SEGMENT INFORMATION

3 Months Ended

Apr. 04, 2020

The Company reports segment information based on the “management approach”. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments.

The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, China (including Hong Kong, Macau and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. Each reportable operating segment provides similar products and services.

The Company evaluates the performance of its reportable segments based on net sales and operating income (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes

peripheral revenue generating activities from factories and intellectual property and general corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses that are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes.

Summary information by operating segment was as follows (in thousands):



	For the 14 Weeks Ended April 4, 2020					For the 13 Weeks Ended March 30, 2019
	Net Sales		Operating Income (Loss)			Net Sales		Operating Income (Loss)
Americas	$	152,916	$	(61,644	)	$	190,369	$	10,918
Europe	128,250		(2,655		)	153,277		14,280
Asia	106,187		11,239			116,900		21,041
Corporate	3,365		(81,281		)	4,722		(66,183		)
Consolidated	$	390,718	$	(134,341	)	$	465,268	$	(19,944	)

The following tables reflect net sales for each class of similar products in the periods presented (in thousands, except percentage data):



	For the 14 Weeks Ended April 4, 2020				For the 13 Weeks Ended March 30, 2019
	Net Sales		Percentage of Total		Net Sales		Percentage of Total
Watches	$	309,925	79.3	%	$	366,178	78.7	%
Leathers	47,307		12.1		53,905		11.6
Jewelry	23,217		6.0		31,160		6.7
Other	10,269		2.6		14,025		3.0
Total	$	390,718	100.0	%	$	465,268	100.0	%