v3.25.1
SEGMENT INFORMATION
 3 Months Ended
Mar. 29, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has identified three operating and reportable segments: U.S. Retail, U.S. Wholesale, and International. The U.S. Retail segment consists of revenue primarily from sales of products in the United States through our retail stores and eCommerce websites. Similarly, the U.S. Wholesale segment consists of revenue primarily from sales in the United States of products to our wholesale partners. The International segment consists of revenue primarily from sales of products outside the United States, largely through our retail stores and eCommerce websites in Canada and Mexico, and sales to our international wholesale customers and licensees. The Company sells similar products in each of its three segments.
The Company’s chief operating decision maker is the Chief Executive Officer. The chief operating decision maker evaluates the operating performance of the segments based upon each segment’s net sales and segment operating income. Segment operating income includes net sales, royalty income, and related cost of goods sold and selling, general, and administrative expenses attributable to each segment. Segment operating income excludes unallocated corporate expenses as well as specific charges that are not directly attributable to segment operations, including restructuring costs, operating model improvement costs, leadership transition costs, and impairment charges related to goodwill and indefinite-lived intangible assets.
In fiscal 2024, the Company changed its measure of segment profitability to segment operating income, which excludes the charges mentioned above, and which were included in our previous measure of segment profitability, to better align with management’s assessment of segment performance and to provide better insights into segment performance. Prior period segment operating income for the first fiscal quarter ended March 30, 2024 has been recast to conform to the current presentation. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segments assets are not presented.
Certain costs, including incentive compensation for certain employees, and various other general corporate costs that are not specifically allocable to segments, are included in unallocated corporate expenses below.
Segment Performance
The tables below present certain segment information for our reportable segments for the periods indicated:
Fiscal quarter ended March 29, 2025
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Net sales$294,432 $250,096 $85,299 $629,827 
Cost of goods sold120,649 170,608 47,480 338,737 
Selling expenses(1)
121,522 2,389 24,254 148,165 
Distribution expenses(2)
19,250 15,227 6,116 40,593 
Other segment items(3)
30,703 6,563 7,664 44,930 
Segment operating income (loss)$2,308 $55,309 $(215)$57,402 
(1)Selling expenses include the costs of operating our retail stores and eCommerce channels, as well as wholesale sales management costs.
(2)Distribution expenses include payments to third-party shippers and handling costs to process product through our distribution facilities, including eCommerce fulfillment costs, and delivery to our wholesale customers and to our retail stores.
(3)Other segment items include royalty income and overhead costs that are attributable to our reportable segments and include allocated accounting, finance, human resources, and information technology expenses, occupancy costs, and other benefit and compensation programs, including performance-based compensation.
Fiscal quarter ended March 30, 2024
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Net sales$307,642 $264,131 $89,719 $661,492 
Cost of goods sold123,523 176,938 45,841 346,302 
Selling expenses115,020 3,011 26,607 144,638 
Distribution expenses20,044 14,878 5,543 40,465 
Other segment items34,761 5,976 9,542 50,279 
Segment operating income$14,294 $63,328 $2,186 $79,808 
The table below presents a reconciliation of reportable segment operating income to Income before income taxes:
Fiscal quarter ended
March 29, 2025March 30, 2024
Total segment operating income$57,402 $79,808 
Items not included in segment operating income:
Unallocated corporate expenses(1)
(22,012)(24,773)
Leadership transition costs(2)
(6,126)— 
Operating model improvement costs(3)
(3,162)— 
Consolidated operating income26,102 55,035 
Interest expense7,819 7,905 
Interest income(3,142)(3,089)
Other expense (income), net76 274 
Income before income taxes$21,349 $49,945 
(1)Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our reportable segments and include unallocated accounting, finance, legal, human resources, and information technology expenses, occupancy costs for our corporate headquarters, and other benefit and compensation programs, including performance-based compensation.
(2)Related to costs associated with the transition of our former CEO, including accelerated vesting of outstanding time-based restricted stock awards pursuant to a retirement agreement approved by the Board of Directors, executive recruiting costs, and other related costs.
(3)Primarily related to third-party consulting costs to support operating model improvement costs.
Additional Data by Segment
The tables below present additional information for our reportable segments for the periods presented:
Depreciation and amortization expense
Fiscal quarter ended
March 29, 2025March 30, 2024
U.S. Wholesale$2,177 $2,324 
U.S. Retail8,300 8,944 
International2,322 2,995 
Unallocated corporate455 571 
Total13,254 14,834