v3.25.1
Note 11 - Segment Information
 3 Months Ended
May 03, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

11. Segment Information 

 

The Company’s operations are conducted through three operating segments consisting of DTC, commercial and international franchising. The DTC segment includes the operating activities of corporately-managed locations and other retail delivery operations in the U.S., Canada, the Republic of Ireland and the U.K., including the Company’s e-commerce sites and temporary stores. The commercial segment includes the Company’s transactions with other businesses, mainly comprised of licensing the Company’s intellectual properties for third-party use and wholesale sales to our partner-operated stores. The international franchising segment includes the licensing activities of the Company’s franchise agreements with store locations in select countries in Asia, Australia, the Middle East, Africa, and South America. The operating segments have discrete sources of revenue, different capital structures and different cost structures. These operating segments represent the basis on which the Company’s chief operating decision maker regularly evaluates the business in assessing performance, determining the allocation of resources and the pursuit of future growth opportunities. Accordingly, the Company has determined that each of its operating segments represent a reportable segment. The three reportable segments follow the same accounting policies used for the Company’s consolidated financial statements.

 

Following is a summary of the financial information for the Company’s reportable segments (in thousands):

 

  

Direct-to-

      

International

     
  

Consumer

  

Commercial

  

Franchising

  

Total

 

Thirteen weeks ended May 3, 2025

                

Total Revenue

 $119,589  $7,623  $1,183  $128,395 

Cost of Goods Sold

  51,571   3,014   824   55,409 

Gross Profit

  68,018   4,609   359   72,986 

Selling, General & Administrative

  34,352   96   -   34,448 

Contribution Margin

  33,666   4,513   359   38,538 

Overhead Expenses(1)

              19,107 

Interest Income

              (200)

Income before income taxes

             $19,631 

Thirteen weeks ended May 4, 2024

                

Total Revenue

 $107,868  $5,985  $877  $114,730 

Cost of Goods Sold

  49,415   2,533   617   52,565 

Gross Profit

  58,453   3,452   260   62,165 

Selling, General & Administrative

  30,771   195   -   30,966 

Contribution Margin

  27,682   3,257   260   31,199 

Overhead Expenses(1)

              16,596 

Interest Income

              (426)

Income before income taxes

             $15,029 

 

 (1)Overhead expenses contain selling, general and administrative expenses not attributable to a segment.

 

Total assets, depreciation and amortization, and capital expenditures for the Company's segments, as well as for Corporate and support, are as follows:

 

  

Direct-to-

      

International

         
  

Consumer

  

Commercial

  

Franchising

  

Corporate

  

Total

 

Thirteen weeks ended May 3, 2025

                    

Total Assets

 $209,280  $11,605  $1,831  $85,587  $308,303 

Depreciation and amortization

  2,734   39   -   927   3,700 

Capital Expenditures

  1,354   -   -   1,553   2,907 

Thirteen weeks ended May 4, 2024

                    

Total Assets

 $185,505  $8,948  $1,377  $69,446  $265,276 

Depreciation and amortization

  2,623   52   -   983   3,658 

Capital Expenditures

  1,903   -   -   527   2,430 

 

The Company’s reportable segments are primarily determined by the types of products and services that they offer. Each reportable segment may operate in many geographic areas. Revenues are recognized in the geographic areas based on the location of the customer or franchisee. The following schedule is a summary of the Company’s sales to external customers and long-lived assets by geographic area (in thousands):

 

  

North

             
  

America (1)

  

Europe (2)

  

Other (3)

  

Total

 

Thirteen weeks ended May 3, 2025

                

Net sales to external customers

 $111,273  $15,627  $1,495  $128,395 

Thirteen weeks ended May 4, 2024

                

Net sales to external customers

 $99,451  $14,449  $830  $114,730 

 

For purposes of this table only:

(1)  North America includes corporately-managed locations in the United States and Canada.

(2)  Europe includes corporately-managed locations in the U.K. and the Republic of Ireland and sales to wholesale customers in Europe.

(3)  Other includes franchise businesses outside of North America and Europe.