Segment Information

3 Months Ended

Apr. 29, 2023

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 (in thousands):

	Three Months Ended
	Apr 29, 2023		Apr 30, 2022
Net revenue:
Americas Retail	$	143,544	$	166,485
Americas Wholesale	51,393		68,357
Europe	280,198		276,009
Asia	70,775		56,222
Licensing	23,888		26,400
Total net revenue	$	569,798	$	593,473
Earnings (loss) from operations:
Americas Retail	$	(3,287)	$	14,266
Americas Wholesale	13,093		17,397
Europe	1,593		17,890
Asia	3,830		(3,487)
Licensing	22,295		24,444
Total segment earnings from operations	37,524		70,510
Corporate overhead	(36,512)		(33,192)
Asset impairment charges1	(1,934)		(1,544)
Net gains on lease modifications2	—		601
Total earnings (loss) from operations	$	(922)	$	36,375

______________________________________________________________________

Notes:

1    During the three months ended April 29, 2023 and April 30, 2022, the Company recognized asset impairment charges related primarily to property and equipment of certain retail locations resulting from under-performance and expected store closures. Refer to Note 15 for more information regarding these asset impairment charges.

2    During the three months ended April 30, 2022, the Company recorded net gains on lease modifications related primarily to the early termination of certain lease agreements.

The 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
	Apr 29, 2023		Apr 30, 2022
Net revenue:
U.S.	$	133,952	$	169,127
Italy	60,370		56,366
South Korea	47,589		35,884
Canada	32,574		40,578
Germany	32,364		35,841
Spain	29,236		30,113
Other countries	209,825		199,164
Total product sales	545,910		567,073
Net royalties	23,888		26,400
Net revenue	$	569,798	$	593,473

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.