Quarterly report pursuant to Section 13 or 15(d)

Note 11 - Segment Information

v3.10.0.1
Note 11 - Segment Information
 3 Months Ended
Sep. 30, 2018
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
(
11
)
Segment Information
 
Our wholesale and retail operating segments represent strategic business areas of our vertically integrated enterprise that operate separately and provide their own distinctive services. This vertical structure enables us to offer our complete line of home furnishings and accents more effectively while controlling quality and cost. We evaluate performance of the respective segments based upon revenues and operating income. Inter-segment transactions result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin.
 
As of
September 30, 2018,
the Company operated
147
design centers (our retail segment) and our independent retailers operated
153
design centers. Our wholesale segment net sales include sales to our retail segment, which are eliminated in consolidation, sales to our independent retailers and unaffiliated
third
parties. Our retail segment net sales accounted for
77%
of our consolidated net sales in the
three
months ended
September 30, 2018.
Our wholesale segment net sales accounted for
23%.
 
Segment information for the
three
months ended
September 30, 2018
and
2017
is provided below (in thousands):
 
   
Three months ended
  
   
September 30,
  
   
2018
    
2017
  
Net sales:
  
 
 
 
  
 
 
 
Wholesale segment
   $
118,072
     $
111,587
  
Retail segment
    
145,214
      
141,575
  
Elimination of inter-company sales
    
(75,501
 )    
(71,860
 )
Consolidated Total
   $
187,785
     $
181,302
  
                 
Operating income:
  
 
 
 
  
 
 
 
Wholesale segment
   $
14,315
     $
13,462
  
Retail segment
    
(1,559
 )    
(2,773
 )
Adjustment of inter-company profit (1)
    
(957
 )    
860
  
Consolidated Total
   $
11,799
     $
11,549
  
                 
Depreciation & Amortization:
  
 
 
 
  
 
 
 
Wholesale segment
   $
1,961
     $
1,987
  
Retail segment
    
3,039
      
3,099
  
Consolidated Total
   $
5,000
     $
5,086
  
                 
Capital expenditures:
  
 
 
 
  
 
 
 
Wholesale segment
   $
850
     $
751
  
Retail segment
    
1,927
      
1,902
  
Consolidated Total
   $
2,777
     $
2,653
  
 
 
   
September 30,
    
June 30,
  
   
2018
    
2018
  
Total Assets:
  
 
 
 
  
 
 
 
Wholesale segment
   $
259,199
     $
241,616
  
Retail segment
    
321,106
      
317,590
  
Inventory profit elimination (2)
    
(29,351
 )    
(28,773
 )
Consolidated Total
   $
550,954
     $
530,433
  
 
 
 
(
1
)
Represents the change in wholesale profit contained in the retail segment inventory at the end of the period.
 
(
2
)
Represents the wholesale profit contained in the retail segment inventory that has
not
yet been realized. These profits are realized when the related inventory is sold.