Note 7 – Segments

The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale sales also include revenues from license agreements related to trademarks owned by the DKNY, Donna Karan, G.H. Bass, Andrew Marc and Vilebrequin businesses. The retail operations segment consists primarily of Wilsons Leather, G.H. Bass and DKNY stores, as well as a limited number of Karl Lagerfeld Paris and Calvin Klein Performance stores. Sales through the Company’s owned websites, with the exception of Vilebrequin, are also included in the retail operations segment.

The following information is presented for the three and nine-month periods indicated below:


	Three Months Ended October 31, 2018
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,005,358	$	110,934	$	(43,310)	$	1,072,982
Cost of goods sold		677,011		57,181		(43,310)		690,882
Gross profit		328,347		53,753		—		382,100
Selling, general and administrative expenses		166,423		65,629		—		232,052
Depreciation and amortization		7,709		2,324		—		10,033
Operating profit (loss)	$	154,215	$	(14,200)	$	—	$	140,015


	Three Months Ended October 31, 2017
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales (2)	$	966,820	$	118,709	$	(60,536)	$	1,024,993
Cost of goods sold (3)		636,636		57,797		(60,536)		633,897
Gross profit		330,184		60,912		—		391,096
Selling, general and administrative expenses		174,679		68,061		—		242,740
Depreciation and amortization		6,790		116		—		6,906
Operating profit (loss)	$	148,715	$	(7,265)	$	—	$	141,450


	Nine Months Ended October 31, 2018
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,077,628	$	322,115	$	(90,320)	$	2,309,423
Cost of goods sold		1,381,342		170,230		(90,320)		1,461,252
Gross profit		696,286		151,885		—		848,171
Selling, general and administrative expenses		439,014		193,969		—		632,983
Depreciation and amortization		22,192		6,676		—		28,868
Operating profit (loss)	$	235,080	$	(48,760)	$	—	$	186,320


	Nine Months Ended October 31, 2017
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales (2)	$	1,887,902	$	324,329	$	(120,191)	$	2,092,040
Cost of goods sold (3)		1,251,372		165,058		(120,191)		1,296,239
Gross profit		636,530		159,271		—		795,801
Selling, general and administrative expenses		433,323		202,677		—		636,000
Depreciation and amortization		20,403		7,077		—		27,480
Operating profit (loss)	$	182,804	$	(50,483)	$	—	$	132,321

⁽¹⁾

Represents intersegment sales to the Company’s retail operations segment.

⁽²⁾

Certain reclassifications have been made between the wholesale operations segment and the elimination column as a result of sales eliminations within the wholesale operations segment being misclassified as inter-segment eliminations.

⁽³⁾

Certain reclassifications have been made as a result of the Company’s reclassifying the impact of certain components of foreign currency gain (loss) from cost of goods sold and interest expense to other income.

The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:


	October 31, 2018		October 31, 2017		January 31, 2018
	(In thousands)
Wholesale	$	2,155,840	$	1,871,373	$	1,554,191
Retail		224,593		251,649		215,568
Corporate		170,635		136,031		145,418
Total assets	$	2,551,068	$	2,259,053	$	1,915,177