Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS AND GEOGRAPHIC INFORMATION

v3.19.2
SEGMENTS AND GEOGRAPHIC INFORMATION
6 Months Ended
Aug. 03, 2019
SEGMENTS AND GEOGRAPHIC INFORMATION  
SEGMENTS AND GEOGRAPHIC INFORMATION

9. SEGMENTS AND GEOGRAPHIC INFORMATION

We consider Michaels-U.S., Michaels-Canada, Pat Catan’s and Darice to be our operating segments for purposes of determining reportable segments based on the criteria of ASC 280, Segment Reporting (“ASC 280”). We determined that Michaels-U.S., Michaels-Canada and Pat Catan’s have similar economic characteristics and meet the aggregation criteria set forth in ASC 280. Therefore, we combine these operating segments into one reporting segment. Darice does not meet the materiality criteria in ASC 280 and, therefore, is not disclosed separately as a reportable segment. Our chief operating decision makers evaluate historical operating performance and forecast future periods’ operating performance based on operating income.

Our net sales by country are as follows (in thousands):

13 Weeks Ended

26 Weeks Ended

August 3,

August 4,

August 3,

August 4,

2019

2018

2019

2018

United States(1)

$

939,036

$

956,608

$

1,933,136

$

2,004,609

Canada

 

94,653

 

96,659

 

194,272

 

204,169

Total

$

1,033,689

$

1,053,267

$

2,127,408

$

2,208,778

(1) In the first quarter of fiscal 2018 we closed substantially all of our Aaron Brothers stores and in the fourth quarter of fiscal 2018 we closed all of our Pat Catan’s stores. In the second quarter of fiscal 2018, Pat Catan’s sales totaled approximately $22.9 million. For the six months ended August 4, 2018, Pat Catan’s and Aaron Brothers sales totaled approximately $48.7 million and $12.9 million, respectively.