| Segment and Geographic Information |
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(9)
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Segment and Geographic Information
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The Company has two reportable segments, Wholesale and Direct-to-Consumer. Management evaluates 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
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Three Months Ended March 31,
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(in thousands)
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2023
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|
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2022
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|
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Wholesale sales
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$
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1,294,558
|
|
|
$
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1,251,306
|
|
|
Gross profit
|
|
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511,999
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|
|
|
454,960
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|
|
Gross margin
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39.6
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%
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|
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36.4
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%
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|
|
|
|
|
|
|
|
|
|
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Direct-to-Consumer sales
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$
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707,370
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$
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568,288
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Gross profit
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466,580
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369,203
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Gross margin
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66.0
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%
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|
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65.0
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%
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|
|
|
|
|
|
|
|
|
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Total sales
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$
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2,001,928
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|
|
$
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1,819,594
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|
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Gross profit
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978,579
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|
|
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824,163
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Gross margin
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48.9
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%
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45.3
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%
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(in thousands)
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|
As of
March 31, 2023
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|
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As of
December 31, 2022
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Identifiable assets
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Wholesale
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$
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3,759,816
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$
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3,682,860
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Direct-to-Consumer
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3,284,655
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3,210,627
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Total
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$
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7,044,471
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$
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6,893,487
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|
|
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Three Months Ended March 31,
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(in thousands)
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2023
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|
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2022
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Additions to property, plant and equipment
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|
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|
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Wholesale
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$
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51,516
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|
|
$
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64,698
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Direct-to-Consumer
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19,697
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|
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24,700
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Total
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$
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71,213
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|
$
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89,398
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Geographic Information
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Three Months Ended March 31,
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(in thousands)
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2023
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|
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2022
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Geographic sales
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|
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Domestic Wholesale
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$
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441,903
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$
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538,569
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Domestic Direct-to-Consumer
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298,963
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239,448
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Total domestic sales
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740,866
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778,017
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International Wholesale
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852,655
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|
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712,737
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International Direct-to-Consumer
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408,407
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328,840
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Total international sales
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1,261,062
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1,041,577
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|
|
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|
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Total sales
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$
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2,001,928
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|
|
$
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1,819,594
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Regional Sales
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Americas (AMER)
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$
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945,931
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$
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946,886
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Europe, Middle East & Africa (EMEA)
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534,494
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441,201
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Asia Pacific (APAC)
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521,503
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431,507
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Total sales
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|
$
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2,001,928
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|
|
$
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1,819,594
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|
|
|
|
|
|
|
|
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China sales
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$
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281,953
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$
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273,031
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(in thousands)
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As of
March 31, 2023
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As of
December 31, 2022
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Property, plant and equipment, net
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|
|
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Domestic
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$
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882,901
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$
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870,924
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International
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494,687
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474,446
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Total
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$
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1,377,588
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$
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1,345,370
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|
|
|
|
|
|
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China property plant and equipment, net
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$
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274,149
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$
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264,422
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The Company’s sales to its five largest customers accounted for approximately 8.0% and 10.0% of total sales for the three months ended March 31, 2023 and 2022.
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 $4.6 billion and $4.4 billion at March 31, 2023 and December 31, 2022. Goodwill of $93.5 million is included in the Wholesale segment.
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, 2023 and 2022 were $0.7 million and $0.3 million.
The Company’s accounts receivables, excluding allowances for bad debts and chargebacks, by geography are summarized as follows:
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(in thousands)
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|
As of
March 31, 2023
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As of
December 31, 2022
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Domestic Accounts Receivable
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$
|
394,760
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$
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310,138
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International Accounts Receivable
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719,911
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597,621
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The Company’s top five manufacturers produced the following:
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Three Months Ended March 31,
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(percentage of total production)
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2023
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2022
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Manufacturer #1
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23.2
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17.8
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Manufacturer #2
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6.1
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5.2
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Manufacturer #3
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5.8
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5.0
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Manufacturer #4
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5.8
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4.8
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Manufacturer #5
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5.3
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4.4
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Total
|
|
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46.2
|
|
|
|
37.2
|
|
|