v3.26.1
SEGMENT INFORMATION
 3 Months Ended
Apr. 04, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company reports segment information based upon a “management approach.” The management approach refers to the internal reporting that is used by management for making operating decisions and assessing the performance of the Company’s reportable segments.
The Company has 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, eCommerce websites, and mobile app. 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. The Company does not evaluate performance or allocate resources based on segment asset data, and therefore total segment 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 April 4, 2026
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$
332,248 
$
251,406 
$
97,459 
$
681,113 
Cost of goods sold
144,533 
191,734 
50,973 
387,240 
Selling expenses(1)
126,155 
2,408 
28,148 
156,711 
Distribution expenses(2)
20,302 
14,404 
6,188 
40,894 
Other segment items(3)
32,222 
6,076 
7,991 
46,288 
Segment operating income
$
9,037 
$
36,784 
$
4,159 
$
49,980 
(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 29, 2025
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$
294,432 
$
250,096 
$
85,299 
$
629,827 
Cost of goods sold
120,649 
170,608 
47,480 
338,737 
Selling expenses
121,522 
2,389 
24,254 
148,165 
Distribution expenses
19,250 
15,227 
6,116 
40,593 
Other segment items
30,703 
6,563 
7,664 
44,930 
Segment operating income (loss)
$
2,308 
$
55,309 
$
(215)
$
57,402 
The table below presents a reconciliation of reportable segment operating income to Income before income taxes:
Fiscal quarter ended
April 4, 2026
March 29, 2025
Total segment operating income
$
49,980 
$
57,402 
Items not included in segment operating income:
Unallocated corporate expenses(1)
(21,537)
(22,012)
Leadership transition costs(2)
— 
(6,126)
Operating model improvement costs(3)
— 
(3,162)
Consolidated operating income
28,443 
26,102 
Interest expense
11,757 
7,819 
Interest income
(3,256)
(3,142)
Other expense, net
86 
76 
Income before income taxes
$
19,856 
$
21,349 
(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 the Company’s former CEO, including accelerated vesting of outstanding time-based restricted stock awards pursuant to a retirement agreement approved by the Board, 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
April 4, 2026
March 29, 2025
U.S. Wholesale
$
1,967 
$
2,177 
U.S. Retail
8,444 
8,300 
International
2,734 
2,322 
Unallocated corporate
480 
455 
Total
13,625 
13,254