Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2020 | Jun. 04, 2020 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-18183 | |
Entity Registrant Name | G III APPAREL GROUP LTD /DE/ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1590959 | |
Entity Address, Address Line One | 512 Seventh Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10018 | |
City Area Code | 212 | |
Local Phone Number | 403-0500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | GIII | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 48,052,834 | |
Entity Central Index Key | 0000821002 | |
Current Fiscal Year End Date | --01-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Current assets | |||
Cash and cash equivalents | $ 616,183 | $ 197,372 | $ 48,312 |
Accounts receivable, net of allowance for doubtful accounts of $10.4 million, $0.9 million and $0.7 million, respectively | 421,143 | 530,137 | 478,371 |
Inventories | 500,410 | 551,918 | 538,955 |
Prepaid income taxes | 9,724 | 8,566 | 9,369 |
Prepaid expenses and other current assets | 66,594 | 80,695 | 96,545 |
Total current assets | 1,614,054 | 1,368,688 | 1,171,552 |
Investments in unconsolidated affiliates | 58,299 | 61,987 | 63,361 |
Property and equipment, net | 72,918 | 76,023 | 89,848 |
Operating lease assets | 251,565 | 270,032 | 320,169 |
Other assets, net | 32,691 | 32,629 | 35,663 |
Other intangibles, net | 37,321 | 38,363 | 41,486 |
Deferred income tax assets, net | 34,548 | 18,135 | 25,212 |
Trademarks | 437,643 | 438,658 | 438,675 |
Goodwill | 259,922 | 260,622 | 260,578 |
Total assets | 2,798,961 | 2,565,137 | 2,446,544 |
Current liabilities | |||
Income tax payable | 9,115 | 8,468 | 3,588 |
Accounts payable | 114,750 | 204,786 | 172,806 |
Accrued expenses | 60,523 | 101,838 | 78,619 |
Customer refund liabilities | 157,886 | 233,418 | 210,310 |
Current operating lease liabilities | 63,632 | 63,166 | 74,761 |
Current portion of notes payable | 512 | 673 | |
Other current liabilities | 116 | 1,611 | 147 |
Total current liabilities | 406,534 | 613,960 | 540,231 |
Notes payable, net of discount and unamortized issuance costs | 900,682 | 396,794 | 411,087 |
Deferred income tax liabilities, net | 7,797 | 7,952 | 14,777 |
Noncurrent operating lease liabilities | 231,323 | 249,040 | 286,663 |
Other non-current liabilities | 6,391 | 6,719 | 6,960 |
Total liabilities | 1,552,727 | 1,274,465 | 1,259,718 |
Stockholders' Equity | |||
Preferred stock; 1,000 shares authorized; no shares issued | |||
Common stock - $0.01 par value; 120,000 shares authorized; 48,052, 49,393 and, 49,396 shares issued, respectively | 264 | 264 | 264 |
Additional paid-in capital | 449,840 | 452,142 | 456,835 |
Accumulated other comprehensive loss | (22,034) | (18,008) | (18,421) |
Retained earnings | 853,843 | 893,138 | 761,344 |
Common stock held in treasury, at cost - 1,344, 470 and 1,386 shares, respectively | (35,679) | (36,864) | (13,196) |
Total stockholders' equity | 1,246,234 | 1,290,672 | 1,186,826 |
Total liabilities and stockholders' equity | $ 2,798,961 | $ 2,565,137 | $ 2,446,544 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Statement Of Financial Position [Abstract] | |||
Allowance for doubtful accounts | $ 10.4 | $ 0.7 | $ 0.9 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000,000 | 120,000,000 | 120,000,000 |
Common stock, shares issued | 48,052,000 | 49,396,000 | 49,393,000 |
Treasury stock, shares | 1,344,000 | 1,386,000 | 470,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 405,131 | $ 633,552 |
Cost of goods sold | 280,730 | 397,488 |
Gross profit | 124,401 | 236,064 |
Selling, general and administrative expenses | 154,620 | 201,859 |
Depreciation and amortization | 9,867 | 9,473 |
Loss (gain) on lease terminations | 3,187 | (829) |
Operating profit (loss) | (43,273) | 25,561 |
Other loss | (2,056) | (648) |
Interest and financing charges, net | (10,379) | (10,320) |
Income (loss) before income taxes | (55,708) | 14,593 |
Income tax expense (benefit) | (16,413) | 2,550 |
Net income (loss) | $ (39,295) | $ 12,043 |
Basic: | ||
Basic net income (loss) per share (in dollars per share) | $ (0.82) | $ 0.25 |
Weighted average number of shares outstanding (in shares) | 48,025 | 48,781 |
Diluted: | ||
Net income (loss) per common share (in dollars per share) | $ (0.82) | $ 0.24 |
Weighted average number of shares outstanding (in shares) | 48,025 | 49,774 |
Net income (loss) | $ (39,295) | $ 12,043 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (4,026) | (3,227) |
Other comprehensive loss | (4,026) | (3,227) |
Comprehensive income (loss) | $ (43,321) | $ 8,816 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Common Stock Held in Treasury | Total |
Balance at beginning of period at Jan. 31, 2019 | $ 264 | $ 464,112 | $ (15,194) | $ 758,881 | $ (19,054) | $ 1,189,009 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity awards exercised/vested, net | (5,818) | 5,858 | 40 | |||
Share-based compensation expense | 4,227 | 4,227 | ||||
Taxes paid for net share settlements | (5,686) | (5,686) | ||||
Other comprehensive loss, net | (3,227) | (3,227) | ||||
Net income (loss) | 12,043 | 12,043 | ||||
Balance at end of period at Apr. 30, 2019 | 264 | 456,835 | (18,421) | 761,344 | (13,196) | 1,186,826 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of adoption of accounting standard | (9,580) | (9,580) | ||||
Balance at beginning of period at Jan. 31, 2020 | 264 | 452,142 | (18,008) | 893,138 | (36,864) | 1,290,672 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Equity awards exercised/vested, net | (1,185) | 1,185 | ||||
Share-based compensation expense | (811) | (811) | ||||
Taxes paid for net share settlements | (306) | (306) | ||||
Other comprehensive loss, net | (4,026) | (4,026) | ||||
Net income (loss) | (39,295) | (39,295) | ||||
Balance at end of period at Apr. 30, 2020 | $ 264 | $ 449,840 | $ (22,034) | $ 853,843 | $ (35,679) | $ 1,246,234 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ (39,295) | $ 12,043 |
Adjustments to reconcile net income to net cash provided by operating activities, net of assets and liabilities acquired: | ||
Depreciation and amortization | 9,867 | 9,473 |
Loss on disposal of fixed assets | 180 | 1,154 |
Non-cash operating lease costs | 17,443 | 20,284 |
Gain on lease terminations | 3,187 | (829) |
Dividend received from unconsolidated affiliate | 1,960 | 1,960 |
Equity (gain)/loss in unconsolidated affiliates | 580 | (358) |
Share-based compensation | (811) | 4,227 |
Deferred financing charges and debt discount amortization | 2,704 | 2,596 |
Deferred income taxes | (16,415) | 6 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 108,994 | 23,762 |
Inventories | 51,508 | 37,428 |
Income taxes, net | (422) | (6,302) |
Prepaid expenses and other current assets | 13,900 | 224 |
Other assets, net | (1,046) | (1,195) |
Customer refund liabilities | (75,532) | (33,279) |
Operating lease liabilities | (13,129) | (21,544) |
Accounts payable, accrued expenses and other liabilities | (136,769) | (74,979) |
Net cash used in operating activities | (73,096) | (25,329) |
Cash flows from investing activities | ||
Operating lease assets initial direct costs | (1,918) | |
Capital expenditures | (6,391) | (13,291) |
Net cash used in investing activities | (8,309) | (13,291) |
Cash flows from financing activities | ||
Repayment of borrowings - revolving credit facility | (355,477) | (482,496) |
Proceeds from borrowings - revolving credit facility | 855,477 | 505,005 |
Repayment of borrowings - unsecured term loan | (118) | |
Proceeds from borrowings - unsecured term loan | 1,832 | |
Proceeds from exercise of equity awards | 40 | |
Taxes paid for net share settlements | (306) | (5,686) |
Net cash provided by financing activities | 501,408 | 16,863 |
Foreign currency translation adjustments | (1,192) | (69) |
Net increase (decrease) in cash and cash equivalents | 418,811 | (21,826) |
Cash and cash equivalents at beginning of period | 197,372 | 70,138 |
Cash and cash equivalents at end of period | 616,183 | 48,312 |
Cash payments: | ||
Interest, net | 6,839 | 7,542 |
Income tax payments, net | $ 653 | $ 8,844 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation As used in these financial statements, the term “Company” or “G-III” refers to G-III Apparel Group, Ltd. and its subsidiaries. The Company designs, sources and markets an extensive range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company also operates retail stores and licenses its proprietary brands for several product categories. The Company consolidates the accounts of its wholly-owned and majority-owned subsidiaries. KL North America B.V. (“KLNA”) and Fabco Holding B.V. (“Fabco”) are Dutch joint venture limited liability companies that are 49% owned by the Company. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that is 19% owned by the Company. These investments are accounted for using the equity method of accounting. All material intercompany balances and transactions have been eliminated. Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, KLH, KLNA and Fabco report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. Accordingly, the results of Vilebrequin, KLH, KLNA and Fabco are, and will be, included in the financial statements for the quarter ended or ending closest to the Company’s fiscal quarter end. For example, with respect to the Company’s results for the three-month period ended April 30, 2020, the results of Vilebrequin, KLH, KLNA and Fabco are included for the three-month period ended March 31, 2020. The Company’s retail operations segment reports on a 52/53-week fiscal year. The Company’s three-month periods ended April 30, 2020 and 2019 were each 13-week fiscal quarters for the retail operations segment. For fiscal 2021 and 2020, the three-month period for the retail operations segment ended on May 2, 2020 and May 4, 2019, respectively. The results for the three months ended April 30, 2020 are not necessarily indicative of the results expected for the entire fiscal year, given the seasonal nature of the Company’s business and the significant effects of the COVID-19 pandemic on the Company’s business. The accompanying financial statements included herein are unaudited. All adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim period presented have been reflected. The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2020 filed with the Securities and Exchange Commission (the “SEC”). Assets and liabilities of the Company’s foreign operations, where the functional currency is not the U.S. dollar (reporting currency), are translated from foreign currency into U.S. dollars at period-end rates, while income and expenses are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive loss within stockholders’ equity. Accounting Policies On April 10, 2020, the Financial Accounting Standards Board (“FASB”) issued a Staff Q&A to respond to frequently asked questions about accounting for lease concessions related to the effects of the COVID-19 outbreak. Consequently, for lease concessions related to the effects of the COVID-19 outbreak, an entity will not have to analyze each lease to determine whether the enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance to those leases. Entities may make the elections for any lessor-provided concessions related to the effects of the outbreak (e.g., deferrals of lease payments, cash payments made to the lessee, or reduced future lease payments) as long as the concession does not result in a substantial increase in the rights of the lessor or the obligations of the lessee. The Company has elected to not apply the lease modification guidance for contracts with COVID-19 related rent concessions. As of April 30, 2020, the Company has $6.8 million of deferred lease payments recorded within accounts payable on its condensed consolidated balance sheets. Liquidity and Impact of COVID-19 The Company relies on its cash flows generated from operations and the borrowing capacity under its credit facilities to meet the cash requirements of its business. The primary cash requirements of its business are the seasonal buildup in inventory, compensation paid to employees, payments to suppliers in the normal course of business, capital expenditures, maturities of debt and related interest payments and income tax payments. The rapid expansion of the COVID-19 pandemic resulted in a sharp decline in net sales and earnings in the first quarter of fiscal 2021, which had a corresponding impact on the Company’s liquidity. The Company is focused on preserving its liquidity and managing its cash flow during these unprecedented conditions. The Company has taken preemptive actions to enhance its ability to meet its short-term liquidity needs, including, but not limited to, reducing payroll costs through employee furloughs and salary reductions, reduction of all discretionary spending, deferring certain lease payments, deferral of capital projects and drawing down on its revolving credit facility. In addition, the Company is closely monitoring its inventory needs and is working with its suppliers to curtail, or cancel, production of product that the Company believes will not be able to be sold in season. The Company has also been working with its suppliers and licensors to negotiate extended payment terms in order to preserve capital. In March 2020, in response to the uncertainty of the circumstances surrounding the COVID-19 outbreak, the Company borrowed an aggregate of $500 million under its revolving credit facility as a precautionary measure, to provide the Company with additional financial flexibility to manage its business during the unknown duration and impact of the COVID-19 pandemic. In May and June 2020, the Company repaid an aggregate of $500 million of its borrowings under the revolving credit facility as financial markets stabilized. As of April 30, 2020, the Company was in compliance with all covenants under its term loan and revolving credit facility. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 3 Months Ended |
Apr. 30, 2020 | |
Allowance for Doubtful Accounts | Note 2 – Allowance for Doubtful Accounts On February 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” which had no material impact on the Company’s financial statements. The Company’s financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. The Company considers its trade receivables to consist of two portfolio segments: wholesale and retail trade receivables. Wholesale trade receivables result from credit the Company has extended to its wholesale customers based on pre-defined criteria and are generally due within 30 to 60 days. As a result of the COVID-19 pandemic, certain of the Company’s wholesale customers have asked for extended payment terms. Retail trade receivables primarily relate to amounts due from third-party credit card processors for the settlement of debit and credit card transactions and are typically collected within 3 to 5 days. The Company’s accounts receivable and allowance for doubtful accounts as of April 30, 2020 were: April 30, 2020 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 428,762 $ 2,828 $ 431,590 Allowance for doubtful accounts (10,419) (28) (10,447) Accounts receivable, net $ 418,343 $ 2,800 $ 421,143 The allowance for doubtful accounts for wholesale trade receivables is estimated based on several factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligation (such as in the case of bankruptcy filings (including potential bankruptcy filings), extensive delay in payment or substantial downgrading by credit rating agencies), a specific reserve for bad debts is recorded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other wholesale customers, an allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the end of the reporting period for financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. The Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts. The allowance for doubtful accounts for retail trade receivables is estimated as the credit card chargeback rate applied to the previous 90 days of credit card sales. In addition, the Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts. During the three months ended April 30, 2020, the Company recorded a $9.7 million increase in its allowance for doubtful accounts primarily due to allowances recorded against the outstanding receivables of certain department store customers that have publicly announced bankruptcy filings or possible bankruptcy filings. The Company had the following activity in its allowance for credit losses for the three months ended April 30, 2020: April 30, 2020 Wholesale Retail Total (In thousands) Beginning balance $ (628) $ (82) $ (710) Provision for credit losses (9,791) 54 (9,737) Ending balance $ (10,419) $ (28) $ (10,447) |
Inventories
Inventories | 3 Months Ended |
Apr. 30, 2020 | |
Inventories [Abstract] | |
Inventories | Note 3 – Inventories Wholesale inventories, which comprise a significant portion of the Company’s inventory, are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Retail inventories are valued at the lower of cost or market as determined by the retail inventory method. Vilebrequin inventories are stated at the lower of cost (determined by the weighted average method) or net realizable value. Substantially all of the Company’s inventories consist of finished goods. The inventory return asset, which consists of the amount of goods that are anticipated to be returned by customers, represented $21.3 million, $35.5 million and $31.0 million as of April 30, 2020, April 30, 2019 and January 31, 2020 respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets. Inventory held on consignment by the Company’s customers totaled $6.6 million, $3.8 million and $9.1 million at April 30, 2020, April 30, 2019 and January 31, 2020, respectively. Consignment inventory is stored at the facilities of the Company’s customers. The Company reflects this inventory on its condensed consolidated balance sheets. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Apr. 30, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 4 – Fair Value of Financial Instruments Generally Accepted Accounting Principles establish a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: ● Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable. ● Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement. The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments: Carrying Value Fair Value April 30, April 30, January 31, April 30, April 30, January 31, Financial Instrument Level 2020 2019 2020 2020 2019 2020 (In thousands) Term loan 2 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Revolving credit facility 2 500,000 22,509 — 500,000 22,509 — Note issued to LVMH 3 103,438 97,938 102,009 109,910 90,065 95,126 Unsecured loans 2 4,504 — 2,860 4,504 — 2,860 The Company’s debt instruments are recorded at their carrying values in its condensed consolidated balance sheets, which may differ from their respective fair values. The carrying amount of the Company’s variable rate debt approximates the fair value, as interest rates change with the market rates. Furthermore, the carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash, accounts receivable and accounts payable) also approximates fair value due to the short-term nature of these accounts. The 2% note issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of Donna Karan International (“DKI”) was issued at a discount of $40.0 million in accordance with Accounting Standards Codification (“ASC”) 820 – Fair Value Measurements The fair value of the note issued to LVMH was considered a Level 3 valuation in the fair value hierarchy. Non-Financial Assets and Liabilities The Company’s non-financial assets that are measured at fair value on a nonrecurring basis include long-lived assets, which consist primarily of property and equipment and operating lease assets. The Company reviews these assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable. For impaired assets, an impairment loss is recognized equal to the difference between the carrying amount of the asset or asset group and its estimated fair value. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These fair value measurements are considered level 3 measurements in the fair value hierarchy. During the first quarter of fiscal 2020, the Company recorded an impairment of $9.6 million, net of tax, in connection with the adoption of ASC 842 – Leases |
Leases
Leases | 3 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 5 – Leases The Company leases retail stores, warehouses, distribution centers, office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases are for a term of one one Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company’s lease assets and liabilities as of April 30, 2020, April 30, 2019 and January 31, 2020 consist of the following: Leases Classification April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Assets Operating Operating lease assets $ 251,565 $ 320,169 $ 270,032 Total lease assets $ 251,565 $ 320,169 $ 270,032 Liabilities Current operating Current operating lease liabilities $ 63,632 $ 74,761 $ 63,166 Noncurrent operating Noncurrent operating lease liabilities 231,323 286,663 249,040 Total lease liabilities $ 294,955 $ 361,424 $ 312,206 The Company recorded lease costs of $22.4 million and $25.0 million during the three months ended April 30, 2020 and 2019, respectively. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income (loss). The Company recorded variable lease costs and short-term lease costs of $3.4 million and $3.3 million for the three months ended April 30, 2020 and 2019, respectively. Short-term lease costs are immaterial. As of April 30, 2020, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2025 and thereafter are as follows: Year Ending January 31, Amount (In thousands) 2021 $ 63,890 2022 76,088 2023 66,758 2024 52,732 2025 42,709 After 2025 58,068 Total lease payments $ 360,245 Less: Interest 65,290 Present value of lease liabilities $ 294,955 As of April 30, 2020, there are no material leases that are legally binding but have not yet commenced. As of April 30, 2020, the weighted average remaining lease term related to operating leases is 5.1 years. The weighted average discount rate related to operating leases is 7.9%. Cash paid for amounts included in the measurement of operating lease liabilities is $23.4 million and $26.4 million during the periods ended April 30, 2020 and 2019, respectively. Right-of-use assets obtained in exchange for lease obligations were $4.6 million and $1.8 million as of April 30, 2020 and 2019, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets | Note 6 – Goodwill and Intangible Assets As of April 30, 2020, there is $259.9 million of goodwill and $437.6 million of indefinite-lived trademarks recorded on the Company’s condensed consolidated balance sheet. The Company reviews and tests its goodwill and intangible assets with indefinite lives for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may be impaired. Due to the impact of the COVID-19 pandemic on the Company’s operations, the Company performed a quantitative test of its goodwill as of April 30, 2020 using an income approach through a discounted cash flow analysis methodology. The discounted cash flow approach requires that certain assumptions and estimates be made regarding industry economic factors and future profitability. The Company also performed quantitative tests of each of its indefinite-lived intangible assets using a relief from royalty method, another form of the income approach. The relief from royalty method requires assumptions regarding industry economic factors and future profitability. There were no impairments identified as of April 30, 2020 as a result of these tests. While no impairment was identified as of the test date, $370.0 million of the Company’s indefinite-lived trademarks could be deemed to have a risk of future impairment as there is limited excess fair value over the carrying value of these assets at April 30, 2020. The continued impact of the COVID-19 pandemic could give rise to global and regional macroeconomic factors that could impact the Company’s assumptions relating to net sales growth rates, discount rates, tax rates or royalty rates and may result in future impairment charges for indefinite-lived intangible assets. The fair value of the Company’s goodwill and indefinite-lived intangible assets are considered a Level 3 valuation in the fair value hierarchy. |
Net Income per Common Share
Net Income per Common Share | 3 Months Ended |
Apr. 30, 2020 | |
Net Income per Common Share | |
Net Income per Common Share | Note 7 – Net Income (Loss) per Common Share Basic net income (loss) per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards and stock options outstanding during the period. Approximately 355,900 shares of common stock have been excluded from the diluted net income per share calculation for the three months ended April 30, 2019. All share-based payments outstanding that vest based on the achievement of performance and/or market price conditions, and for which the respective performance and/or market price conditions have not been achieved, have been excluded from the diluted per share calculation. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income (loss) per share: Three Months Ended April 30, 2020 2019 (In thousands, except per share amounts) Net income (loss) $ (39,295) $ 12,043 Basic net income (loss) per share: Basic common shares 48,025 48,781 Basic net income (loss) per share $ (0.82) $ 0.25 Diluted net income (loss) per share: Basic common shares 48,025 48,781 Dilutive restricted stock unit awards and stock options — 993 Diluted common shares 48,025 49,774 Diluted net income (loss) per share $ (0.82) $ 0.24 |
Notes Payable
Notes Payable | 3 Months Ended |
Apr. 30, 2020 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | Note 8 – Notes Payable Long-term debt consists of the following: April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Term loan $ 300,000 $ 300,000 $ 300,000 Revolving credit facility 500,000 22,509 — Note issued to LVMH 125,000 125,000 125,000 Unsecured loans 4,504 — 2,860 Subtotal 929,504 447,509 427,860 Less: Net debt issuance costs (1) (6,748) (9,360) (7,402) Debt discount (21,562) (27,062) (22,991) Current portion of long-term debt (512) — (673) Total $ 900,682 $ 411,087 $ 396,794 (1) Does not include debt issuance costs, net of amortization, totaling $3.9 million, $6.4 million and $4.6 million as of April 30, 2020, April 30, 2019 and January 31, 2020, respectively, related to the revolving credit facility. These debt issuance costs have been deferred and are classified in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets in accordance with ASU 2015-15. Term Loan The Company borrowed $350.0 million under a senior secured term loan facility (the “Term Loan”) that matures in December 2022. The Company prepaid $50.0 million in principal amount of the Term Loan, reducing the principal balance of the Term Loan to $300.0 million. The Term Loan is guaranteed by certain of the Company’s subsidiaries. Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to the London Interbank Offered Rate (“LIBOR”), subject to a 1% floor, plus an applicable margin of 5.25% or an alternate base rate (defined as the greatest of (i) the “prime rate” as published by the Wall Street Journal from time to time, (ii) the federal funds rate plus 0.5% or (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 4.25%, per annum, payable in cash. As of April 30, 2020, interest under the Term Loan was being paid at a weighted average rate of 6.66% per annum. The Term Loan is secured by certain assets of the Company and certain of its subsidiaries. The Term Loan is required to be prepaid with the proceeds of certain asset sales if such proceeds are not applied as required by the Term Loan within specified deadlines. The Term Loan contains covenants that, among other things, restrict the Company’s ability, subject to certain exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. This loan also includes a mandatory prepayment provision based on excess cash flow as defined in the term loan agreement. A first lien leverage covenant requires the Company to maintain a level of debt to EBITDA at a ratio as defined in the term loan agreement. As of April 30, 2020, the Company was in compliance with these covenants. Revolving Credit Facility The Company has a $650 million credit agreement (the “revolving credit facility”) under which amounts available are subject to borrowing base formulas and over advances as specified in the revolving credit facility agreement. Borrowings bear interest, at the Company’s option, at LIBOR plus a margin of 1.25% to 1.75% or an alternate base rate (defined as the greatest of (i) the “prime rate” of JPMorgan Chase Bank, N.A. from time to time, (ii) the federal funds rate plus 0.5% or (iii) the LIBOR rate for a borrowing with an interest period of one month) plus a margin of 0.25% to 0.75%, with the applicable margin determined based on the availability under the revolving credit facility agreement. The revolving credit facility has a five-year term ending December 1, 2021. In addition to paying interest on any outstanding borrowings under the revolving credit facility, the Company is required to pay a commitment fee to the lenders under the credit agreement with respect to the unutilized commitments. The commitment fee accrues at a rate equal to 0.25% per annum on the average daily amount of the available commitments. The revolving credit facility is secured by specified assets of the Company and certain of its subsidiaries. The revolving credit facility contains covenants that, among other things, restrict the Company’s ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires the Company to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months of the Company. As of April 30, 2020, the Company was in compliance with these covenants. As of April 30, 2020, the Company had $500 million of borrowings outstanding under the revolving credit facility, all of which are classified as long-term liabilities. This borrowing was a precautionary measure in response to the uncertainty of the circumstances surrounding the COVID-19 outbreak. The Company subsequently repaid an aggregate of $500 million of its borrowing under the revolving credit facility in May and June 2020. As of April 30, 2020, interest under the revolving credit agreement was being paid at an average rate of 2.13% per annum. The revolving credit facility also includes amounts available for letters of credit. As of April 30, 2020, there were outstanding trade and standby letters of credit amounting to $10.5 million and $5.2 million, respectively. LVMH Note As a portion of the consideration for the acquisition of DKI, the Company issued to LVMH a junior lien secured promissory note in the principal amount of $125.0 million (the “LVMH Note”) that bears interest at the rate of 2% per year. $75.0 million of the principal amount of the LVMH Note is due and payable on June 1, 2023 and $50.0 million of such principal amount is due and payable on December 1, 2023. ASC 820 requires the note to be recorded at fair value at issuance. As a result, the Company recorded a $40.0 million debt discount. This discount is being amortized as interest expense using the effective interest method over the term of the LVMH Note. Unsecured Loans On April 15, 2019, T.R.B. International SA (“TRB”), a subsidiary of Vilebrequin, borrowed €3.0 million under an unsecured loan (the “2019 Unsecured Loan”). During the term of the 2019 Unsecured Loan, TRB is required to make quarterly installment payments of €0.2 million. Interest on the outstanding principal amount of the 2019 Unsecured Loan accrues at a fixed rate equal to 1.50% per annum, payable quarterly. The 2019 Unsecured Loan originally matured on April 15, 2024. Due to the COVID-19 outbreak, the bank agreed to amend the 2019 Unsecured Loan to suspend the March and June 2020 quarterly installment payments and add these payments to the balance due at the end of the loan term. The 2019 Unsecured Loan now matures on September 15, 2024. On February 3, 2020, TRB borrowed €1.7 million under another unsecured loan (the “2020 Unsecured Loan”). During the term of the 2020 Unsecured Loan, TRB is required to make quarterly installment payments of €0.1 million. Interest on the outstanding principal amount of the 2020 Unsecured Loan accrues at a fixed rate equal to 1.50% per annum, payable quarterly. The 2020 Unsecured Loan originally matured on March 31, 2025. Due to the COVID-19 outbreak, the bank agreed to amend the 2020 Unsecured Loan to suspend the June 2020 quarterly installment payment and add this payment to the balance due at the end of the loan term. The 2020 Unsecured Loan now matures on June 30, 2025. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Apr. 30, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 9 – Revenue Recognition Disaggregation of Revenue In accordance with ASC 606 – Revenue from Contracts with Customers Wholesale Operations Segment. Retail Operations Segment. Contract Liabilities The Company’s contract liabilities, which are recorded within accrued expenses in the accompanying condensed consolidated balance sheets, primarily consist of gift card liabilities and advance payments from licensees. In some of its retail concepts, the Company also offers a limited loyalty program where customers accumulate points redeemable for cash discount certificates that expire 90 days after issuance. Total contract liabilities were $4.1 million, $6.3 million and $5.9 million at April 30, 2020, April 30, 2019 and January 31, 2020, respectively. The Company recognized $3.5 million in revenue for the three months ended April 30, 2020 related to contract liabilities that existed at January 31, 2020. The Company recognized $4.3 million in revenue for the three months ended April 30, 2019 related to contract liabilities that existed at January 31, 2019. There were no contract assets recorded as of April 30, 2020, April 30, 2019 and January 31, 2019. Substantially all of the advance payments from licensees as of April 30, 2020 are expected to be recognized as revenue within the next twelve months. |
Segments
Segments | 3 Months Ended |
Apr. 30, 2020 | |
Segments [Abstract] | |
SEGMENTS | Note 10 – Segments The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, consisting primarily of Wilsons Leather, G.H. Bass and DKNY stores, substantially all of which are operated as outlet stores. Sales through Company-owned websites, with the exception of Vilebrequin, are also included in the retail operations segment. The following segment information is presented for the three-month periods indicated below: Three Months Ended April 30, 2020 Wholesale Retail Elimination (1) Total (In thousands) Net sales $ 378,871 $ 33,908 $ (7,648) $ 405,131 Cost of goods sold 266,639 21,739 (7,648) 280,730 Gross profit 112,232 12,169 — 124,401 Selling, general and administrative expenses 112,600 42,020 — 154,620 Depreciation and amortization 8,292 1,575 — 9,867 (Gain) loss on lease terminations (5) 3,192 — 3,187 Operating profit (loss) $ (8,655) $ (34,618) $ — $ (43,273) Three Months Ended April 30, 2019 Wholesale Retail Elimination (1) Total (In thousands) Net sales $ 570,639 $ 81,904 $ (18,991) $ 633,552 Cost of goods sold 371,580 44,899 (18,991) 397,488 Gross profit 199,059 37,005 — 236,064 Selling, general and administrative expenses 147,258 54,601 — 201,859 Depreciation and amortization 7,522 1,951 — 9,473 Gain on lease terminations — (829) — (829) Operating profit (loss) $ 44,279 $ (18,718) $ — $ 25,561 (1) Represents intersegment sales to the Company’s retail operations segment. The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Wholesale $ 1,754,052 $ 1,813,238 $ 1,912,175 Retail 232,626 376,619 272,832 Corporate 812,283 256,687 380,130 Total assets $ 2,798,961 $ 2,446,544 $ 2,565,137 |
Stockholders' Equity.
Stockholders' Equity. | 3 Months Ended |
Apr. 30, 2020 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | Note 11 – Stockholders’ Equity For the three months ended April 30, 2020, the Company issued no shares of common stock and utilized 42,195 shares of treasury stock in connection with the vesting of equity awards. For the three months ended April 30, 2019, the Company issued no shares of common stock and utilized 207,325 shares of treasury stock in connection with the vesting of equity awards. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 12 – Income Taxes The Company recorded an income tax benefit of $16.4 million for the three months ended April 30, 2020. The Company recorded income tax expense of $2.6 million for the three months ended April 30, 2019. Historically, the Company has calculated its provision for income taxes during interim reporting periods by applying the estimated annual effective tax rate for the full fiscal year to pre-tax income or loss, excluding discrete items, for the reporting period. Due to the uncertainty related to the impact of the COVID-19 pandemic on our operations, the Company used a discrete effective tax rate method to calculate taxes for the three-month period ended April 30, 2020. The Company will continue to evaluate income tax estimates under the historical method in subsequent quarters and employ a discrete effective tax rate method if warranted. |
Canadian Customs Duty Examinati
Canadian Customs Duty Examination | 3 Months Ended |
Apr. 30, 2020 | |
Canadian Customs Duty Examination [Abstract] | |
Canadian Customs Duty Examination | Note 13 – Canadian Customs Duty Examination In October 2017, the Canada Border Service Agency (“CBSA”) issued a final audit report to G-III Apparel Canada ULC (“G-III Canada”), a wholly-owned subsidiary of the Company. The report challenged the valuation used by G-III Canada for certain goods imported into Canada. The period covered by the examination is February 1, 2014 through October 27, 2017, the date of the final report. The CBSA has requested G-III Canada to reassess its customs entries for that period using the price paid or payable by the Canadian retail customers for certain imported goods rather than the price paid by G-III Canada to the vendor. The CBSA has also requested that G-III Canada change the valuation method used to pay duties with respect to goods imported in the future. In March 2018, G-III Canada provided a bond to guarantee payment to the CBSA for additional duties payable as a result of the reassessment required by the final audit report. The Company secured a bond in the amount of CAD$26.9 million ($20.9 million) representing customs duty and interest through December 31, 2017 that is claimed to be owed to the CBSA. In March 2018, the Company amended the duties filed for the month of January 2018 based on the new valuation method. This amount was paid to the CBSA. Beginning February 1, 2018, the Company began paying duties based on the new valuation method. There were no amounts paid and deferred for the three months ended April 30, 2020, related to the higher dutiable values. Cumulative amounts paid and deferred through April 30, 2020, related to the higher dutiable values, were CAD$13.5 million ($9.7 million). Effective June 1, 2019, G-III commenced paying based on the dutiable value of G-III Canada’s imports based on the pre-audit levels. G-III continued to defer the additional duty paid through the month of May 2019 pending the final outcome of the appeal. G-III Canada, based on the advice of counsel, believes it has positions that support its ability to receive a refund of amounts claimed to be owed to the CBSA on appeal and intends to vigorously contest the findings of the CBSA. G-III Canada filed its appeal with the CBSA in May 2018. |
Recent Adopted and Issued Accou
Recent Adopted and Issued Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2020 | |
Recent Adopted and Issued Accounting Pronouncements [Abstract] | |
Recent Adopted and Issued Accounting Pronouncements | Note 14 – Recent Adopted and Issued Accounting Pronouncements Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This pronouncement changed how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 replaced the “incurred loss” model with an “expected loss” model. Under the “incurred loss” model, a loss (or allowance) was recognized only when an event had occurred (such as a payment delinquency) that caused the entity to believe that a loss was probable (i.e., that it had been “incurred”). Under the “expected loss” model, an entity recognizes a loss (or allowance) upon initial recognition of the asset that reflects all future events that may lead to a loss being realized, regardless of whether it is probable that the future event will occur. The “incurred loss” model considered past events and current conditions, while the “expected loss” model includes expectations for the future which have yet to occur. The Company adopted ASU 2016-16 as of February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which made a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement among or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in ASU 2018-13 modified the disclosure requirements with respect to fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty have been applied prospectively in the initial fiscal year of adoption. All other amendments have been applied retrospectively to all periods presented in the initial year of adoption. The Company adopted the standard effective February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is A Service Contract which addresses the accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. ASU 2018-15 aligned the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, ASU 2018-15 amended ASC 350 to include in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The Company adopted the standard effective February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard is intended to provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The guidance was effective upon issuance, and may be applied prospectively through December 31, 2022. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. Issued Accounting Guidance Being Evaluated for Adoption The Company has reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the condensed consolidated financial statements. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Apr. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 – Subsequent Events In May and June 2020, the Company repaid an aggregate of $500 million of its borrowings under its revolving credit facility as financial markets stabilized. On June 5, 2020, the Company announced the restructuring of its retail operations segment including the closing of all Wilsons Leather and G.H. Bass stores. Additionally, the Company will close all Calvin Klein Performance stores. In connection with the restructuring of the retail operations segment, the Company expects to incur an aggregate charge of approximately $100 million related to landlord termination fees, severance costs, store liquidation and closing costs, write-offs related to right-of-use assets and legal and professional fees. The Company expects the cash portion of this charge to be approximately $65 million. |
Recent Adopted and Issued Acc_2
Recent Adopted and Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Apr. 30, 2020 | |
Recent Adopted and Issued Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This pronouncement changed how entities account for credit impairment for trade and other receivables, as well as for certain financial assets and other instruments. ASU 2016-13 replaced the “incurred loss” model with an “expected loss” model. Under the “incurred loss” model, a loss (or allowance) was recognized only when an event had occurred (such as a payment delinquency) that caused the entity to believe that a loss was probable (i.e., that it had been “incurred”). Under the “expected loss” model, an entity recognizes a loss (or allowance) upon initial recognition of the asset that reflects all future events that may lead to a loss being realized, regardless of whether it is probable that the future event will occur. The “incurred loss” model considered past events and current conditions, while the “expected loss” model includes expectations for the future which have yet to occur. The Company adopted ASU 2016-16 as of February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement,” which made a number of changes meant to add, modify or remove certain disclosure requirements associated with the movement among or hierarchy associated with Level 1, Level 2 and Level 3 fair value measurements. The amendments in ASU 2018-13 modified the disclosure requirements with respect to fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. The amendments to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty have been applied prospectively in the initial fiscal year of adoption. All other amendments have been applied retrospectively to all periods presented in the initial year of adoption. The Company adopted the standard effective February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is A Service Contract which addresses the accounting for implementation costs incurred in a cloud computing arrangement (“CCA”) that is a service contract. ASU 2018-15 aligned the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. Specifically, ASU 2018-15 amended ASC 350 to include in its scope implementation costs of a CCA that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The Company adopted the standard effective February 1, 2020. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASC 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The standard is intended to provide optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The guidance was effective upon issuance, and may be applied prospectively through December 31, 2022. The adoption of this standard did not result in a material change to the Company’s condensed consolidated financial statements. |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Accounts Receivable and Allowance for Doubtful Accounts | April 30, 2020 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 428,762 $ 2,828 $ 431,590 Allowance for doubtful accounts (10,419) (28) (10,447) Accounts receivable, net $ 418,343 $ 2,800 $ 421,143 |
Activity in Allowance for Credit Losses | April 30, 2020 Wholesale Retail Total (In thousands) Beginning balance $ (628) $ (82) $ (710) Provision for credit losses (9,791) 54 (9,737) Ending balance $ (10,419) $ (28) $ (10,447) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Fair Value of Financial Instruments [Abstract] | |
Schedule of carrying values and estimated fair values of debt instruments | Carrying Value Fair Value April 30, April 30, January 31, April 30, April 30, January 31, Financial Instrument Level 2020 2019 2020 2020 2019 2020 (In thousands) Term loan 2 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 Revolving credit facility 2 500,000 22,509 — 500,000 22,509 — Note issued to LVMH 3 103,438 97,938 102,009 109,910 90,065 95,126 Unsecured loans 2 4,504 — 2,860 4,504 — 2,860 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Schedule of lease assets and liabilities | Leases Classification April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Assets Operating Operating lease assets $ 251,565 $ 320,169 $ 270,032 Total lease assets $ 251,565 $ 320,169 $ 270,032 Liabilities Current operating Current operating lease liabilities $ 63,632 $ 74,761 $ 63,166 Noncurrent operating Noncurrent operating lease liabilities 231,323 286,663 249,040 Total lease liabilities $ 294,955 $ 361,424 $ 312,206 |
Schedule of maturity of operating lease liabilities | Year Ending January 31, Amount (In thousands) 2021 $ 63,890 2022 76,088 2023 66,758 2024 52,732 2025 42,709 After 2025 58,068 Total lease payments $ 360,245 Less: Interest 65,290 Present value of lease liabilities $ 294,955 |
Net Income per Common Share (Ta
Net Income per Common Share (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Net Income per Common Share | |
Schedule of reconciliation between basic and diluted net income per share | The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income (loss) per share: Three Months Ended April 30, 2020 2019 (In thousands, except per share amounts) Net income (loss) $ (39,295) $ 12,043 Basic net income (loss) per share: Basic common shares 48,025 48,781 Basic net income (loss) per share $ (0.82) $ 0.25 Diluted net income (loss) per share: Basic common shares 48,025 48,781 Dilutive restricted stock unit awards and stock options — 993 Diluted common shares 48,025 49,774 Diluted net income (loss) per share $ (0.82) $ 0.24 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Notes Payable [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Term loan $ 300,000 $ 300,000 $ 300,000 Revolving credit facility 500,000 22,509 — Note issued to LVMH 125,000 125,000 125,000 Unsecured loans 4,504 — 2,860 Subtotal 929,504 447,509 427,860 Less: Net debt issuance costs (1) (6,748) (9,360) (7,402) Debt discount (21,562) (27,062) (22,991) Current portion of long-term debt (512) — (673) Total $ 900,682 $ 411,087 $ 396,794 (1) Does not include debt issuance costs, net of amortization, totaling $3.9 million, $6.4 million and $4.6 million as of April 30, 2020, April 30, 2019 and January 31, 2020, respectively, related to the revolving credit facility. These debt issuance costs have been deferred and are classified in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets in accordance with ASU 2015-15. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Apr. 30, 2020 | |
Segments [Abstract] | |
Schedule of information regarding reportable segments | The following segment information is presented for the three-month periods indicated below: Three Months Ended April 30, 2020 Wholesale Retail Elimination (1) Total (In thousands) Net sales $ 378,871 $ 33,908 $ (7,648) $ 405,131 Cost of goods sold 266,639 21,739 (7,648) 280,730 Gross profit 112,232 12,169 — 124,401 Selling, general and administrative expenses 112,600 42,020 — 154,620 Depreciation and amortization 8,292 1,575 — 9,867 (Gain) loss on lease terminations (5) 3,192 — 3,187 Operating profit (loss) $ (8,655) $ (34,618) $ — $ (43,273) Three Months Ended April 30, 2019 Wholesale Retail Elimination (1) Total (In thousands) Net sales $ 570,639 $ 81,904 $ (18,991) $ 633,552 Cost of goods sold 371,580 44,899 (18,991) 397,488 Gross profit 199,059 37,005 — 236,064 Selling, general and administrative expenses 147,258 54,601 — 201,859 Depreciation and amortization 7,522 1,951 — 9,473 Gain on lease terminations — (829) — (829) Operating profit (loss) $ 44,279 $ (18,718) $ — $ 25,561 (1) Represents intersegment sales to the Company’s retail operations segment. |
Schedule of total assets for each reportable segments | The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: April 30, 2020 April 30, 2019 January 31, 2020 (In thousands) Wholesale $ 1,754,052 $ 1,813,238 $ 1,912,175 Retail 232,626 376,619 272,832 Corporate 812,283 256,687 380,130 Total assets $ 2,798,961 $ 2,446,544 $ 2,565,137 |
Basis of Presentation - Textual
Basis of Presentation - Textuals (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jun. 08, 2020 | May 31, 2020 | Mar. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Deferred lease payments | $ 6,800 | ||||
Proceeds from borrowings - revolving credit facility | $ 500,000 | 855,477 | $ 505,005 | ||
Repayment of borrowings - revolving facility | $ 355,477 | $ 482,496 | |||
KL North America BV ("KLNA") and Fabco Holding B.V. ("Fabco") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 49.00% | ||||
Karl Lagerfeld Holding B.V. ("KLH") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Percentage of ownership interest | 19.00% | ||||
Subsequent Event | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Repayment of borrowings - revolving facility | $ 500,000 | $ 500,000 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Narrative) (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2020USD ($) | |
Increase in allowance for doubtful accounts | $ 9,737 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts (Accounts Receivable and Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | $ 431,590 | |
Allowance for doubtful accounts | (10,447) | $ (710) |
Accounts receivable, net | 421,143 | |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | 428,762 | |
Allowance for doubtful accounts | (10,419) | (628) |
Accounts receivable, net | 418,343 | |
Retail | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | 2,828 | |
Allowance for doubtful accounts | (28) | $ (82) |
Accounts receivable, net | $ 2,800 |
Allowance for Doubtful Accoun_5
Allowance for Doubtful Accounts (Activity in Allowance for Credit Losses) (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | |
Beginning balance | $ (710) |
Provision for credit losses | (9,737) |
Ending balance | (10,447) |
Wholesale | |
Segment Reporting Information [Line Items] | |
Beginning balance | (628) |
Provision for credit losses | (9,791) |
Ending balance | (10,419) |
Retail | |
Segment Reporting Information [Line Items] | |
Beginning balance | (82) |
Provision for credit losses | 54 |
Ending balance | $ (28) |
Inventories - Textuals (Details
Inventories - Textuals (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Inventory [Line Items] | |||
Inventory held on consignment | $ 6.6 | $ 9.1 | $ 3.8 |
Prepaid Expenses and Other Current Assets | |||
Inventory [Line Items] | |||
Inventory return asset | $ 21.3 | $ 31 | $ 35.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Senior secured term loan facility (the "Term Loan") | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | $ 300,000 | ||
Level 2 | Senior secured term loan facility (the "Term Loan") | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 300,000 | $ 300,000 | $ 300,000 |
Debt instruments, fair value | 300,000 | 300,000 | 300,000 |
Level 2 | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 500,000 | 22,509 | |
Debt instruments, fair value | 500,000 | 22,509 | |
Level 2 | Unsecured Loan | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 4,504 | 2,860 | |
Debt instruments, fair value | 4,504 | 2,860 | |
Level 3 | LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 103,438 | 102,009 | 97,938 |
Debt instruments, fair value | $ 109,910 | $ 95,126 | $ 90,065 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2020 | |
ASC 842 | ||
Debt Instrument [Line Items] | ||
Operating Lease, Impairment Loss | $ 9.6 | |
LVMH Note | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 2.00% | |
Debt discount | $ 40 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Lessee, Operating Lease, Description [Abstract] | ||
Option to extend | true | |
Lessee, operating lease, option to terminate | The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor. | |
Variable and short term cost | $ 3.4 | $ 3.3 |
Minimum | ||
Lessee, Operating Lease, Description [Abstract] | ||
Operating lease, contract term | 1 year | |
Renewal term | 1 year | |
Maximum | ||
Lessee, Operating Lease, Description [Abstract] | ||
Operating lease, contract term | 10 years | |
Renewal term | 10 years |
Leases - Lease assets and liabi
Leases - Lease assets and liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Assets and Liabilities, Lessee [Abstract] | |||
Operating lease assets | $ 251,565 | $ 270,032 | $ 320,169 |
Classification of operating lease assets | us-gaap:OperatingLeaseRightOfUseAsset | ||
Total lease assets | $ 251,565 | 270,032 | 320,169 |
Current operating lease liabilities | $ 63,632 | 63,166 | 74,761 |
Classification current operating lease liabilities | us-gaap:OperatingLeaseLiabilityCurrent | ||
Noncurrent operating lease liabilities | $ 231,323 | 249,040 | 286,663 |
Classification of noncurrent operating liabilities | us-gaap:OperatingLeaseLiabilityNoncurrent | ||
Total lease liabilities | $ 294,955 | $ 312,206 | $ 361,424 |
Leases - Lease cost (Details)
Leases - Lease cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Selling, general and administrative expenses | ||
Lease, Cost [Abstract] | ||
Lease costs | $ 22.4 | $ 25 |
Leases - Future minimum payment
Leases - Future minimum payments under our operating lease (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2021 | $ 63,890 | ||
2021 | 6,800 | ||
2022 | 76,088 | ||
2023 | 66,758 | ||
2024 | 52,732 | ||
2025 | 42,709 | ||
After 2025 | 58,068 | ||
Total lease payments | 360,245 | ||
Less: Interest | 65,290 | ||
Present value of lease liabilities | $ 294,955 | $ 312,206 | $ 361,424 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Leases [Abstract] | ||
Weighted average remaining lease term | 5 years 1 month 6 days | |
Weighted average discount rate | 7.90% | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 23.4 | $ 26.4 |
Right-of-use assets obtained in exchange for lease obligations | $ 4.6 | $ 1.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets - Textuals (Details) - USD ($) | 3 Months Ended | ||
Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 | |
Goodwill | $ 259,922,000 | $ 260,622,000 | $ 260,578,000 |
Trademarks | 437,643,000 | $ 438,658,000 | $ 438,675,000 |
Impairments of indefinite-lived trademarks | 0 | ||
Indefinite-lived intangible assets deemed to have a risk of future impairment | $ 370,000,000 |
Net Income per Common Share - R
Net Income per Common Share - Reconciliation between basic and diluted net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Net Income per Common Share | ||
Net income (in dollars) | $ (39,295) | $ 12,043 |
Basic net income per share: | ||
Basic common shares | 48,025 | 48,781 |
Basic net income per share (in dollars per share) | $ (0.82) | $ 0.25 |
Diluted net income per share: | ||
Basic common shares | 48,025 | 48,781 |
Diluted restricted stock awards and stock options | 993 | |
Diluted common shares | 48,025 | 49,774 |
Diluted net income per share (in dollars per share) | $ (0.82) | $ 0.24 |
Net Income per Common Share - T
Net Income per Common Share - Textuals (Details) | 3 Months Ended |
Apr. 30, 2019shares | |
Net Income per Common Share | |
Common stock excluded from the diluted net income per share calculation | 355,900 |
Notes Payable - Long-term debt
Notes Payable - Long-term debt (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | $ 929,504 | $ 427,860 | $ 447,509 |
Less: Net debt issuance costs (1) | (6,748) | (7,402) | (9,360) |
Debt discount | (21,562) | (22,991) | (27,062) |
Current portion of long-term debt | (512) | (673) | |
Total | 900,682 | 396,794 | 411,087 |
Senior secured term loan facility (the "Term Loan") | |||
Debt Instrument [Line Items] | |||
Subtotal | 300,000 | ||
Senior secured term loan facility (the "Term Loan") | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 300,000 | 300,000 | 300,000 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 3,900 | 4,600 | 6,400 |
Revolving credit facility | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 500,000 | 22,509 | |
LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt discount | (40,000) | ||
LVMH Note | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 125,000 | 125,000 | $ 125,000 |
Unsecured Loan | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | $ 4,504 | $ 2,860 |
Notes Payable - Textuals (Detai
Notes Payable - Textuals (Detail) $ in Thousands, € in Millions | Dec. 01, 2016USD ($) | Jun. 08, 2020USD ($) | May 31, 2020USD ($) | Apr. 30, 2020EUR (€) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | Feb. 03, 2020EUR (€) | Apr. 15, 2019EUR (€) |
Debt Instrument [Line Items] | ||||||||
Repayment of borrowings - revolving facility | $ 355,477 | $ 482,496 | ||||||
Senior secured term loan facility (the "Term Loan") | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | 350,000 | |||||||
Prepayment of principal amount | $ 50,000 | |||||||
Debt instruments, carrying value | $ 300,000 | |||||||
Loan description | The Term Loan contains covenants that, among other things, restrict the Company’s ability, subject to certain exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. This loan also includes a mandatory prepayment provision based on excess cash flow as defined in the term loan agreement. A first lien leverage covenant requires the Company to maintain a level of debt to EBITDA at a ratio as defined in the term loan agreement. | The Term Loan contains covenants that, among other things, restrict the Company’s ability, subject to certain exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. This loan also includes a mandatory prepayment provision based on excess cash flow as defined in the term loan agreement. A first lien leverage covenant requires the Company to maintain a level of debt to EBITDA at a ratio as defined in the term loan agreement. | ||||||
Debt covenant compliance | As of April 30, 2020, the Company was in compliance with these covenants. | As of April 30, 2020, the Company was in compliance with these covenants. | ||||||
Interest rate terms | Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to the London Interbank Offered Rate (“LIBOR”), subject to a 1% floor, plus an applicable margin of 5.25% or an alternate base rate (defined as the greatest of (i) the “prime rate” as published by the Wall Street Journal from time to time, (ii) the federal funds rate plus 0.5% or (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 4.25%, per annum, payable in cash. As of April 30, 2020, interest under the Term Loan was being paid at a weighted average rate of 6.66% per annum. | Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to the London Interbank Offered Rate (“LIBOR”), subject to a 1% floor, plus an applicable margin of 5.25% or an alternate base rate (defined as the greatest of (i) the “prime rate” as published by the Wall Street Journal from time to time, (ii) the federal funds rate plus 0.5% or (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 4.25%, per annum, payable in cash. As of April 30, 2020, interest under the Term Loan was being paid at a weighted average rate of 6.66% per annum. | ||||||
Floor rate | 1.00% | 1.00% | ||||||
Applicable margin | 5.25% | 5.25% | ||||||
Debt instrument interest rate | 6.66% | |||||||
Senior secured term loan facility (the "Term Loan") | LIBOR plus | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 4.25% | 4.25% | ||||||
Senior secured term loan facility (the "Term Loan") | Federal funds rate plus | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 0.50% | 0.50% | ||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date | Dec. 1, 2021 | Dec. 1, 2021 | ||||||
Loan description | The revolving credit facility contains covenants that, among other things, restrict the Company’s ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires the Company to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months of the Company. | The revolving credit facility contains covenants that, among other things, restrict the Company’s ability, subject to specified exceptions, to incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires the Company to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months of the Company. | ||||||
Debt covenant compliance | As of April 30, 2020, the Company was in compliance with these covenants. | As of April 30, 2020, the Company was in compliance with these covenants. | ||||||
Minimum fixed charge coverage ratio | 100.00% | 100.00% | ||||||
Maximum borrowing amount | $ 650,000 | |||||||
Credit agreement average rate | 2.13% | |||||||
Debt instrument commitment fee percentage | 0.25% | 0.25% | ||||||
Term of credit agreement | 5 years | 5 years | ||||||
Revolving credit facility | Long term liabilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 500,000 | |||||||
Revolving credit facility | Trade Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | 10,500 | |||||||
Revolving credit facility | Standby Letters of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowings outstanding | $ 5,200 | |||||||
Revolving credit facility | LIBOR plus | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 1.25% | 1.25% | ||||||
Revolving credit facility | LIBOR plus | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 1.75% | 1.75% | ||||||
Revolving credit facility | Federal funds rate plus | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 0.50% | 0.50% | ||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) Swap Rate [Member] | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 0.25% | 0.25% | ||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) Swap Rate [Member] | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Spread interest rate | 0.75% | 0.75% | ||||||
LVMH Note | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 125,000 | |||||||
Debt instrument interest rate | 2.00% | |||||||
Debt discount | $ 40,000 | |||||||
LVMH Note | Notes Payable Due On June 1 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 75,000 | |||||||
Maturity date | Jun. 1, 2023 | Jun. 1, 2023 | ||||||
LVMH Note | Notes Payable due on December 1, 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | $ 50,000 | |||||||
Maturity date | Dec. 1, 2023 | Dec. 1, 2023 | ||||||
Unsecured Loan | Unsecured Loan 2019 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | € | € 3 | |||||||
Maturity date | Sep. 15, 2024 | Sep. 15, 2024 | ||||||
Debt instrument interest rate | 1.50% | |||||||
Installment payments | € | € 0.2 | |||||||
Unsecured Loan | Unsecured Loan 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of debt | € | € 1.7 | |||||||
Maturity date | Jun. 30, 2025 | Jun. 30, 2025 | ||||||
Debt instrument interest rate | 1.50% | |||||||
Installment payments | € | € 0.1 | |||||||
Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of borrowings - revolving facility | $ 500,000 | $ 500,000 |
Revenue Recognition - Textuals
Revenue Recognition - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Jan. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Customer refund liabilities | $ 157,886 | $ 210,310 | $ 233,418 |
Contract liability | 4,100 | 6,300 | 5,900 |
Revenue recognized related to contract liabilities | 3,500 | 4,300 | |
Contract assets | $ 0 | $ 0 | $ 0 |
Segments - Information regardin
Segments - Information regarding reportable segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 405,131 | $ 633,552 |
Cost of goods sold | 280,730 | 397,488 |
Gross profit | 124,401 | 236,064 |
Selling, general and administrative expenses | 154,620 | 201,859 |
Depreciation and amortization | 9,867 | 9,473 |
Loss (gain) on lease terminations | 3,187 | (829) |
Operating profit (loss) | (43,273) | 25,561 |
Operating Segments | Wholesale | ||
Segment Reporting Information [Line Items] | ||
Net sales | 378,871 | 570,639 |
Cost of goods sold | 266,639 | 371,580 |
Gross profit | 112,232 | 199,059 |
Selling, general and administrative expenses | 112,600 | 147,258 |
Depreciation and amortization | 8,292 | 7,522 |
Loss (gain) on lease terminations | (5) | |
Operating profit (loss) | (8,655) | 44,279 |
Operating Segments | Retail | ||
Segment Reporting Information [Line Items] | ||
Net sales | 33,908 | 81,904 |
Cost of goods sold | 21,739 | 44,899 |
Gross profit | 12,169 | 37,005 |
Selling, general and administrative expenses | 42,020 | 54,601 |
Depreciation and amortization | 1,575 | 1,951 |
Loss (gain) on lease terminations | 3,192 | (829) |
Operating profit (loss) | (34,618) | (18,718) |
Elimination | ||
Segment Reporting Information [Line Items] | ||
Net sales | (7,648) | (18,991) |
Cost of goods sold | $ (7,648) | $ (18,991) |
Segments - Information of total
Segments - Information of total assets for company's reportable segments (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 |
Segment Reporting Information [Line Items] | |||
Total assets | $ 2,798,961 | $ 2,565,137 | $ 2,446,544 |
Corporate Segment | |||
Segment Reporting Information [Line Items] | |||
Total assets | 812,283 | 380,130 | 256,687 |
Operating Segments | Wholesale | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,754,052 | 1,912,175 | 1,813,238 |
Operating Segments | Retail | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 232,626 | $ 272,832 | $ 376,619 |
Segments - Textuals (Details)
Segments - Textuals (Details) | 3 Months Ended |
Apr. 30, 2020segment | |
Segments [Abstract] | |
Number of reportable segments | 2 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | $ 1,290,672 | $ 1,189,009 |
Equity awards exercised/vested, net | 40 | |
Share-based compensation expense | (811) | 4,227 |
Taxes paid for net share settlements | (306) | (5,686) |
Other comprehensive loss, net | (4,026) | (3,227) |
Net income (loss) | (39,295) | 12,043 |
Balance at end of period | 1,246,234 | 1,186,826 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 264 | 264 |
Balance at end of period | 264 | 264 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 452,142 | 464,112 |
Equity awards exercised/vested, net | (1,185) | (5,818) |
Share-based compensation expense | (811) | 4,227 |
Taxes paid for net share settlements | (306) | (5,686) |
Balance at end of period | 449,840 | 456,835 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (18,008) | (15,194) |
Other comprehensive loss, net | (4,026) | (3,227) |
Balance at end of period | (22,034) | (18,421) |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | 893,138 | 758,881 |
Net income (loss) | (39,295) | 12,043 |
Balance at end of period | 853,843 | 761,344 |
Common Stock Held in Treasury | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Balance at beginning of period | (36,864) | (19,054) |
Equity awards exercised/vested, net | 1,185 | 5,858 |
Balance at end of period | $ (35,679) | $ (13,196) |
Stockholders' Equity - Textuals
Stockholders' Equity - Textuals (Details) - shares | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Stockholders' Equity [Abstract] | ||
Common stock, shares issued | 0 | 0 |
Treasury stock, shares utilized of equity awards | 42,195 | 207,325 |
Income Taxes - Textuals (Detail
Income Taxes - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Taxes [Line Items] | ||
Income Tax Expense (Benefit) | $ (16,413) | $ 2,550 |
Canadian Customs Duty Examina_2
Canadian Customs Duty Examination - Textuals (Details) - CBSA $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2018CAD ($) | Mar. 31, 2018USD ($) | Apr. 30, 2020CAD ($) | Apr. 30, 2020USD ($) | |
Canadian Customs Duty Examination [Line Items] | ||||
Value of bond issued for prepayments of additional duties | $ 26.9 | $ 20.9 | ||
Deferred higher dutiable value | $ 13.5 | $ 9.7 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jun. 08, 2020 | May 31, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Jun. 05, 2020 | |
Subsequent Event [Line Items] | |||||
Repayment of borrowings - revolving facility | $ 355,477 | $ 482,496 | |||
Restructuring and related cost expected cost cash portion | $ 65,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Repayment of borrowings - revolving facility | $ 500,000 | $ 500,000 | |||
Restructuring expected costs | $ 100,000 |