v3.26.1
Segment and Geographic Information
 3 Months Ended
Apr. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information

NOTE 16 – SEGMENT AND GEOGRAPHIC INFORMATION

The Company follows accounting guidance related to disclosures about segments of an enterprise and related information. This guidance requires disclosure of segment data based on how management makes decisions about allocating resources to segments and measuring their performance.

The Company conducts its business in two operating segments: Watch and Accessory Brands and Company Stores. The Company’s Watch and Accessory Brands segment includes the designing, manufacturing and distribution of watches and, to a lesser extent, jewelry and other accessories, of owned and licensed brands, in addition to revenue generated from after-sales service activities and shipping. The Company Stores segment includes the Company’s retail outlet business. The Chief Executive Officer of the Company is the Company's chief operating decision maker ("CODM") and regularly reviews operating results for each of the two operating segments to assess performance and makes operating decisions about the allocation of the Company’s resources. The Company’s CODM evaluates operating results based on gross profit, defined as net sales less cost of sales, and operating income, defined as gross profit less selling, general and administrative expenses. The CODM uses gross profit and operating income in the budgeting and forecasting process. The CODM considers budget-to-current forecast and prior forecast-to-current forecast variances for gross profit and operating income for evaluating performance of the segments and making decisions about allocating capital and other resources to each segment.

The Company divides its business into two major geographic locations: United States operations and International, which includes the results of all non-U.S. Company operations. The allocation of geographic revenue is based upon the location of the customer. The following table summarizes the Company's net sales in the International locations by region as a percentage of the Company's total net sales for the three months ended April 30, 2026 and 2025.

 

 

Three Months Ended April 30,

 

 

 

2026

 

 

2025

 

Europe

 

 

34.7

%

 

 

33.6

%

Americas (excluding the United States)

 

 

11.9

%

 

 

10.9

%

Asia

 

 

7.5

%

 

 

6.3

%

Middle East

 

 

4.1

%

 

 

7.7

%

Total International Operations

 

 

58.2

%

 

 

58.5

%

 

 

 

 

 

 

 

Operating Segment Data as of and for the Three Months Ended April 30, 2026 and 2025 (in thousands):

 

 

 

Net Sales

 

 

 

2026

 

 

2025

 

Watch and Accessory Brands:

 

 

 

 

 

 

Owned brands category

 

$

35,610

 

 

$

33,132

 

Licensed brands category

 

 

85,497

 

 

 

80,243

 

After-sales service and all other

 

 

2,592

 

 

 

1,427

 

Total Watch and Accessory Brands

 

 

123,699

 

 

 

114,802

 

Company Stores

 

 

18,703

 

 

 

16,967

 

Consolidated total

 

$

142,402

 

 

$

131,769

 

 

 

 

 

 

Watch and Accessory Brands

 

Company Stores

 

Consolidated Total

 

 

Watch and Accessory Brands

 

Company Stores

 

Consolidated Total

 

 

 

2026

 

2026

 

2026

 

 

2025

 

2025

 

2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

123,699

 

$

18,703

 

$

142,402

 

 

$

114,802

 

$

16,967

 

$

131,769

 

Cost of sales

 

 

53,426

 

 

7,383

 

 

60,809

 

 

 

53,958

 

 

6,461

 

 

60,419

 

Gross profit

 

 

70,273

 

 

11,320

 

 

81,593

 

 

 

60,844

 

 

10,506

 

 

71,350

 

Selling, general and administrative

 

 

63,666

 

 

10,912

 

 

74,578

 

 

 

60,853

 

 

10,206

 

 

71,059

 

Operating income/(loss) (1) (2)

 

$

6,607

 

$

408

 

$

7,015

 

 

$

(9

)

$

300

 

$

291

 

Other income, net

 

 

 

 

 

 

1,961

 

 

 

 

 

 

 

1,760

 

Interest expense

 

 

 

 

 

 

(102

)

 

 

 

 

 

 

(111

)

Income before income taxes

 

 

 

 

 

$

8,874

 

 

 

 

 

 

$

1,940

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

$

1,784

 

$

528

 

$

2,312

 

 

$

1,735

 

$

545

 

$

2,280

 

 

 

(1)
The operating income/(loss) in the Watch and Accessory Brands Segment included $11.5 million and $8.0 million of unallocated corporate expenses for the three months ended April 30, 2026 and 2025, respectively, and $12.9 million and $14.0 million of certain intercompany profits related to the Company's supply chain operations for the three months ended April 30, 2026 and 2025, respectively.
(2)
The operating income in the Watch and Accessory Brands segment for the three months ended April 30, 2026, included a pre-tax charge of $0.5 million related to the investigation of misconduct within the Dubai branch of the Company's Swiss subsidiary. The operating (loss) in the Watch and Accessory Brands segment included a pre-tax charge of $0.6 million related to the Company's cost-savings initiative for the three months ended April 30, 2025.

 

 

 

 

Total Assets

 

 

Capital Expenditures

 

 

 

April 30,
 2026

 

 

January 31,
 2026

 

 

April 30,
 2025

 

 

April 30,
 2026

 

 

April 30,
 2025

 

Watch and Accessory Brands

 

$

679,008

 

 

$

690,068

 

 

$

685,095

 

 

$

1,081

 

 

$

1,103

 

Company Stores

 

 

55,002

 

 

 

52,553

 

 

 

62,083

 

 

 

73

 

 

 

430

 

Consolidated total

 

$

734,010

 

 

$

742,621

 

 

$

747,178

 

 

$

1,154

 

 

$

1,533

 

 

 

Geographic Location Data as of and for the Three Months Ended April 30, 2026 and 2025 (in thousands):

 

 

 

Net Sales

 

 

 

 

2026

 

 

2025

 

 

United States

 

$

59,456

 

 

$

54,700

 

 

International

 

 

82,946

 

 

 

77,069

 

 

Consolidated total

 

$

142,402

 

 

$

131,769

 

 

United States and International net sales are net of intercompany sales of $78.5 million and $74.0 million for the three months ended April 30, 2026 and 2025, respectively.

 

 

Long-Lived Assets consist of Operating Right-of-Use Assets and Property, Plant and Equipment, Net.

 

 

 

 

Long-Lived Assets

 

 

 

April 30,
 2026

 

 

January 31,
 2026

 

 

April 30,
 2025

 

United States

 

$

58,827

 

 

$

62,267

 

 

$

72,803

 

International

 

 

20,883

 

 

 

22,711

 

 

 

29,164

 

Consolidated total

 

$

79,710

 

 

$

84,978

 

 

$

101,967

 

 

 

 

Operating Right-of-Use Assets

 

 

 

April 30,
 2026

 

 

January 31,
 2026

 

 

April 30,
 2025

 

United States

 

$

47,661

 

 

$

50,705

 

 

$

59,645

 

International

 

 

15,644

 

 

 

17,168

 

 

 

22,373

 

Consolidated total

 

$

63,305

 

 

$

67,873

 

 

$

82,018

 

 

 

 

Property, Plant and Equipment, Net

 

 

 

April 30,
 2026

 

 

January 31,
 2026

 

 

April 30,
 2025

 

United States

 

$

11,166

 

 

$

11,562

 

 

$

13,158

 

International

 

 

5,239

 

 

 

5,543

 

 

 

6,791

 

Consolidated total

 

$

16,405

 

 

$

17,105

 

 

$

19,949