Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographic Information

v3.22.1
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information

(9)

Segment and Geographic Information

During the first quarter of 2022, the Company refined the way in which management assesses performance and allocates resources and now presents its reportable segment results as Wholesale and Direct-to-Consumer. Comparative periods have been recast to reflect these changes. Management continues to evaluate segment performance based primarily on sales and gross margin. Other costs and expenses of the Company are analyzed on an aggregate basis and not allocated to the segments. The following summarizes the Company’s operations by segment and geographic area:

Segment Information

 

 

 

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2022

 

 

2021

 

Wholesale sales

 

$

1,251,306

 

 

$

943,110

 

Gross profit

 

 

454,960

 

 

 

369,565

 

Gross margin

 

 

36.4

%

 

 

39.2

%

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

568,288

 

 

$

491,345

 

Gross profit

 

 

369,203

 

 

 

316,094

 

Gross margin

 

 

65.0

%

 

 

64.3

%

 

 

 

 

 

 

 

 

 

Total sales

 

$

1,819,594

 

 

$

1,434,455

 

Gross profit

 

 

824,163

 

 

 

685,659

 

Gross margin

 

 

45.3

%

 

 

47.8

%

 

 

(in thousands)

 

As of March 31,

2022

 

 

As of December 31,

2021

 

Identifiable assets

 

 

 

 

 

 

 

 

Wholesale

 

$

3,804,976

 

 

$

3,816,513

 

Direct-to-Consumer

 

 

2,740,134

 

 

 

2,674,767

 

Total

 

$

6,545,110

 

 

$

6,491,280

 

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2022

 

 

2021

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

Wholesale

 

$

64,698

 

 

$

74,134

 

Direct-to-Consumer

 

 

24,700

 

 

 

10,103

 

Total

 

$

89,398

 

 

$

84,237

 

Geographic Information

 

 

 

Three Months Ended March 31,

 

(in thousands)

 

2022

 

 

2021

 

Geographic sales

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

538,569

 

 

$

377,238

 

Domestic Direct-to-Consumer

 

 

239,448

 

 

 

227,452

 

Total domestic sales

 

 

778,017

 

 

 

604,690

 

 

 

 

 

 

 

 

 

 

International Wholesale

 

 

712,737

 

 

 

565,872

 

International Direct-to-Consumer

 

 

328,840

 

 

 

263,893

 

Total international sales

 

 

1,041,577

 

 

 

829,765

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

1,819,594

 

 

$

1,434,455

 

 

Regional Sales

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

946,886

 

 

$

725,618

 

Europe, Middle East & Africa (EMEA)

 

 

441,201

 

 

 

295,486

 

Asia Pacific (APAC)

 

 

431,507

 

 

 

413,351

 

Total

 

$

1,819,594

 

 

$

1,434,455

 

 

 

 

 

 

 

 

 

 

China sales

 

$

273,031

 

 

$

250,601

 

 

(in thousands)

 

As of March 31,

2022

 

 

As of December 31,

2021

 

Property, plant and equipment, net

 

 

 

 

 

 

 

 

Domestic

 

$

742,499

 

 

$

708,763

 

International

 

 

441,984

 

 

 

420,146

 

Total

 

$

1,184,483

 

 

$

1,128,909

 

 

 

 

 

 

 

 

 

 

China property plant and equipment, net

 

$

252,966

 

 

$

255,421

 

The Company’s sales to its five largest customers accounted for approximately 10.0% and 9.5% of total sales for the three months ended March 31, 2022 and 2021.

Assets located outside the U.S. consist primarily of cash, accounts receivable, inventory, property, plant and equipment, and other assets. Net assets held outside the U.S. were $4.1 billion and $4.2 billion at March 31, 2022 and December 31, 2021. Goodwill of $93.5 million is included in the Wholesale segment as of March 31, 2022.

The Company performs regular evaluations concerning the ability of customers to satisfy their obligations and provides for estimated doubtful accounts. Domestic accounts receivable generally do not require collateral. Foreign accounts receivable are generally collateralized by letters of credit. The Company’s additions to the provision for expected credit losses for the three months ended March 31, 2022 and 2021 were $0.3 million and $0.0 million.

The Company’s accounts receivables, excluding allowances for bad debts, allowances and chargebacks, by geography are summarized as follows:

 

(in thousands)

 

As of March 31,

2022

 

 

As of December 31,

2021

 

Domestic Accounts Receivable

 

$

450,865

 

 

$

270,404

 

International Accounts Receivable

 

 

613,602

 

 

 

525,073

 

 

 

The Company’s top five manufacturers produced the following:

 

 

 

Three Months Ended March 31,

 

(percentage of total production)

 

2022

 

 

2021

 

Manufacturer #1

 

 

17.8

 

 

 

18.6

 

Manufacturer #2

 

 

5.2

 

 

 

5.0

 

Manufacturer #3

 

 

5.0

 

 

 

4.8

 

Manufacturer #4

 

 

4.8

 

 

 

4.8

 

Manufacturer #5

 

 

4.4

 

 

 

4.3

 

 

 

 

37.2

 

 

 

37.5