| SEGMENT REPORTING |
SEGMENT REPORTING Our two reportable segments are the Retail segment and the Brand Portfolio segment. Beginning with the 2025 Form 10-K, we aggregated our previously reported U.S. Retail operating segment and Canada Retail operating segment into a single reportable segment, the Retail segment, due to the similar nature of their operations and economic characteristics. Prior period segment information has been recast to conform to the current reporting segment presentation. We have determined that the Chief Operating Decision Maker ("CODM") is our Chief Executive Officer.
The following tables provide certain financial data by segment reconciled to the condensed consolidated financial statements (total assets by segment are not presented in the table below as the CODM does not evaluate, manage, or measure segment performance using total assets): | | | | | | | | | | | | | | | | | | | (in thousands) | Retail | | Brand Portfolio | | Total | | Three months ended May 2, 2026 | | | | | | | Net sales: | | | | | | | External customer sales | $ | 626,684 | | | $ | 69,666 | | | $ | 696,350 | | | Intersegment sales | — | | | 44,852 | | | 44,852 | | | Segment net sales | 626,684 | | | 114,518 | | | 741,202 | | | Elimination of intersegment net sales | | | | | (44,852) | | | Consolidated net sales | | | | | $ | 696,350 | | | Less segment expenses: | | | | | | | Cost of sales, exclusive of expenses shown below | (342,388) | | | (75,641) | | | | | Store selling expenses | (83,052) | | | — | | | | | Occupancy costs | (75,485) | | | (1,130) | | | | | Marketing | (36,380) | | | (4,150) | | | | | Distribution and fulfillment costs | (13,227) | | | (3,427) | | | | | Personnel overhead costs | (13,644) | | | (11,265) | | | | | Depreciation and amortization | (9,277) | | | (1,806) | | | | Other expense items(1) | (1,953) | | | (4,437) | | | | | Plus income from equity investments | — | | | 2,761 | | | | | Segment operating profit | $ | 51,278 | | | $ | 15,423 | | | 66,701 | | | Net elimination of intersegment activity | | | | | (7,855) | | Corporate shared services costs(2) | | | | | (39,976) | | | | | | | | | Consolidated operating profit | | | | | 18,870 | | | Interest expense, net | | | | | (10,125) | | | Non-operating expenses, net | | | | | (5) | | | Income before income taxes and loss from equity investment | | | | | $ | 8,740 | | | Cash paid for segment property and equipment | $ | 8,497 | | | $ | 536 | | | $ | 9,033 | |
| | | | | | | | | | | | | | | | | | | (in thousands) | Retail | | Brand Portfolio | | Total | | Three months ended May 3, 2025 | | | | | | | Net sales: | | | | | | | External customer sales | $ | 627,145 | | | $ | 59,764 | | | $ | 686,909 | | | Intersegment sales | — | | | 36,134 | | | 36,134 | | | Segment net sales | 627,145 | | | 95,898 | | | 723,043 | | | Elimination of intersegment net sales | | | | | (36,134) | | | Consolidated net sales | | | | | $ | 686,909 | | | Less segment expenses: | | | | | | | Cost of sales, exclusive of expenses shown below | (358,945) | | | (69,872) | | | | | Store selling expenses | (83,504) | | | — | | | | | Occupancy costs | (73,712) | | | (1,196) | | | | | Marketing | (34,746) | | | (3,798) | | | | | Distribution and fulfillment costs | (12,301) | | | (2,979) | | | | | Personnel overhead costs | (13,362) | | | (12,367) | | | | | Depreciation and amortization | (9,020) | | | (1,760) | | | | Other expense items(1) | (1,582) | | | (4,407) | | | | | Plus income from equity investments | — | | | 2,427 | | | | | Segment operating profit | $ | 39,973 | | | $ | 1,946 | | | 41,919 | | | Net recognition of intersegment activity | | | | | 255 | | Corporate shared services costs(2) | | | | | (47,128) | | Impairment charges(2) | | | | | (2,953) | | | Consolidated operating loss | | | | | (7,907) | | | Interest expense, net | | | | | (11,971) | | | Non-operating income, net | | | | | 8 | | | Loss before income taxes | | | | | $ | (19,870) | | | Cash paid for segment property and equipment | $ | 5,875 | | | $ | 644 | | | $ | 6,519 | |
(1) Other expense items include professional services fees, payment service fees, supplies, travel, and other administrative segment expenses. (2) Corporate shared services costs and impairment charges are not attributed to any of our segments. Corporate shared services costs primarily relate to corporate administration, IT, finance, human resources, legal, real estate, and other shared services performing corporate-level activities. We also do not allocate amounts related to restructuring and integration charges (including severance).
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