v3.25.1
Segment Information
 3 Months Ended
May 03, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company’s businesses are grouped into five reportable segments: Europe, Americas Retail, Americas Wholesale, Asia and Licensing. The Company’s Europe, Americas Retail, Americas Wholesale 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. On April 2, 2024, the Company completed the rag & bone acquisition and integrated rag & bone into its existing segments for financial reporting purposes.
The Company’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM evaluates segment performance based primarily on net revenues and earnings (loss) from operations before corporate performance-based compensation costs, asset impairment charges, net gains (losses) on lease modifications, separation charges, transaction costs, restructuring charges, gain on sale of assets and certain non-recurring credits (charges), if any. All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance. Corporate overhead, asset impairment charges, net gains from lease modifications, interest income, interest expense and other income (expense) are evaluated on a consolidated basis and not allocated to the Company’s business segments. The CODM does not evaluate performance or allocate resources based on segment asset data, and therefore total segment assets are not presented. The CODM does not review any information regarding total assets on a reportable segment basis.
Segment information is summarized as follows (in thousands):
Three Months Ended May 3, 2025
EuropeAmericas RetailAmericas WholesaleAsiaLicensingTotal
Product sales1
$306,072 $157,198 $101,431 $58,105 $— $622,806 
Net royalties— — — — 24,995 24,995 
Net revenue306,072 157,198 101,431 58,105 24,995 647,801 
Less2:
Cost of sales3
126,574 58,749 62,560 26,205 — 274,088 
Store occupancy expense46,179 39,629 7 12,029 — 97,844 
Advertising expense4
11,054 5,335 1,011 1,325 1,468 20,193 
Selling and merchandise expense33,796 9,557 4,916 5,278 — 53,547 
Store selling expense40,621 38,534 84 6,353 — 85,592 
General and administrative expense29,303 12,509 8,683 4,681 134 55,310 
Distribution expense14,272 1,369 2,923 1,295 — 19,859 
Other segment items5
13,162 8,024 1,096 2,732 374 25,388 
Total segment earnings (loss) from operations(8,889)(16,508)20,151 (1,793)23,019 15,980 
Reconciliation of segment earnings (loss) from operations to loss before income tax benefit:
Asset impairment charges(6,089)
Net gains on lease modifications236 
Interest expense(7,838)
Interest income2,027 
Other income, net1,364 
Unallocated corporate overhead expense4
(43,435)
Loss before income tax benefit$(37,755)
Three Months Ended May 4, 2024
EuropeAmericas RetailAmericas WholesaleAsiaLicensingTotal
Product sales1
$283,873 $144,196 $62,128 $72,756 $— $562,953 
Net royalties— — — — 28,990 28,990 
Net revenue283,873 144,196 62,128 72,756 28,990 591,943 
Less2:
Cost of sales3
115,881 53,932 35,944 30,282 — 236,039 
Store occupancy expense42,442 35,357 — 12,999 — 90,798 
Advertising expense4
7,734 2,780 586 1,703 2,127 14,930 
Selling and merchandise expense31,316 7,452 3,107 8,268 — 50,143 
Store selling expense36,310 33,831 — 7,386 — 77,527 
General and administrative expense24,200 11,611 5,359 4,233 — 45,403 
Distribution expense14,098 1,536 2,074 1,349 — 19,057 
Other segment items5
12,331 8,088 931 2,795 185 24,330 
Total segment earnings (loss) from operations(439)(10,391)14,127 3,741 26,678 33,716 
Reconciliation of segment earnings (loss) from operations to earnings before income tax benefit:
Asset impairment charges(1,141)
Interest expense(6,374)
Interest income3,648 
Loss on extinguishment of debt(1,952)
Other income, net35,767 
Unallocated corporate overhead expense4
(52,463)
Earnings before income tax benefit$11,201 
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Notes:
1All intercompany revenues are eliminated in consolidation and are not reviewed when evaluating segment performance.
2The significant expense categories and amounts align with the segment-level information that is regularly provided to the Company’s CODM. All intercompany expenses are eliminated in consolidation and are not reviewed when evaluating segment performance.
3Cost of sales represents the cost of product sales excluding store occupancy expense, buying department expense, and retail occupancy distribution expense.
4During the three months ended May 3, 2025, the Company incurred a total of $25.3 million in advertising expenses, with $20.2 million allocated within the Company’s segments and $5.1 million included in unallocated corporate overhead expense. During the three months ended May 4, 2024, the Company incurred a total of $19.9 million in advertising expenses, with $14.9 million allocated within the Company’s segments and $5.0 million included in unallocated corporate overhead expense.
5Other segment items for each reportable segment include buying department expense, retail occupancy distribution expense, design expense, gain (loss) on equity method investment and stock compensation.
Depreciation and amortization by segment are summarized as follows (in thousands):
Three Months Ended
May 3, 2025May 4, 2024
Europe$8,978 $8,662 
Americas Retail5,325 3,820 
Americas Wholesale653 988 
Asia1,102 1,080 
Corporate overhead1,768 1,829 
Total depreciation and amortization$17,826 $16,379 
Capital expenditures by segment are summarized as follows (in thousands):
Three Months Ended
May 3, 2025May 4, 2024
Europe$10,242 $6,482 
Americas Retail3,102 8,788 
Americas Wholesale6,166 3,739 
Asia541 1,257 
Corporate overhead1,856 834 
Total capital expenditures$21,907 $21,100 
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
 May 3, 2025May 4, 2024
Net Product Sales:  
U.S.$193,183 $142,852 
Italy53,788 57,542 
Germany38,196 33,228 
South Korea35,718 48,868 
Spain32,267 30,232 
Canada26,047 29,303 
Other countries243,607 220,928 
Total product sales622,806 562,953 
Net royalties24,995 28,990 
Net revenue$647,801 $591,943 
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.