Segment Information

3 Months Ended

May 01, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: Americas Retail, Americas Wholesale, Europe, Asia and Licensing. The Company’s Americas Retail, Americas Wholesale, Europe and Licensing reportable segments are the same as their respective operating segments. Certain components of the Company’s Asia operating segment are separate operating segments based on region, which have been aggregated into the Asia reportable segment for disclosure purposes.

Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before corporate performance-based compensation costs, asset impairment charges, net gains (losses) on lease modifications, restructuring charges and certain non-recurring credits (charges), if any. The Company believes this segment reporting reflects how its business segments are managed and how each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions.

Net revenue and earnings (loss) from operations are summarized as follows (in thousands):    

	Three Months Ended
	May 1, 2021		May 2, 2020
Net revenue:
Americas Retail	$	155,535	$	74,584
Americas Wholesale	45,430		25,875
Europe	241,852		106,473
Asia	55,660		40,385
Licensing	21,525		12,934
Total net revenue	$	520,002	$	260,251
Earnings (loss) from operations:
Americas Retail	$	20,274	$	(36,673)
Americas Wholesale	11,555		1,624
Europe	4,198		(44,406)
Asia	(1,808)		(22,777)
Licensing	19,431		10,094
Total segment earnings (loss) from operations	53,650		(92,138)
Corporate overhead	(28,776)		(16,921)
Asset impairment charges1	(441)		(52,972)
Net gains (losses) on lease modifications2	2,145		(456)
Total earnings (loss) from operations	$	26,578	$	(162,487)

______________________________________________________________________

Notes:

1During the three months ended May 1, 2021 and May 2, 2020 , the Company recognized asset impairment charges related primarily to impairment of certain operating lease ROU assets and impairment of property and equipment related to certain retail locations resulting from lower revenue and future cash flow projections from the ongoing effects of the COVID-19 pandemic. Refer to Note 2 and Note 15 for more information regarding these asset impairment charges.

2During the three months ended May 1, 2021 and May 2, 2020, the Company recorded net gains (losses) on lease modifications related primarily to the early termination of lease agreements for certain of the Company’s retail locations.

The table below presents information regarding geographic areas in which the Company operated. Net revenue is classified primarily based on the country where the Company’s customer is located (in thousands):

	Three Months Ended
	May 1, 2021		May 2, 2020
Net revenue:
U.S.	$	157,066	$	69,465
Italy	47,553		19,352
Germany	34,678		11,362
South Korea	27,809		21,224
Canada	26,640		16,677
Spain	25,507		12,996
Other foreign countries	179,224		96,241
Total product sales	498,477		247,317
Net royalties	21,525		12,934
Net revenue	$	520,002	$	260,251

Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year.