v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company reports segment information based on the “management approach.” The management approach designates the internal reporting used by management, specifically its chief operating decision maker ("CODM") for making decisions and assessing performance as the source of the Company's reportable segments. The Company's CODM is its Chief Executive Officer.
The Company manages its business primarily on a geographic basis. The Company’s reportable operating segments are comprised of (i) Americas, (ii) Europe and (iii) Asia. Each reportable operating segment includes sales to wholesale and distributor customers, and sales through Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment primarily includes sales to customers based in Canada, Latin America and the United States. The Europe segment primarily includes sales to customers based in European countries, the Middle East and Africa. The Asia segment primarily includes sales to customers based in Australia, greater China (including mainland China, Hong Kong, Macau and Taiwan), India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. Each reportable operating segment provides similar products and services.
The Company evaluates the performance of its reportable segments based on net sales and operating income (loss). Net sales for geographic segments are based on the location of the selling entity. Operating income (loss) for each segment includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segment. Corporate includes peripheral revenue generating activities from factories and intellectual property and general corporate expenses, including certain administrative, legal, accounting, technology support costs, equity compensation costs, payroll costs attributable to executive management, brand management, product development, art, creative/product design, marketing, strategy, compliance and back office supply chain expenses that are not allocated to the various segments because they are managed at the corporate level internally. The Company does not include intercompany transfers between segments for management reporting purposes.
The CODM uses net sales and operating income (loss) for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for both performance measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment gross profit for evaluating pricing strategy and segment operating income (loss) to assess the performance of each segment by comparing the results of each segment with one another. The CODM does not review disaggregated assets by segment, therefore it is not presented below.
Summary information by operating segment was as follows (in thousands):
For the 13 Weeks Ended July 4, 2026
AmericasEuropeAsiaCorporateTotal
Net sales$96,706 $55,804 $56,836 $342 $209,688 
Cost of sales35,247 19,931 19,644 4,072 78,894 
   Gross profit$61,459 $35,873 $37,192 $(3,730)$130,794 
Marketing5,812 3,915 3,923 1,394 15,044 
Compensation and benefits14,813 16,537 6,848 24,577 62,775 
Depreciation and amortization478 508 349 919 2,254 
Other segment items (1)
13,013 7,432 6,433 20,643 47,521 
   Operating income (loss)$27,343 $7,481 $19,639 $(51,263)$3,200 
For the 13 Weeks Ended July 5, 2025
AmericasEuropeAsiaCorporateTotal
Net sales$95,751 $67,169 $57,415 $53 $220,388 
Cost of sales44,955 25,887 22,831 (14)93,659 
   Gross profit$50,796 $41,282 $34,584 $67 $126,729 
Marketing4,143 3,170 3,210 507 11,030 
Compensation and benefits14,507 18,833 8,394 26,603 68,337 
Depreciation and amortization689 671 386 1,148 2,894 
Other segment items (1)
12,525 (4,817)7,893 20,379 35,980 
   Operating income (loss)$18,932 $23,425 $14,701 $(48,570)$8,488 

For the 26 Weeks Ended July 4, 2026
AmericasEuropeAsiaCorporateTotal
Net sales$193,480 $127,311 $112,859 $799 $434,449 
Cost of sales73,672 46,284 42,446 6,549 168,951 
   Gross profit$119,808 $81,027 $70,413 $(5,750)$265,498 
Marketing10,288 8,590 7,576 2,994 29,448 
Compensation and benefits28,593 32,096 13,829 46,061 120,579 
Depreciation and amortization992 1,067 710 1,896 4,665 
Other segment items (1)
24,809 15,706 13,058 41,984 95,557 
   Operating income (loss)$55,126 $23,568 $35,240 $(98,685)$15,249 

For the 27 Weeks Ended July 5, 2025
AmericasEuropeAsiaCorporateTotal
Net sales$193,480 $144,502 $114,760 $939 $453,681 
Cost of sales85,975 55,089 42,739 157 183,960 
   Gross profit$107,505 $89,413 $72,021 $782 $269,721 
Marketing8,189 6,920 7,252 1,915 24,276 
Compensation and benefits30,059 36,708 17,118 58,144 142,029 
Depreciation and amortization1,419 1,488 1,001 2,355 6,263 
Other segment items (1)
24,676 4,118 16,690 49,927 95,411 
   Operating income (loss)$43,162 $40,179 $29,960 $(111,559)$1,742 
(1) Other segment items for each reportable segment include long-lived asset impairments, restructuring charges, facility costs, overhead expenses, fixed asset disposals and other operating costs.
The following table reflects net sales for each class of similar products in the periods presented (in thousands, except percentage data):
For the 13 Weeks Ended July 4, 2026For the 13 Weeks Ended July 5, 2025
Net SalesPercentage of TotalNet SalesPercentage of Total
Watches:
    Traditional watches $175,746 83.8 %$178,446 81.0 %
    Smartwatches1,388 0.7 1,400 0.6 
Total watches$177,134 84.5 %$179,846 81.6 %
Leathers11,679 5.6 16,947 7.7 
Jewelry17,220 8.2 19,390 8.8 
Other3,655 1.7 4,205 1.9 
Total$209,688 100.0 %$220,388 100.0 %

For the 26 Weeks Ended July 4, 2026For the 27 Weeks Ended July 5, 2025
Net SalesPercentage of TotalNet SalesPercentage of Total
Watches:
    Traditional watches$364,477 83.9 %$363,076 80.0 %
    Smartwatches3,118 0.7 5,446 1.2 
Total watches$367,595 84.6 %$368,522 81.2 %
Leathers22,320 5.1 34,127 7.5 
Jewelry37,361 8.6 41,652 9.2 
Other7,173 1.7 9,380 2.1 
Total$434,449 100.0 %$453,681 100.0 %