v3.26.3
SEGMENT INFORMATION (Tables)
 9 Months Ended
Oct. 03, 2026
Segment Reporting [Abstract]  
Schedule of segment information
The table below presents certain segment information for the Company’s reportable segments for the periods indicated:
Fiscal quarter ended October 3, 2026
(dollars in thousands)U.S. RetailU.S. WholesaleInternationalTotal
Net sales$362,624 $273,110 $116,722 $752,456 
Cost of goods sold(1)
145,330 193,546 58,814 397,690 
Selling expenses(2)
133,587 2,241 29,780 165,608 
Distribution expenses(3)
26,883 15,810 7,188 49,881 
Other segment items(4)
37,517 12,798 9,235 59,550 
Segment operating income$19,307 $48,715 $11,705 $79,727 
(1)IEEPA 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.
Three fiscal quarters ended October 3, 2026
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$999,549 $740,069 $309,442 $2,049,060 
Cost of goods sold
413,637 543,928 157,932 1,115,497 
Selling expenses
384,206 7,080 85,980 477,266 
Distribution expenses
64,206 44,726 18,773 127,705 
Other segment items
104,903 29,095 25,484 159,482 
Segment operating income
$32,597 $115,240 $21,273 $169,110 
Note: See footnotes above.
Fiscal quarter ended September 27, 2025
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$362,307 $283,805 $111,724 $757,836 
Cost of goods sold
152,721 205,441 58,046 416,208 
Selling expenses
130,217 2,245 27,930 160,392 
Distribution expenses
28,819 16,681 7,370 52,870 
Other segment items
40,574 15,440 9,206 65,220 
Segment operating income
$9,976 $43,998 $9,172 $63,146 
Note: See footnotes above.
Three fiscal quarters ended September 27, 2025
(dollars in thousands)
U.S. Retail
U.S. Wholesale
International
Total
Net sales
$956,288 $726,899 $289,788 $1,972,975 
Cost of goods sold
389,864 514,117 154,516 1,058,497 
Selling expenses
378,985 7,054 78,411 464,450 
Distribution expenses
66,279 47,092 18,508 131,879 
Other segment items
105,108 32,267 25,789 163,164 
Segment operating income
$16,052 $126,369 $12,564 $154,985 
Note: See footnotes above.
The table below presents a reconciliation of reportable segment operating income to Income before income taxes:
Fiscal quarter endedThree fiscal quarters ended
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
Total segment operating income$79,727 $63,146 $169,110 $154,985 
Items not included in segment operating income:
Tariff refund recovery(1)
— — 127,669 — 
Unallocated corporate expenses(2)
(22,794)(23,767)(65,635)(68,465)
Leadership transition costs(3)
— (500)(4,726)(7,694)
IP litigation costs(4)
(1,163)— (2,379)— 
Organizational restructuring(5)
— (6,117)— (6,117)
Operating model improvement costs(6)
— (3,669)— (13,469)
   Consolidated operating income$55,770 $29,093 $224,039 $59,240 
Interest expense11,826 7,173 34,895 22,849 
Interest income(4,797)(2,573)(16,536)(10,007)
Other expense (income), net329 882 766 (265)
Pension plan settlement(7)
— 8,777 — 8,777 
   Income before income taxes$48,412 $14,834 $204,914 $37,886 
(1)Related to $128 million of IEEPA tariff refund 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)Related to charges for severance and other termination benefits as a result of organizational restructuring.
(6)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.
(7)Related to non-cash charges as a result of pension plan settlements.
Additional information On Reportable Segments
The table below presents additional information for our reportable segments for the periods presented:
Depreciation and amortization expense
Fiscal quarter endedThree fiscal quarters ended
October 3, 2026September 27, 2025October 3, 2026September 27, 2025
U.S. Wholesale
$1,819 $2,182 $5,637 $6,541 
U.S. Retail
8,155 8,667 24,638 25,426 
International
2,719 2,472 8,126 7,266 
Unallocated corporate
182 445 1,122 1,345 
Total
$12,875 $13,766 $39,523 $40,578