v3.25.2
Note 11 - Segment Information
 6 Months Ended
Aug. 02, 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 locations. 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.

 

The 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 August 2, 2025

                

Total Revenue

 $114,635  $8,629  $983  $124,247 

Cost of Goods Sold

  48,552   3,419   765   52,736 

Gross Profit

  66,083   5,210   218   71,511 

Selling, General & Administrative

  34,183   97   -   34,280 

Contribution Margin

  31,900   5,113   218   37,231 

Overhead Expenses(1)

              22,119 

Interest Income

              (206)

Income before income taxes

             $15,318 

Thirteen weeks ended August 3, 2024

                

Total Revenue

 $103,455  $7,294  $1,049  $111,798 

Cost of Goods Sold

  47,607   3,008   614   51,229 

Gross Profit

  55,848   4,286   435   60,569 

Selling, General & Administrative

  31,717   257   -   31,974 

Contribution Margin

  24,131   4,029   435   28,595 

Overhead Expenses(1)

              17,238 

Interest Income

              (188)

Income before income taxes

             $11,545 
                 

Twenty-six weeks ended August 2, 2025

                

Total Revenue

 $234,224  $16,251  $2,167  $252,642 

Cost of Goods Sold

  100,123   6,433   1,588   108,144 

Gross Profit

  134,101   9,818   579   144,498 

Selling, General & Administrative

  68,535   193   -   68,728 

Contribution Margin

  65,566   9,625   579   75,770 

Overhead Expenses(1)

           41,227 

Interest Income

           (406)

Income before income taxes

          $34,949 

Twenty-six weeks ended August 3, 2024

                

Total Revenue

 $211,323  $13,278  $1,927  $226,528 

Cost of Goods Sold

  97,022   5,541   1,231   103,794 

Gross Profit

  114,301   7,737   696   122,734 

Selling, General & Administrative

  62,489   451   -   62,940 

Contribution Margin

  51,812   7,286   696   59,794 

Overhead Expenses(1)

           33,834 

Interest Income

           (614)

Income before income taxes

          $26,574 
                 

 

 (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 August 2, 2025

                    

Depreciation and amortization

  2,691   35   -   942   3,668 

Capital Expenditures

  2,381   -   -   984   3,365 

Thirteen weeks ended August 3, 2024

                    

Depreciation and amortization

  2,584   54   -   998   3,636 

Capital Expenditures

  2,187   -   -   1,083   3,270 
                     

Twenty-six weeks ended August 2, 2025

                    

Total Assets

 $219,168  $11,466  $1,648  $85,956  $318,238 

Depreciation and amortization

  5,425   74   -   1,869   7,368 

Capital Expenditures

  4,021   -   -   2,307   6,328 

Twenty-six weeks ended August 3, 2024

                    

Total Assets

 $198,235  $10,345  $1,067  $69,812  $279,459 

Depreciation and amortization

  5,207   106   -   1,981   7,294 

Capital Expenditures

  4,090   -   -   1,610   5,700 

 

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 August 2, 2025

                

Net sales to external customers

 $107,066  $15,775  $1,406  $124,247 

Thirteen weeks ended August 3, 2024

                

Net sales to external customers

 $96,766  $14,012  $1,020  $111,798 
                 

Twenty-six weeks ended August 2, 2025

                

Net sales to external customers

 $218,339  $31,402  $2,901  $252,642 

Property and equipment, net

  54,121   4,683   0   58,804 

Twenty-six weeks ended August 3, 2024

                

Net sales to external customers

 $196,217  $28,461  $1,850  $226,528 

Property and equipment, net

  49,436   3,867   0   53,303 

 

For purposes of this table only:

(1)  North America includes corporately-managed locations and sales to wholesale customers 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 wholesale and franchise businesses outside of North America and Europe.