Annual report pursuant to Section 13 and 15(d)

Segment and Geographic Information

v3.22.4
Segment and Geographic Information
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment and Geographic Information

(13)

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

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

 

2020

 

Wholesale sales

 

$

4,632,429

 

 

$

3,758,640

 

 

$

2,835,010

 

Gross profit

 

 

1,669,276

 

 

 

1,437,517

 

 

 

1,112,558

 

Gross margin

 

 

36.0

%

 

 

38.2

%

 

 

39.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct-to-Consumer sales

 

$

2,812,121

 

 

$

2,551,547

 

 

$

1,778,420

 

Gross profit

 

 

1,846,081

 

 

 

1,686,854

 

 

 

1,093,240

 

Gross margin

 

 

65.6

%

 

 

66.1

%

 

 

61.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

7,444,550

 

 

$

6,310,187

 

 

$

4,613,430

 

Gross profit

 

 

3,515,357

 

 

 

3,124,371

 

 

 

2,205,798

 

Gross margin

 

 

47.2

%

 

 

49.5

%

 

 

47.8

%

 

 

 

As of December 31,

 

(in thousands)

 

 

2022

 

 

 

2021

 

Identifiable assets

 

 

 

 

 

 

 

 

Wholesale

 

$

3,682,860

 

 

$

3,816,513

 

Direct-to-Consumer

 

 

3,210,627

 

 

 

2,674,767

 

Total

 

$

6,893,487

 

 

$

6,491,280

 

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

 

2020

 

Additions to property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 

Wholesale

 

$

255,311

 

 

$

245,008

 

 

$

228,448

 

Direct-to-Consumer

 

 

103,681

 

 

 

64,666

 

 

 

81,468

 

Total

 

$

358,992

 

 

$

309,674

 

 

$

309,916

 

Geographic Information

 

 

Year Ended December 31,

 

(in thousands)

 

2022

 

 

2021

 

 

2020

 

Geographic sales

 

 

 

 

 

 

 

 

 

 

 

 

Domestic Wholesale

 

$

1,831,642

 

 

$

1,448,339

 

 

$

1,132,425

 

Domestic Direct-to-Consumer

 

 

1,243,511

 

 

 

1,115,018

 

 

 

786,844

 

Total domestic sales

 

 

3,075,153

 

 

 

2,563,357

 

 

 

1,919,269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International Wholesale

 

 

2,800,787

 

 

 

2,310,302

 

 

 

1,702,585

 

International Direct-to-Consumer

 

 

1,568,610

 

 

 

1,436,528

 

 

 

991,576

 

Total international sales

 

 

4,369,397

 

 

 

3,746,830

 

 

 

2,694,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

$

7,444,550

 

 

$

6,310,187

 

 

$

4,613,430

 

 

Regional Sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas (AMER)

 

$

3,854,392

 

 

$

3,152,304

 

 

$

2,292,540

 

Europe, Middle East & Africa (EMEA)

 

 

1,699,215

 

 

 

1,282,902

 

 

 

899,590

 

Asia Pacific (APAC)

 

 

1,890,943

 

 

 

1,874,981

 

 

 

1,421,300

 

Total sales

 

$

7,444,550

 

 

$

6,310,187

 

 

$

4,613,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China sales

 

$

1,062,724

 

 

$

1,247,949

 

 

$

924,482

 

 

 

 

As of December 31,

 

(in thousands)

 

 

2022

 

 

 

2021

 

Property, plant and equipment, net

 

 

 

 

 

 

 

 

Domestic

 

$

870,924

 

 

$

708,763

 

International

 

 

474,446

 

 

 

420,146

 

Total

 

$

1,345,370

 

 

$

1,128,909

 

 

 

 

 

 

 

 

 

 

China property plant and equipment, net

 

$

264,422

 

 

$

255,421

 

The Company’s sales to its five largest customers accounted for approximately 9.6%, 8.6%, and 8.8% of total sales for the years ended December 31, 2022, 2021 and 2020.

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 $4.4 billion and $4.2 billion at December 31, 2022 and December 31, 2021.

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 year ended December 31, 2022, 2021, and 2020 were $5.3 million, $3.3 million, and $18.7 million.

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

 

 

 

As of December 31,

 

(in thousands)

 

 

2022

 

 

 

2021

 

Domestic Accounts Receivable

 

$

310,138

 

 

$

270,404

 

International Accounts Receivable

 

 

597,621

 

 

 

525,073

 

 

 

The Company’s top five manufacturers produced the following:

 

 

 

Year Ended December 31,

 

(percentage of total production)

 

2022

 

 

 

2021

 

 

 

2020

 

Manufacturer #1

 

 

16.5

 

 

 

18.0

 

 

 

21.0

 

Manufacturer #2

 

 

7.0

 

 

 

5.3

 

 

 

6.2

 

Manufacturer #3

 

 

5.2

 

 

 

4.8

 

 

 

5.8

 

Manufacturer #4

 

 

5.2

 

 

 

4.6

 

 

 

4.9

 

Manufacturer #5

 

 

5.1

 

 

 

4.4

 

 

 

4.2

 

Total

 

 

39.0

 

 

 

37.1

 

 

 

42.1