operating unit. The measure of such segment operating profit was redefined and our internal financial reporting structure changed accordingly.

While many selling, general and administrative (“SGA”) expenses are direct to each operating unit, certain corporate support expenses are incurred and assigned to the respective operating units based on estimated usage of Company services. Operating profit as measured for each segment includes sales, cost of sales, direct and allocated SGA expenses. This segment measure of operating profit or loss, as defined, is the primary indicator of financial performance used by management.

Other corporate expenses incurred are deemed to be applicable to the Company as a whole and are not allocated to any specific business segment. These unallocated expenses primarily include areas such as the Company’s corporate and governance functions, including the CEO, Chief Financial Officer and Board of Directors, as well as expense areas including incentive bonus, severance, stock compensation, pension, professional fees and similar corporate expenses. These unallocated expenses for the first quarter of fiscal 2012 and the first quarter of fiscal 2011 were $2,811 and $1,876, respectively. Segment operating profit, as reported for the first quarter of fiscal 2012 and the first quarter of fiscal 2011, is based on the same definition of operating profit as described above.

First quarter
Fiscal 2012	Footwear		Accessories		Unallocated Corporate			Total
Net sales	$	42,175	$	8,055	$	—		$	50,230
Gross profit		17,644		4,609		—			22,253
Operating profit		12,395		1,789		(2,811	)		11,373
Total assets		66,107		50,807		10,843			127,757

First quarter
Fiscal 2010	Footwear		Accessories		Unallocated Corporate			Total
Net sales	$	36,269	$	—	$	—		$	36,269
Gross profit		14,196		—		—			14,196
Operating profit		8,300		—		(1,876	)		6,424

As of July 2, 2011	Footwear		Accessories		Unallocated Corporate		Total
Total assets	$	52,619	$	52,506		10,854	$	115,979

Unallocated corporate assets comprised corporate assets including building, software, furniture and equipment, as well as long-term deferred tax assets, cash surrender assets associated with insurance policies and other nominal intangible or deposit type assets held by the Company.