v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jul. 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 and the impact of tariff refund recoveries, as well as specific charges that are not directly attributable to segment operations, including operating model improvement costs, restructuring costs, leadership transition costs, specific intellectual property litigation 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 table below presents certain segment information for the Company’s reportable segments for the periods indicated:
Fiscal quarter ended July 4, 2026
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Net sales$304,677 $215,552 $95,261 $615,490 
Cost of goods sold(1)
123,769 158,647 48,143 330,559 
Selling expenses(2)
124,464 2,431 28,052 154,947 
Distribution expenses(3)
17,020 14,512 5,397 36,929 
Other segment items(4)
35,171 10,221 8,259 53,651 
Segment operating income$4,253 $29,741 $5,410 $39,404 
(1)Tariff refund recoveries are excluded from segment operating income.
(2)Selling expenses include the costs of operating our retail stores and eCommerce channels, as well as wholesale sales management costs.
(3)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.
(4)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.
Two fiscal quarters ended July 4, 2026
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$636,925 $466,959 $192,719 $1,296,603 
Cost of goods sold
268,302 350,382 99,116 717,800 
Selling expenses
250,618 4,839 56,200 311,657 
Distribution expenses
37,322 28,916 11,585 77,823 
Other segment items
67,393 16,296 16,249 99,938 
Segment operating income
$13,290 $66,526 $9,569 $89,385 
Note: See footnotes above.
Fiscal quarter ended June 28, 2025
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$299,549 $192,998 $92,766 $585,313 
Cost of goods sold
116,495 138,068 48,990 303,553 
Selling expenses
127,246 2,420 26,227 155,893 
Distribution expenses
18,210 15,184 5,022 38,416 
Other segment items
33,830 10,264 8,920 53,014 
Segment operating income
$3,768 $27,062 $3,607 $34,437 
Note: See footnotes above.
Two fiscal quarters ended June 28, 2025
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$593,980 $443,094 $178,065 $1,215,139 
Cost of goods sold
237,144 308,676 96,469 642,289 
Selling expenses
248,768 4,810 50,481 304,059 
Distribution expenses
37,460 30,411 11,138 79,009 
Other segment items
64,532 16,825 16,586 97,943 
Segment operating income
$6,076 $82,372 $3,391 $91,839 
Note: See footnotes above.
The table below presents a reconciliation of reportable segment operating income to Income before income taxes:
Fiscal quarter endedTwo fiscal quarters ended
July 4, 2026June 28, 2025July 4, 2026June 28, 2025
Total segment operating income$39,404 $34,437 $89,385 $91,839 
Items not included in segment operating income:
Tariff refund recovery(1)
127,669 — 127,669 — 
Unallocated corporate expenses(2)
(21,304)(22,687)(42,842)(44,699)
Leadership transition costs(3)
(4,726)(1,068)(4,726)(7,194)
IP litigation costs(4)
(1,217)— (1,217)— 
Operating model improvement costs(5)
— (6,638)— (9,800)
   Consolidated operating income$139,826 $4,044 $168,269 $30,146 
Interest expense11,312 7,857 23,069 15,676 
Interest income(8,483)(4,292)(11,739)(7,434)
Other expense (income), net352 (1,224)438 (1,148)
   Income before income taxes$136,645 $1,703 $156,501 $23,052 
(1)Related to $128 million of IEEPA tariff recoveries, excluding interest received, which are reflected as a reduction of Cost of goods sold in our condensed consolidated statement of operations.
(2)Unallocated corporate expenses include corporate overhead expenses that are not directly attributable to one of our business 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.
(3)Related to costs associated with the retirement of Michael D. Casey, the Company’s former Chief Executive Officer, in the first quarter of fiscal 2025 and costs related to the departure of Douglas C. Palladini, the Company’s former Chief Executive Officer, in the second quarter of fiscal 2026. Amounts are reflected within Selling, general, and administrative expenses in our condensed consolidated statement of operations.
(4)Reflects third-party legal defense costs incurred in connection with a specific intellectual property litigation matter not in the ordinary course of business described in Note 15, Commitments and Contingencies to the condensed consolidated financial statements. Amounts are reflected within Selling, general, and administrative expenses in our condensed consolidated statement of operations.
(5)Primarily related to third-party consulting costs to support operating model improvements. Amounts are reflected within Selling, general, and administrative expenses in our condensed consolidated statement of operations.
Additional Data by Segment
The table below presents additional information for our reportable segments for the periods presented:
Depreciation and amortization expense
Fiscal quarter endedTwo fiscal quarters ended
July 4, 2026June 28, 2025July 4, 2026June 28, 2025
U.S. Wholesale
$1,865 $2,182 $3,823 $4,359 
U.S. Retail
8,006 8,459 16,476 16,759 
International
2,689 2,472 5,406 4,794 
Unallocated corporate
463 446 943 901 
Total
$13,023 $13,559 $26,648 $26,813