Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2021 | Mar. 22, 2021 | Jul. 31, 2020 | |
Document And Entity Information Abstract | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2021 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 431,878,201 | ||
Entity Common Stock Shares Outstanding | 48,376,636 | ||
Entity Central Index Key | 0000821002 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 351,934 | $ 197,372 |
Accounts receivable, net of allowance for doubtful accounts of $17.5 million and $0.7 million, respectively | 492,698 | 530,137 |
Inventories | 416,503 | 551,918 |
Prepaid income taxes | 26,102 | 8,566 |
Prepaid expenses and other current assets | 56,803 | 80,695 |
Total current assets | 1,344,040 | 1,368,688 |
Investments in unconsolidated affiliates | 63,523 | 61,987 |
Property and equipment, net | 57,064 | 76,023 |
Operating lease assets | 186,070 | 270,032 |
Other assets, net | 38,785 | 32,629 |
Other intangibles, net | 35,059 | 38,363 |
Deferred income tax assets, net | 5,098 | 18,135 |
Trademarks | 443,612 | 438,658 |
Goodwill | 263,135 | 260,622 |
Total assets | 2,436,386 | 2,565,137 |
Current liabilities | ||
Current portion of notes payable | 4,402 | 673 |
Accounts payable | 139,183 | 204,786 |
Accrued expenses | 102,787 | 101,838 |
Customer refund liabilities | 99,355 | 233,418 |
Current operating lease liabilities | 43,560 | 63,166 |
Income tax payable | 11,853 | 8,468 |
Other current liabilities | 862 | 1,611 |
Total current liabilities | 402,002 | 613,960 |
Notes payable, net of discount and unamortized issuance costs | 507,950 | 396,794 |
Deferred income tax liabilities, net | 20,353 | 7,952 |
Noncurrent operating lease liabilities | 161,668 | 249,040 |
Other noncurrent liabilities | 7,208 | 6,719 |
Total liabilities | 1,099,181 | 1,274,465 |
Redeemable noncontrolling interests | 964 | |
Stockholders' Equity | ||
Preferred stock; 1,000 shares authorized; no shares issued | ||
Common stock - $0.01 par value; 120,000 shares authorized; 49,396 and 49,396 shares issued, respectively | 264 | 264 |
Additional paid-in capital | 448,417 | 452,142 |
Accumulated other comprehensive loss | (2,094) | (18,008) |
Retained earnings | 916,683 | 893,138 |
Common stock held in treasury, at cost - 1,019 and 1,386 shares, respectively | (27,029) | (36,864) |
Total stockholders' equity | 1,336,241 | 1,290,672 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 2,436,386 | $ 2,565,137 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Millions | Jan. 31, 2021 | Jan. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts, accrued returns and sales discounts on accounts receivable (in dollars) | $ 17.5 | $ 0.7 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 120,000 | 120,000 |
Common stock, shares issued | 49,396 | 49,396 |
Treasury stock, shares | 1,019 | 1,386 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 2,055,146 | $ 3,160,464 | $ 3,076,208 |
Cost of goods sold | 1,310,704 | 2,042,524 | 1,969,099 |
Gross profit | 744,442 | 1,117,940 | 1,107,109 |
Selling, general and administrative expenses | 605,102 | 832,180 | 834,763 |
Depreciation and amortization | 38,625 | 38,735 | 38,819 |
Asset impairments, net of loss (gain) on lease terminations | 17,873 | 19,371 | 2,813 |
Operating profit (loss) | 82,842 | 227,654 | 230,714 |
Other loss | 3,238 | (1,149) | (2,960) |
Interest and financing charges, net | (50,354) | (44,407) | (43,924) |
Income before income taxes | 35,726 | 182,098 | 183,830 |
Income tax expense | 12,203 | 38,261 | 45,763 |
Net income | 23,523 | 143,837 | 138,067 |
Less: Loss attributable to noncontrolling interests | (22) | ||
Net income attributable to G-III Apparel Group, Ltd. | $ 23,545 | $ 143,837 | $ 138,067 |
Basic: | |||
Net income (loss) per common share | $ 0.49 | $ 2.98 | $ 2.81 |
Weighted average number of shares outstanding (in shares) | 48,242 | 48,209 | 49,140 |
Diluted: | |||
Net income per common share | $ 0.48 | $ 2.94 | $ 2.75 |
Weighted average number of shares outstanding (in shares) | 48,781 | 48,895 | 50,274 |
Other comprehensive income: | |||
Foreign currency translation adjustments | $ (15,885) | $ (2,814) | $ (9,672) |
Other comprehensive loss | (15,885) | (2,814) | (9,672) |
Comprehensive income | 7,638 | 141,023 | 128,395 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest [Abstract] | |||
Net loss | (22) | ||
Foreign currency translation adjustments | (29) | ||
Comprehensive income attributable to noncontrolling interests | (51) | ||
Comprehensive income attributable to G-III Apparel Group, Ltd | $ 7,587 | $ 141,023 | $ 128,395 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Common Stock Held in Treasury | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at beginning of period (ASC 606) at Jan. 31, 2018 | $ (53,728) | $ (53,728) | ||||||
Balance at beginning of period at Jan. 31, 2018 | $ 245 | $ 451,844 | $ (5,522) | $ 674,542 | $ (420) | $ 1,120,689 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Equity awards exercised/vested, net | 19 | (1,595) | 1,677 | 101 | ||||
Share-based compensation expense | 19,694 | 19,694 | ||||||
Taxes paid for net share settlements | (5,738) | (5,738) | ||||||
Other comprehensive gain/loss, net | (93) | (9,672) | (9,765) | |||||
Other comprehensive loss, net | (9,672) | |||||||
Repurchases of common stock | (20,311) | (20,311) | ||||||
Net income | 138,067 | 138,067 | ||||||
Balance at end of period (ASC 842) at Jan. 31, 2019 | $ (9,580) | $ (9,580) | ||||||
Balance at end 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 | (17,290) | 17,406 | 116 | |||||
Share-based compensation expense | 17,559 | 17,559 | ||||||
Taxes paid for net share settlements | (12,239) | (12,239) | ||||||
Other comprehensive loss, net | (2,814) | (2,814) | ||||||
Repurchases of common stock | (35,216) | (35,216) | ||||||
Net income | 143,837 | 143,837 | ||||||
Balance at end 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 | (9,538) | 9,835 | 297 | |||||
Share-based compensation expense | 6,137 | 6,137 | ||||||
Taxes paid for net share settlements | (324) | (324) | ||||||
Other comprehensive gain/loss, net | 15,914 | 15,914 | ||||||
Other comprehensive loss, net | (15,885) | |||||||
Net income | 23,545 | 23,545 | ||||||
Balance at end of period at Jan. 31, 2021 | $ 264 | $ 448,417 | $ (2,094) | $ 916,683 | $ (27,029) | $ 1,336,241 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Cash flows from operating activities | |||
Net income attributable to G-III Apparel Group, Ltd. | $ 23,545 | $ 143,837 | $ 138,067 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 38,625 | 38,735 | 38,819 |
Loss on disposal of fixed assets | 1,079 | 2,500 | 128 |
Non-cash operating lease costs | 71,368 | 73,273 | |
Loss (gain) on lease terminations | (2,541) | (2,415) | |
Asset impairments | 20,414 | 21,787 | 2,813 |
Dividend received from unconsolidated affiliate | 2,695 | 3,675 | |
Equity (gain) loss in unconsolidated affiliates | (601) | (3,200) | 1,543 |
Share-based compensation | 6,137 | 17,559 | 19,694 |
Deferred financing charges and debt discount amortization | 10,014 | 10,491 | 10,052 |
Extinguishment of deferred financing costs | 6,503 | ||
Deferred income taxes | 24,844 | 319 | 5,404 |
Non-cash gains recorded in conjunction with Fabco acquisition | (2,693) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 38,900 | (28,003) | (207,877) |
Inventories | 143,525 | 24,465 | (23,568) |
Income taxes, net | (13,795) | (621) | (3,866) |
Prepaid expenses and other current assets | 24,514 | 15,929 | (47,959) |
Other assets, net | (663) | (731) | (6,237) |
Customer refund liabilities | (136,436) | (10,172) | 177,144 |
Operating lease liabilities | (86,448) | (79,843) | |
Accounts payable, accrued expenses and other liabilities | (94,228) | (18,564) | (328) |
Net cash provided by operating activities | 74,758 | 209,021 | 103,829 |
Cash flows from investing activities | |||
Operating lease assets initial direct costs | (4,093) | (2,104) | |
Capital expenditures | (16,035) | (37,990) | (29,205) |
Investment in unconsolidated affiliate | (9,951) | ||
Return of capital from unconsolidated affiliate | 1,470 | ||
Proceeds from sale of a retail store | 354 | ||
Net cash used in investing activities | (20,128) | (40,094) | (37,332) |
Cash flows from financing activities | |||
Repayment of borrowings - revolving facility | (1,291,424) | (2,388,766) | (2,315,935) |
Proceeds from borrowings - revolving facility | 1,291,424 | 2,388,766 | 2,303,932 |
Repayment of borrowings - unsecured term loan | (300,530) | (504) | |
Proceeds from borrowings - unsecured term loan | 8,883 | 3,362 | |
Proceeds from borrowings - senior secured notes | 400,000 | ||
Payment of financing costs | (13,551) | ||
Proceeds from exercise of equity awards | 297 | 115 | 101 |
Purchase of treasury shares | (35,216) | (20,311) | |
Taxes paid for net share settlements | (324) | (12,239) | (5,738) |
Net cash provided by (used in) financing activities | 94,775 | (44,482) | (37,951) |
Foreign currency translation adjustments | 5,157 | 2,789 | (4,184) |
Net increase (decrease) in cash and cash equivalents | 154,562 | 127,234 | 24,362 |
Cash and cash equivalents at beginning of year | 197,372 | 70,138 | 45,776 |
Cash and cash equivalents at end of year | 351,934 | 197,372 | 70,138 |
Cash payments: | |||
Interest, net | 16,418 | 34,311 | 35,807 |
Income tax payments, net | $ 1,971 | $ 39,020 | $ 44,045 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE A — SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: 1. Business Activity and Principles of Consolidation 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 under several product categories. The Company consolidates the accounts of all its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that was 49% owned by the Company through November 30, 2020. Effective December 1, 2020, the Company increased its ownership interest in Fabco to 75% (see Note P – Fabco) and Fabco is treated as a consolidated majority-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that is 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 year ended or ending closest to the Company’s fiscal year. For example, with respect to the Company’s results for the year ended January 31, 2021, the results of Vilebrequin, KLH, KLNA and Fabco are included for the year ended December 31, 2020. The Company’s retail operations segment reports results on a 52/53-week fiscal year. The Company’s years ended January 31, 2021, 2020 and 2019 were all 52-week fiscal years for the retail operations segment. For fiscal 2021, 2020 and 2019, the retail operations segment year end was January 30, 2021, February 1, 2020 and February 2, 2019, respectively. 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 COVID-19 pandemic resulted in a sharp decline in net sales in the first, second and, to a lesser extent, third and fourth quarters of fiscal 2021. It also resulted in the Company recognizing a net loss in the first and second quarters and a significant reduction in net income in the third and fourth quarters compared to prior years. The Company is focused on preserving its liquidity and managing its cash flow during these unprecedented conditions. The Company had 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, job eliminations, salary reductions, reductions in marketing and other discretionary spending, deferring certain lease payments and deferral of capital projects. During the quarter ended October 31, 2020, certain furloughed employees were reinstated and salaries that had been reduced were increased to their pre-pandemic levels. The Company has received royalty relief from certain licensors. As of January 31, 2021, the Company had cash and cash equivalents of $351.9 million and availability under its revolving credit facility in excess of $450.0 million. The Company believes it has adequate cash flows to meet the cash requirements of its business. As of January 31, 2021, the Company was in compliance with all covenants under its debt agreements. 2. Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. 3. Revenue Recognition Wholesale revenue is recognized when control transfers to the customer. The Company considers control to have been transferred when the Company has transferred physical possession of the product, the Company has a right to payment for the product, the customer has legal title to the product and the customer has the significant risks and rewards of the product. Wholesale revenues are adjusted by variable considerations arising from implicit or explicit obligations. Variable consideration includes trade discounts, end of season markdowns, sales allowances, cooperative advertising, return liabilities and other customer allowances. The Company estimates the anticipated variable consideration and records this estimate as a reduction of revenue in the period the related product revenue is recognized. Variable consideration is estimated based on historical experience, current contractual and statutory requirements, specific known events and industry trends. The reserves for variable consideration are recorded as customer refund liabilities. Historical return rates are calculated on a product line basis. The remainder of the historical rates for variable consideration are calculated by customer by product lines. The Company recognizes retail sales when the customer takes possession of the goods and tenders payment, generally at the point of sale. Digital revenues from customers through the Company’s digital platforms are recognized when the customer takes possession of the goods. The Company’s sales are recorded net of applicable sales taxes. Both wholesale revenues and retail store revenues are shown net of returns, discounts and other allowances. Licensing revenue is recognized at the higher of royalty earned or guaranteed minimum royalty. 4. Accounts Receivable In the normal course of business, the Company extends credit to its wholesale customers based on pre-defined credit criteria. Accounts receivable are net of an allowance for doubtful accounts. 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, extensive delay in payment or substantial downgrading by credit sources), 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 date of the financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. 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. 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. See Note D – Allowance For Doubtful Accounts. 5. Inventories Wholesale inventories are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value, which comprises a significant portion of the Company’s inventory. 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. 6. Goodwill and Other Intangibles Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations accounted for under the purchase method of accounting. Goodwill is subject to annual impairment tests using a qualitative evaluation or a quantitative test 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. Intangible assets deemed to have indefinite lives are not amortized, but are subject to annual impairment tests using a qualitative evaluation or a quantitative test 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. Other intangibles with finite lives, including license agreements, trademarks and customer lists are amortized on a straight-line basis over the estimated useful lives of the assets (currently ranging from 5 7. Leases On February 1, 2019, the Company adopted ASC Topic 842 – Leases The lease classification evaluation begins at the commencement date. The lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain or the failure to exercise such option would result in an economic penalty. All of the Company’s leases are classified as operating leases. 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, lease payment forgiveness, 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 January 31, 2021, the Company has $3.4 million of deferred lease payments recorded within accounts payable on its consolidated balance sheets. 8. Depreciation and Amortization Property and equipment are recorded at cost. Depreciation and amortization are computed by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the life of the lease or the useful life of the improvement, whichever is shorter. 9. Impairment of Long-Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. In fiscal 2021, the Company recorded a $20.1 million impairment charge related to the operating lease assets, leasehold improvements and furniture and fixtures at certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY and Vilebrequin stores as a result of the performance at these stores. In fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain of its Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. In fiscal 2019, the Company recorded a $2.8 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. 10. Income Taxes The Company accounts for income taxes and uncertain tax positions in accordance with ASC Topic 740 — Income Taxes ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a return, as well as guidance on de-recognition, classification, interest and penalties and financial statement reporting disclosures. It is also the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, or is required to pay amounts in excess of the liability, or when other facts and circumstances change, the Company's effective tax rate in a given financial statement period may be materially affected. The Tax Cuts and Jobs Act of 2017 (“TCJA”) provides for a reduced corporate income tax rate of 21% and requires that certain income earned by foreign subsidiaries, known as global intangible low-tax income (“GILTI”), must be included in the gross income of their U.S. shareholder. For fiscal 2021, the Company has elected to treat the tax effect of GILTI as a current period expense. For the current and future tax years, the Company expects other TCJA tax implications to be immaterial. The United States government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020, which includes various income tax provisions aimed at providing economic relief. One of those provisions allows any loss generated in 2020 to be carried back to each of the 5 taxable years preceding the taxable year of such a loss. The Company has elected to use this relief and will carry back the 2020 net operating loss to a tax year with a 35% federal rate. Additionally, the CARES Act permits Qualified Improvement Property to qualify for 15-year depreciation and therefore be also eligible for 100 percent first-year bonus depreciation. The Company has elected to take 100% bonus depreciation for all qualified improvement property. 11. Net Income Per Common Share Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share 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 182,000, 692,000 and 336,000 shares for the years ended January 31, 2021, 2020 and 2019, respectively, have been excluded from the diluted net income per share calculation. In addition, 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 Company issued 0, 8,851 and 168,179 shares of common stock in connection with the exercise or vesting of equity awards during the years ended January 31, 2021, 2020 and 2019, respectively. In addition, the Company re-issued 367,290, 619,651 and 150,809 treasury shares in connection with the vesting of equity awards in fiscal 2021, 2020 and 2019, respectively. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share: Year Ended January 31, 2021 2020 2019 (In thousands, except per share amounts) Net income attributable to G-III Apparel Group, Ltd. $ 23,545 $ 143,837 $ 138,067 Basic net income per share: Basic common shares 48,242 48,209 49,140 Basic net income per share $ 0.49 $ 2.98 $ 2.81 Diluted net income per share: Basic common shares 48,242 48,209 49,140 Dilutive restricted stock unit awards and stock options 539 686 1,134 Diluted common shares 48,781 48,895 50,274 Diluted net income per share $ 0.48 $ 2.94 $ 2.75 12. Equity Award Compensation ASC Topic 718, Compensation — Stock Compensation The Company accounts for forfeited awards as they occur as permitted by ASC 718. Ultimately, the actual expense recognized over the vesting period will be for those shares that vested. Restricted stock units (“RSU’s”) are time based awards that do not have market or performance conditions and generally (i) cliff vest after three years or (ii) vest over a three year period. Performance based restricted stock units (“PRSU’s”) granted to executives prior to fiscal 2020 include (i) market price performance conditions that provide for the award to vest only after the average closing price of the Company’s stock trades above a predetermined market level and (ii) another performance condition that requires the achievement of an operating performance target. PRSU’s generally vest over a two It is the Company’s policy to grant stock options at prices not less than the fair market value on the date of the grant. Option terms, vesting and exercise periods vary, except that the term of an option may not exceed ten years. Also, excess tax benefits arising from the lapse or exercise of an equity award are no longer recognized in additional paid-in capital. The assumed proceeds from applying the treasury stock method when computing net income per share is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. 13. Cost of Goods Sold Cost of goods sold includes the expenses incurred to acquire, produce and prepare inventory for sale, including product costs, warehouse staff wages, freight in, import costs, packaging materials, the cost of operating the overseas offices and royalty expense. Gross margins may not be directly comparable to those of the Company’s competitors, as income statement classifications of certain expenses may vary by company. Additionally, costs expected to be incurred when products are returned should be accrued for upon the sale of the product as a component of cost of goods sold. 14. Shipping and Handling Costs Shipping and handling costs consist of warehouse facility costs, third party warehousing, freight out costs, and warehouse supervisory wages and are included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $111.8 million, $138.8 million and $125.9 million for the years ended January 31, 2021, 2020 and 2019, respectively. 15. Advertising Costs The Company expenses advertising costs as incurred and includes these costs in selling, general and administrative expenses. Advertising paid as a percentage of sales under license agreements are expensed in the period in which the sales occur or are accrued to meet guaranteed minimum requirements under license agreements. Advertising expense was $55.3 million, $94.7 million and $87.8 million for the years ended January 31, 2021, 2020 and 2019, respectively. Prepaid advertising, which represents advance payments to licensors for minimum guaranteed payments for advertising under the Company’s licensing agreements, was $8.0 million and $8.7 million at January 31, 2021 and 2020, respectively. 16. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In determining these estimates, management must use amounts that are based upon its informed judgments and best estimates. The Company continually evaluates its estimates, including those related to customer allowances and discounts, product returns, bad debts, inventories, equity awards, income taxes, carrying values of intangible assets and long-lived assets including right of use assets. Estimates are based on historical experience and on various other assumptions that the Company believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. 17. Fair Value of Financial Instruments GAAP establishes 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 January 31, January 31, January 31, January 31, Financial Instrument Level 2021 2020 2021 2020 (In thousands) Secured Notes 2 $ 400,000 $ — $ 400,000 $ — Term loan 2 — 300,000 — 300,000 Note issued to LVMH 3 107,869 102,009 101,810 95,126 Unsecured loans 2 9,119 2,860 9,119 2,860 Overdraft facilities 2 3,007 — 3,007 — The Company’s debt instruments are recorded at their carrying values in its 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. On August 7, 2020, the Company refinanced its term loan and revolving credit facility. See Note I – Notes Payable and Other Liabilities. The 2% note in the principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKI was issued at a discount of $40.0 million in accordance with ASC 820 — Fair Value Measurements The fair value of the LVMH Note 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 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 fiscal 2021, the Company recorded a $20.1 million impairment charge primarily related to operating lease assets, leasehold improvements and furniture and fixtures at certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY and Vilebrequin stores as a result of the performance at these stores. During fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. In addition, during fiscal 2020, the Company recorded an impairment of $9.6 million, net of tax, in connection with the adoption of ASC 842 – Leases (“ASC 842”) that was recognized through retained earnings. 18. Foreign Currency Translation Certain of the Company’s international subsidiaries use different functional currencies, which are, for the most part, the local currency. In accordance with the authoritative guidance, assets and liabilities of the Company’s foreign operations 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. 19. Effects of Recently 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 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 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 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 consolidated financial statements. Accounting Guidance Issued 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 consolidated financial statements. |
Retail Restructuring
Retail Restructuring | 12 Months Ended |
Jan. 31, 2021 | |
Retail Restructuring [Abstract] | |
Retail Restructuring | NOTE B — RETAIL RESTRUCTURING In June 2020, the Company commenced the restructuring of its retail operations segment including the closing of the Wilsons Leather, G.H. Bass and Calvin Klein Performance stores. In connection with the restructuring of the retail operations segment, the Company incurred an aggregate charge of approximately $100 million related to store operating costs, 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’s cash portion of this charge was approximately $65 million. Restructuring charges are recorded within selling, general and administrative expenses in the Company’s consolidated statements of income and comprehensive income. The following is a reconciliation of the accrual for the period ended January 31, 2021: Severance and Benefit Costs Store Closing Costs Total (In thousands) Balance at January 31, 2020 $ — $ — $ — Amounts charged to expense 1,257 961 2,218 Cash payments (1,103) (280) (1,383) Balance at January 31, 2021 $ 154 $ 681 $ 835 The remaining severance and benefit costs and store closing costs are expected to be paid during the first two quarters of fiscal 2022. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jan. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE C REVENUE RECOGNITION On February 1, 2018, the Company adopted ASC 606 using the modified retrospective method as of January 31, 2018. The Company recognized a cumulative effect adjustment to the opening balance of stockholders’ equity at February 1, 2018 that reduced stockholders’ equity by $53.7 million, net of tax, as a result of the adoption of ASC 606. Wholesale revenue is recognized upon the transfer of goods to customers in an amount that reflects the expected consideration to be received in exchange for these goods. The difference between the amount initially billed and the amount collected represents variable consideration. Variable consideration includes trade discounts, end of season markdowns, sales allowances, cooperative advertising, return liabilities and other customer allowances. The Company estimates the anticipated variable consideration and records this estimate as a reduction of revenue in the period the related product revenue is recognized. The liability recorded in connection with variable consideration has been classified as a current liability under “Customer refund liabilities” in the Consolidated Balance Sheet. Additionally, the Company classifies cooperative advertising as a reduction of net sales in the Consolidated Statements of Income and Comprehensive Income. Costs expected to be incurred when products are returned should be accrued for upon the sale of the product as a component of cost of goods sold. Disaggregation of Revenue In accordance with ASC 606, the Company elected to disclose its revenues by segment. Each segment presents its own characteristics with respect to the timing of revenue recognition and the type of customer. In addition, disaggregating revenues using a segment basis is consistent with how the Company’s Chief Operating Decision Maker manages the Company. The Company identified the wholesale operations segment and the retail operations segment as distinct sources of revenue. Wholesale Operations Segment. Retail Operations Segment. Variable Consideration The Company identified the following elements of variable consideration: Markdowns Term Discounts. Sales Allowances Advertising Allowances Other Allowances Return of Merchandise Variable consideration is estimated based on historical experience, current contractual and statutory requirements, specific known events and industry trends. The reserves for variable consideration are recorded under customer refund liabilities. As of January 31, 2021 and 2020, customer refund liabilities amounted to $99.4 million and $233.4 million, respectively. Historical return rates are calculated on a product line basis. The remainder of the historical rates for variable consideration are calculated by customer by product lines. Contract Liabilities The Company’s contract liabilities, which are recorded within accrued expenses in the accompanying 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 $5.9 million at January 31, 2021 and 2020. The Company recognized $4.5 million in revenue for the year ended January 31, 2021 which related to contract liabilities that existed at January 31, 2020. There were no contract assets recorded as of January 31, 2021 and January 31, 2020. Substantially all of the advance payments from licenses as of January 31, 2021 are expected to be recognized as revenue within the next twelve months. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Jan. 31, 2021 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | NOTE D — 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. 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 January 31, 2021 were: January 31, 2021 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 509,010 $ 1,147 $ 510,157 Allowance for doubtful accounts (17,429) (30) (17,459) Accounts receivable, net $ 491,581 $ 1,117 $ 492,698 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 obligations (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 from that customer 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 at 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 year ended January 31, 2021, the Company recorded a $16.7 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 year ended January 31, 2021: January 31, 2021 Wholesale Retail Total (In thousands) Balance as of January 31, 2020 $ (628) $ (82) $ (710) Provision for credit losses (16,934) 52 (16,882) Accounts written off as uncollectible 133 — 133 Balance as of January 31, 2021 $ (17,429) $ (30) $ (17,459) |
Inventories
Inventories | 12 Months Ended |
Jan. 31, 2021 | |
Inventories [Abstract] | |
Inventories | NOTE E — 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 $22.5 million and $31.0 million at January 31, 2021 and 2020, respectively. The inventory return asset is recorded within prepaid expenses and other current assets as of January 31, 2021 and 2020. Inventory held on consignment by the Company’s customers totaled $3.5 million and $9.1 million at January 31, 2021 and 2020, respectively. Consignment inventory is stored at the facilities of the Company’s customers. The Company reflects this inventory on its consolidated balance sheets. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jan. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE F — PROPERTY AND EQUIPMENT Property and equipment consist of: January 31, Estimated life 2021 2020 (In thousands) Machinery and equipment 5 years $ 1,724 $ 1,867 Leasehold improvements 3 74,598 75,808 Furniture and fixtures 3 100,572 109,284 Computer equipment and software 2 40,255 41,040 217,149 227,999 Less: accumulated depreciation (160,085) (151,976) $ 57,064 $ 76,023 The Company wrote off fixed assets of $0.4 million and $5.4 million, net of accumulated depreciation, for the years ended January 31, 2021 and 2020. Depreciation expense was $34.0 million, $33.8 million and $33.9 million for the years ended January 31, 2021, 2020 and 2019, respectively. For the year ended January 31, 2021, the Company recorded a $0.8 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY stores as a result of the performance of these stores. For the year ended January 31, 2020, the Company recorded a $11.5 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance of these stores. For the year ended January 31, 2019, the Company recorded a $2.8 million impairment charge related to leasehold improvements and furniture and fixtures of certain Wilsons Leather, G.H. Bass and Vilebrequin stores as a result of the performance of these stores. The Company evaluates long-lived assets, which consist primarily of property and equipment and operating lease assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In the evaluation process, the Company first compares the carrying value of the asset to the estimated future cash flows (undiscounted and without interest charges plus proceeds expected from disposition, if any). If the estimated undiscounted cash flows are less than the carrying value of the asset, the Company needs to determine the fair value of the assets. The Company compares the carrying value of the asset or asset group to its estimated fair value. If the fair value is less than the carrying value, the Company recognizes an impairment charge. The carrying amount of the asset or asset group is reduced to the estimated fair value based on a discounted cash flow valuation. Assets to be disposed of are reported at the lower of the carrying amount of the asset or fair value less costs to sell. The Company reviews retail store assets for potential impairment based on historical cash flows, lease termination provisions and forecasted future retail store operating results. If the Company recognizes an impairment charge for a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis and will be depreciated (amortized) over the remaining useful life of that asset. |
Leases
Leases | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE G LEASES On February 1, 2019, the Company adopted ASC 842 using the optional transition method to apply the standard as of the effective date and, therefore, the standard has not been applied retroactively to the comparative periods presented in its financial statements. The Company has elected the transition package of three practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, the Company elected the short-term lease exception policy, permitting it to not apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of 12 months or less) and an accounting policy to account for lease and non-lease components as a single component. The Company determines whether an arrangement is, or contains, a lease at contract inception. The Company leases certain retail stores, warehouses, distribution centers, office space and 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. Total rent payable is recorded during the lease term, including rent escalations in which the amount of future rent is certain or fixed on the straight-line basis over the term of the lease (including any rent holiday periods beginning upon control of the premises and any fixed payments stated in the lease). For leases with an initial term greater than 12 months, a lease liability is recorded on the balance sheet at the present value of future payments discounted at the incremental borrowing rate (discount rate) corresponding with the lease term. An operating lease asset is recorded based on the initial amount of the lease liability, plus any lease payments made to the lessor before or at the lease commencement date and any initial direct costs incurred, less any tenant improvement allowance incentives received. The difference between the minimum rents paid and the straight-line rent (deferred rent) is reflected within the associated operating lease asset. The lease classification evaluation begins at the commencement date. The lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain or the failure to exercise such option would result in an economic penalty. All retail store, warehouse, distribution center and office leases are classified as operating leases. The Company does not have any finance leases. Operating lease expense is generally recognized on a straight-line basis over the lease term. Certain leases contain provisions that require contingent rent payments based upon sales volume (variable lease cost). Contingent rent is accrued each period as the liabilities are incurred. 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 January 31, 2021 and 2020 consist of the following: Leases Classification January 31, 2021 January 31, 2020 (In thousands) Assets Operating Operating lease assets $ 186,070 $ 270,032 Total lease assets $ 186,070 $ 270,032 Liabilities Current operating Current operating lease liabilities $ 43,560 $ 63,166 Noncurrent operating Noncurrent operating lease liabilities 161,668 249,040 Total lease liabilities $ 205,228 $ 312,206 The Company’s operating lease assets and operating lease liabilities significantly declined during fiscal 2021 due to the restructuring of the retail operations segment, partially offset by other leasing activity. As a result of this restructuring, the Company closed its Wilsons Leather, G.H. Bass and Calvin Klein Performance stores during fiscal 2021. In addition, during fiscal 2021 the Company recorded a $19.4 million impairment charge related to the operating lease assets at certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY and Vilebrequin stores as a result of the performance at these stores. During fiscal 2020, the Company recorded a $9.9 million impairment charge related to the operating lease assets at certain of our Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance of these stores. The Company determines the fair value of operating lease assets by discounting the estimated market rental rates over the remaining term of the lease. The Company’s leases do not provide the rate of interest implicit in the lease. Therefore, the Company uses its incremental borrowing rate based on the information available at commencement date of each lease in determining the present value of lease payments. For transition purposes, the incremental borrowing rate on February 1, 2019 was used for operating leases that commenced prior to that date. The Company recorded lease costs of $92.4 million and $98.4 million during the years ended January 31, 2021 and 2020, respectively. Lease costs are recorded within selling, general and administrative expenses in the Company’s consolidated statements of income and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $6.7 million and $16.8 million for the years ended January 31, 2021 and 2020, respectively. Short-term lease costs are immaterial. As of January 31, 2021, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2026 and thereafter are as follows: Year Ending January 31, Amount (In thousands) 2022 $ 58,045 2023 51,312 2024 38,408 2025 31,315 2026 24,837 After 2026 55,362 Total lease payments $ 259,279 Less: Interest 54,051 Present value of lease liabilities $ 205,228 As of January 31, 2021, there are no material leases that are legally binding but have not yet commenced. As of January 31, 2021, the weighted average remaining lease term related to operating leases is 5.7 years. The weighted average discount rate related to operating leases is 8.3%. Cash paid for amounts included in the measurement of operating lease liabilities is $108.9 million and $100.8 million as of January 31, 2021 and 2020, respectively. Right-of-use assets obtained in exchange for lease obligations were $56.6 million and $27.0 million during the years ended January 31, 2021 and 2020, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jan. 31, 2021 | |
Intangible Assets [Abstract] | |
Intangible Assets | NOTE H — INTANGIBLE ASSETS Intangible assets consist of: January 31, 2021 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,884 $ (16,959) $ 2,925 Trademarks 8 2,194 (2,194) — Customer relationships 15 48,430 (17,843) 30,587 Other 5 8,624 (7,077) 1,547 Total finite-lived intangible assets $ 79,132 $ (44,073) $ 35,059 Indefinite-lived intangible assets Goodwill 263,135 Trademarks 443,612 Total indefinite-lived intangible assets 706,747 Total intangible assets, net $ 741,806 January 31, 2020 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,258 $ (16,107) $ 3,151 Trademarks 8 2,194 (2,194) — Customer relationships 15 48,214 (14,831) 33,383 Other 5 7,757 (5,928) 1,829 Total finite-lived intangible assets $ 77,423 $ (39,060) $ 38,363 Indefinite-lived intangible assets Goodwill 260,622 Trademarks 438,658 Total indefinite-lived intangible assets 699,280 Total intangible assets, net $ 737,643 Amortization expense Amortization expense with respect to finite-lived intangibles amounted to $4.3 million, $4.5 million and $4.6 million for the years ended January 31, 2021, 2020 and 2019, respectively. The estimated amortization expense with respect to intangibles for the next five years is as follows: Year Ending January 31, Amortization Expense (In thousands) 2022 $ 3,643 2023 3,301 2024 3,074 2025 3,035 2026 3,028 Intangible assets with finite lives are amortized over their estimated useful lives and measured for impairment when events or circumstances indicate that the carrying value may be impaired. Change in Goodwill Changes in the amounts of goodwill for each of the years ended January 31, 2021 and 2020 are summarized by reportable segment as follows (in thousands): Wholesale Retail Total January 31, 2019 $ 261,137 — 261,137 Currency translation (515) — (515) January 31, 2020 260,622 — 260,622 Currency translation 2,513 — 2,513 January 31, 2021 $ 263,135 $ — $ 263,135 Impairment Goodwill represents the excess of the purchase price and related costs over the value assigned to net tangible and identifiable intangible assets of businesses acquired and accounted for under the purchase method. The Company reviews and tests its goodwill and intangible assets with indefinite lives for impairment at least annually, or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may be impaired. The Company performs its goodwill test as of January 31 of each year using a qualitative evaluation or a quantitative test 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 performs its annual test for intangible assets with indefinite lives as of January 31 of each year using a qualitative evaluation or a quantitative test 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. 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 Company also performed quantitative tests of each of its indefinite-lived intangible assets using a relief from royalty method. There were no impairments identified as of April 30, 2020 as a result of these tests. 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 future net sales, 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. |
NOTES PAYABLE AND OTHER LIABILI
NOTES PAYABLE AND OTHER LIABILITIES | 12 Months Ended |
Jan. 31, 2021 | |
Notes Payable and Other Liabilities [Abstract] | |
NOTES PAYABLE | NOTE I — NOTES PAYABLE AND OTHER LIABILITIES Long-term debt Long-term debt consists of the following: January 31, 2021 January 31, 2020 (in thousands) Secured Notes $ 400,000 $ — Term loan — 300,000 Revolving credit facility — — Note issued to LVMH 125,000 125,000 Unsecured loan 9,119 2,860 Overdraft facilities 3,007 — Subtotal 537,126 427,860 Less: Net debt issuance costs (1) (7,643) (7,402) Debt discount (17,131) (22,991) Current portion of long-term debt (4,402) (673) Total $ 507,950 $ 396,794 (1) Does not include the debt issuance costs, net of amortization, totaling $7.2 million and $4.6 million as of January 31, 2021 and 2020, respectively, related to the revolving credit facility. The debt issuance costs have been deferred and are classified in assets in the accompanying Consolidated Balance Sheets in accordance with ASC 835. Senior Secured Notes On August 7, 2020, the Company completed a private debt offering of $400 million aggregate principal amount of its 7.875% Senior Secured Notes due 2025 (the “Notes”). The terms of the Notes are governed by an indenture (the “Indenture”), among the Company, the guarantors party thereto and U.S. Bank, National Association, as trustee and collateral agent (the “Collateral Agent”). The net proceeds of the Notes have been used (i) to repay the Company’s prior term loan facility due 2022, (ii) to pay related fees and expenses and (iii) for general corporate purposes. The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2021. The Notes are unconditionally guaranteed on a senior-priority secured basis by the Company’s current and future wholly-owned domestic subsidiaries that guarantee any of the Company’s credit facilities, including the Company’s ABL facility (the “ABL Facility”) pursuant to the second amended and restated credit agreement (the “ABL Credit Agreement”), or certain future capital markets indebtedness of the Company or guarantors. The Notes and the related guarantees are secured by (i) first priority liens on the Company’s Cash Flow Priority Collateral (as defined in the Indenture), and (ii) a second-priority lien on the Company’s ABL Priority Collateral (as defined in the Indenture), in each case subject to permitted liens described in the Indenture. In connection with the issuance of the Notes and execution of the Indenture, the Company and the Guarantors entered into a pledge and security agreement (the “Pledge and Security Agreement”), among the Company, the Guarantors and the Collateral Agent. The Notes are subject to the terms of the intercreditor agreement which governs the relative rights of the secured parties in respect of the ABL Facility and the Notes (the “Intercreditor Agreement”). The Intercreditor Agreement restricts the actions permitted to be taken by the Collateral Agent with respect to the Collateral on behalf of the holders of the Notes. The Notes are also subject to the terms of the seller note subordination agreement which governs the relative rights of the secured parties in respect of the Seller Note (as defined therein), the ABL Facility and the Notes. At any time prior to August 15, 2022, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount of the Notes redeemed plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date plus a “make-whole” premium, as described in the Indenture. On or after August 15, 2022, the Company may redeem some or all of the Notes at any time and from time to time at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time prior to August 15, 2022, the Company may redeem up to 40% of the aggregate principal amount of the Notes with the proceeds of certain equity offerings at the redemption price set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. In addition, at any time prior to August 15, 2022, during any twelve month period, the Company may redeem up to 10% of the aggregate principal amount of the Notes at a redemption price equal to 103% of the principal amount of the Notes redeemed plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. If the Company experiences a Change of Control (as defined in the Indenture), the Company is required to offer to repurchase the Notes at 101% of the principal amount of such Notes plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase. The Indenture contains covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other restricted payments, make certain investments, incur restrictions on the ability of the Company’s restricted subsidiaries that are not guarantors to pay dividends or make certain other payments, create or incur certain liens, sell assets and subsidiary stock, impair the security interests, transfer all or substantially all of the Company’s assets or enter into merger or consolidation transactions, and enter into transactions with affiliates. The Indenture provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest, breach of other agreements in the Indenture, failure to pay certain other indebtedness, failure of certain guarantees to be enforceable, failure to perfect certain collateral securing the Notes failure to pay certain final judgments, and certain events of bankruptcy or insolvency. The Company incurred debt issuance costs totaling $8.5 million related to the Notes that will be amortized over the term of the Notes. In accordance with ASC 835, the debt issuance costs have been deferred and are presented as a contra-liability, offsetting the outstanding balance of the Notes, and are amortized over the remaining life of the Notes. Term Loan The Company had previously borrowed $350.0 million under a senior secured term loan facility (the “Term Loan”) that was scheduled to mature in December 2022. In fiscal 2017, 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. On August 7, 2020, the Company used a portion of the proceeds from the issuance of the Notes to repay the outstanding principal balance of $300.0 million under the Term Loan facility. At the date of repayment, the Company had unamortized debt issuance costs of $6.1 million associated with the Term Loan. These debt issuance costs were fully extinguished and charged to interest expense in the Company’s results of operations. Second Amended and Restated ABL Credit Agreement On August 7, 2020, the Company’s subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, AM Retail Group, Inc. and The Donna Karan Company Store LLC (collectively, the “Borrowers”), entered into the ABL Credit Agreement with the Lenders named therein and with JPMorgan Chase Bank, N.A., as Administrative Agent. The ABL Credit Agreement is a five year senior secured credit facility subject to a springing maturity date if, subject to certain conditions, the LVMH Note is not refinanced or repaid prior to the date that is 91 days prior to the date of any relevant payment thereunder. The ABL Credit Agreement provides for borrowings in the aggregate principal amount of up to $650 million. The Company and its subsidiaries, G-III Apparel Canada ULC, Gabrielle Studio, Inc., Donna Karan International Inc. and Donna Karan Studio LLC (the “Guarantors”), are Loan Guarantors under the ABL Credit Agreement The ABL Credit Agreement refinances, amends and restates the Amended Credit Agreement, dated as of December 1, 2016 (as amended, supplemented or otherwise modified from time to time prior to August 7, 2020, the “Prior Credit Agreement”), by and among the Borrowers and the Loan Guarantors (each as defined therein) party thereto, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., in its capacity as the administrative agent thereunder. The Prior Credit Agreement provided for borrowings of up to $650 million and was due to expire in December 2021. The ABL Credit Agreement extends the maturity date to August 2025, subject to a springing maturity date if, subject to certain conditions, the LVMH Note is not refinanced or repaid prior to the date that is 91 days prior to the date of any relevant payment thereunder. Amounts available under the ABL Credit Agreement are subject to borrowing base formulas and overadvances as specified in the ABL Credit Agreement. Borrowings bear interest, at the Borrowers’ option, at LIBOR plus a margin of 1.75% to 2.25% or an alternate base rate margin of 0.75% to 1.25% (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% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 1.00%, with the applicable margin determined based on Borrowers’ availability under the ABL Credit Agreement. The ABL Credit Agreement is secured by specified assets of the Borrowers and the Guarantors. In addition to paying interest on any outstanding borrowings under the ABL Credit Agreement, 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 tiered rate equal to 0.50% per annum on the average daily amount of the available commitments when the average usage is less than 50% of the total available commitments and decreases to 0.35% per annum on the average daily amount of the available commitments when the average usage is greater than or equal to 50% of the total available commitments. 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 January 31, 2021, the Company was in compliance with these covenants. As of January 31, 2021, the Company had no borrowings outstanding under the ABL Credit Agreement. As of January 31, 2021, interest under the ABL Credit Agreement was being paid at an average rate of 2.04% per annum. The ABL Credit Agreement also includes amounts available for letters of credit. As of January 31, 2021, there were outstanding trade and standby letters of credit amounting to $6.6 million and $3.9 million, respectively. At the date of the refinancing of the Prior Credit Agreement, the Company had $3.3 million of unamortized debt issuance costs remaining from the Prior Credit Agreement. The Company extinguished and charged to interest expense $0.4 million of the prior debt issuance costs and incurred new debt issuance costs totaling $5.1 million related to the ABL Credit Agreement. The Company has a total of $8.0 million debt issuance costs related to its ABL Credit Agreement. As permitted under ASC 835, the debt issuance costs have been deferred and are presented as an asset which is to be subsequently amortized ratably over the term of the ABL Credit Agreement. 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 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. In connection with the issuance of the LVMH Note, LVMH entered into (i) a subordination agreement providing that the Company’s obligations under the LVMH Note are subordinate and junior to the Company’s obligations under the revolving credit facility and the Term Loan, and (ii) a pledge and security agreement with the Company and its subsidiary, G-III Leather Fashions, Inc., pursuant to which the Company and G-III Leather Fashions, Inc. granted to LVMH a security interest in specified collateral to secure the Company’s payment and performance of the Company’s obligations under the LVMH Note that is subordinate and junior to the security interest granted by the Company with respect to the Company’s obligations under the revolving credit facility agreement and Term Loan. 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 During fiscal 2020 and fiscal 2021, T.R.B International SA (“TRB”), a subsidiary of Vilebrequin, borrowed funds under several unsecured loans. A portion of the unsecured loans were to provide funding for operations in the normal course of business, while other unsecured loans were various European state backed loans as part of COVID-19 relief programs. In the aggregate, TRB is currently required to make quarterly installment payments of €0.2 million under these loans. Interest on the outstanding principal amount of the unsecured loans accrues at a fixed rate equal to 0% to 2.0% per annum, payable on either a quarterly or monthly basis. Certain unsecured loans will require monthly installment payments beginning in fiscal 2022 and fiscal 2024. The unsecured loans have maturity dates ranging from September 15, 2024 through October 22, 2026. As of January 31, 2021, TRB had an aggregate outstanding balance of €7.4 million under these various unsecured loans. Overdraft Facilities During fiscal 2021, TRB entered into several overdraft facilities that allow for applicable bank accounts to be in a negative position up to a certain maximum overdraft. TRB entered into an uncommitted overdraft facility with HSBC Bank allowing for a maximum overdraft of €5 million. Interest on drawn balances accrues at a rate equal to the Euro Interbank Offered Rate plus a margin of 1.75% per annum, payable quarterly. The facility may be cancelled at any time by TRB or HSBC Bank. As part of a COVID-19 relief program, TRB and its subsidiaries have also entered into several state backed overdraft facilities with UBS Bank in Switzerland for an aggregate of CHF 4.7 million at varying interest rates of 0% to 0.5%. As of January 31, 2021, TRB had an aggregate of €2.5 million drawn under these various facilities. Future Debt Maturities As of January 31, 2021, the Company’s mandatory debt repayments mature in the years ending up to January 31, 2026 or thereafter. Year Ending January 31, Amount (In thousands) 2022 $ 4,402 2023 1,718 2024 126,822 2025 2,147 2026 and thereafter 402,037 Accrued expenses Accrued expenses consist of the following: January 31, 2021 January 31, 2020 (in thousands) Accrued bonuses $ 23,851 $ 40,980 Other accrued expenses 78,936 60,858 Total $ 102,787 $ 101,838 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE J — INCOME TAXES The income tax provision is comprised of the following: Year Ended January 31, 2021 2020 2019 (In thousands) Current Federal $ (15,828) $ 22,471 $ 23,463 State and city (491) 4,856 5,907 Foreign 3,803 10,615 10,989 (12,516) 37,942 40,359 Deferred Federal 22,770 8,250 4,419 State and city 3,364 315 191 Foreign (1,415) (8,246) 794 24,719 319 5,404 Income tax expense $ 12,203 $ 38,261 $ 45,763 Income before income taxes United States $ 37,727 $ 138,292 $ 137,748 Non-United States (2,001) 43,806 46,082 $ 35,726 $ 182,098 $ 183,830 The United States government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020, which includes various income tax provisions aimed at providing economic relief. One of those provisions allows any loss generated in 2020 to be carried back to each of the 5 taxable years preceding the taxable year of such a loss. The Company has elected to use this relief and will carry back the 2020 net operating loss to a tax year with a 35% federal rate. Additionally, the CARES Act permits Qualified Improvement Property to qualify for 15-year depreciation and therefore be also eligible for 100 percent first-year bonus depreciation. The Company has elected to take 100% bonus depreciation for all qualified improvement property. During the fourth quarter of fiscal 2020, the United States Treasury issued final regulations related to certain aspects of the TCJA. The tax implications of the final regulations were not material to the Company’s consolidated financial statements as the majority of the TCJA tax implications were recorded in fiscal years prior to the year ended January 31, 2021. Effective January 1, 2018, TCJA subjects a U.S. parent company to current tax on its GILTI. At January 31, 2021, there was no net tax impact to the Company for GILTI. The significant components of the Company’s net deferred tax asset at January 31, 2021 and 2020 are summarized as follows: 2021 2020 (In thousands) Deferred income tax assets: Compensation $ 2,673 $ 8,379 Inventory 6,780 4,498 Provision for bad debts and sales allowances 18,531 34,197 Supplemental employee retirement plan 584 511 Net operating loss 12,703 4,877 Operating lease liability 35,658 67,044 Foreign tax credit carryforward 4,962 — Other 3,792 1,148 Gross deferred income tax assets 85,683 120,654 Less: valuation allowance (13,272) (4,929) Net deferred income tax assets 72,411 115,725 Deferred income tax liabilities: Depreciation and amortization (41,185) (33,539) Intangibles (14,271) (13,602) Operating lease asset (30,182) (55,801) Prepaid expenses and other (2,028) (2,600) Total deferred income tax liabilities (87,666) (105,542) Net deferred tax (liabilities) assets $ (15,255) $ 10,183 The total undistributed earnings of the Company’s foreign subsidiaries are approximately $80.0 million for the fiscal year ended January 31, 2021. Upon distribution of those earnings in the form of dividends, the Company does not anticipate any material tax costs. As such, no deferred taxes have been provided for withholding taxes or other taxes that would result upon repatriation of undistributed foreign earnings. Those earnings are considered indefinitely reinvested. Even though the undistributed earnings can be distributed back generally without U.S. federal income tax as a result of the one-time transition tax under the TCJA regime, the Company does not expect to change its indefinite reinvestment categorization with respect to those earnings. The following is a reconciliation of the statutory federal income tax rate to the effective rate reported in the financial statements for the years ended January 31: 2021 2020 2019 Provision for Federal income taxes at the statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of Federal tax benefit (0.6) 1.9 2.4 Permanent differences resulting in Federal taxable income 12.8 5.9 6.6 Foreign tax rate differential (0.3) (3.8) 0.5 Share-based payments 12.5 (0.8) (0.6) Foreign tax credit (7.3) (3.5) (5.5) Valuation allowance 13.7 0.9 0.2 Net operating loss carryback (18.6) — — Other, net 1.0 (0.6) 0.3 Actual provision for income taxes 34.2 % 21.0 % 24.9 % The Company’s effective tax rate increased 13.2% percent in fiscal 2021 compared to fiscal 2020. This increase in the Company’s effective tax rate is primarily the result of the Company’s significant reduction in pretax book income in relation to its tax expense. The Company’s effective tax rate decreased 3.9% percent in fiscal 2020 as compared to fiscal 2019. The decrease in the tax rate is primarily attributable to the Swiss tax reform that was enacted in May 2019. Valuation allowances represent deferred tax benefits where management is uncertain if the Company will have the ability to recognize those benefits in the future. During the year ended January 31, 2021, the Company recorded an additional valuation allowance of $8.3 million against its deferred tax assets for its standalone state tax losses and foreign retail losses. Unrecognized Tax Benefits A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows: 2021 2020 2019 (In thousands) Balance at February 1, $ 2,111 $ — $ 82 Additions for tax positions of prior years 182 2,111 — Lapses of statues of limitations — — (82) Balance at January 31, $ 2,293 $ 2,111 $ — The Company accounts for uncertain income tax positions in accordance with ASC 740 — Income Taxes The Company’s policy on classification is to include interest in interest and financing charges, net and penalties in selling, general and administrative expenses in the accompanying Consolidated Statements of Income and Comprehensive Income. The Company and certain of its subsidiaries are subject to U.S. Federal income tax as well as the income tax of multiple state, local, and foreign jurisdictions. Of the major jurisdictions, the Company and its subsidiaries are subject to examination in the United States and various foreign jurisdictions for fiscal year 2014 and forward. The Company is currently under audit examination by New York, New Jersey and Canada for fiscal years 2014 through 2018. The Company believes that it is reasonably possible there will be no change to its unrecognized income tax position reserves during the next twelve months due to the applicable statues of limitations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE K — COMMITMENTS AND CONTINGENCIES License Agreements The Company has entered into license agreements that provide for royalty payments based on net sales of licensed products. The Company incurred royalty expense (included in cost of goods sold) of $116.8 million, $178.8 million and $165.7 million for the years ended January 31, 2021, 2020 and 2019, respectively. Contractual advertising expense, which is included in selling, general and administrative expenses and is normally based on a percentage of net sales associated with certain license agreements, was $29.5 million, $48.3 million and $46.2 million for the years ended January 31, 2021, 2020 and 2019, respectively. Based on minimum net sales requirements, future minimum royalty and advertising payments required under these agreements are: Year Ending January 31, Amount (In thousands) 2022 107,199 2023 91,225 2024 89,474 2025 31,540 2026 25,618 Thereafter — $ 345,056 Legal Proceedings In the ordinary course of business, the Company is subject to periodic claims, investigations and lawsuits. Although the Company cannot predict with certainty the ultimate resolution of claims, investigations and lawsuits, asserted against the Company, it does not believe that any currently pending legal proceeding or proceedings to which it is a party could have a material adverse effect on its business, financial condition or results of operations. 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 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 under 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 during the year ended January 31, 2021 related to the higher dutiable values, however, the Company paid interest in the amount of CAD$1.0 million ($0.8 million) on the additional duties for the period January 15, 2018 through November 25, 2020, the date of the CBSA’s final decision as discussed below. Cumulative amounts paid and deferred through January 31, 2021, related to the higher dutiable values, were CAD$14.4 million ($11.6 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. The CBSA has issued its final decision denying the appeal filed by G-III Canada with the President’s Office of the CBSA. G-III Canada has filed a Notice of Appeal with the Canadian International Trade Tribunal (the “Tribunal”) further appealing the CBSA decision. The Tribunal has confirmed receipt of the Notice of Appeal. The deadline for filing the case brief and evidence is April 13, 2021 and a hearing date has been set for August 10, 2021. G-III Canada, based on the advice of counsel, believes it has positions that support its valuations for duty as declared and therefore 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. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | NOTE L — STOCKHOLDERS’ EQUITY Share Repurchase Program The Company’s Board of Directors has authorized a share repurchase program of 5,000,000 shares. The timing and actual number of shares repurchased, if any, will depend on a number of factors, including market conditions and prevailing stock prices, and are subject to compliance with certain covenants contained in the loan agreement. Share repurchases may take place on the open market, in privately negotiated transactions or by other means, and would be made in accordance with applicable securities laws. No shares of common stock were acquired pursuant to this program during fiscal 2021. During fiscal 2020, pursuant to this program, the Company acquired 1,327,566 of its shares of common stock for an aggregate purchase price of $35.2 million. During fiscal 2019, the Company acquired 723,072 of its shares of common stock for an aggregate purchase price of $20.3 million. Long-Term Incentive Plan As of January 31, 2021, the Company had 1,811,490 shares available for grant under its long-term incentive plan. The plan provides for the grant of equity and cash awards, including restricted stock awards, stock options and other stock unit awards to directors, officers and employees. RSU’s generally (i) cliff vest after three years or (ii) vest over a three year period. PRSU’s granted to executives prior to fiscal 2020 include (i) market price performance conditions that provide for the award to vest only after the average closing price of the Company’s stock trades above a predetermined market level and (ii) another performance condition that requires the achievement of an operating performance target. PSU’s granted to executives in fiscal 2020 vest after a three year performance period during which certain earnings before interest and taxes and return on invested capital performance standards must be satisfied for vesting to occur. PSU’s are also subject to a lock up period that prevents the sale, contract to sell or transfer of shares for two years subsequent to the date of vesting. It is the Company’s policy to grant stock options at prices not less than the fair market value on the date of the grant. Option terms, vesting and exercise periods vary, except that the term of an option may not exceed ten years. Restricted Stock Units and Performance Based Restricted Stock Units Restricted Stock Units Performance Based Restricted Stock Units Weighted Average Weighted Average Awards Grant Date Awards Grant Date Outstanding Fair Value Outstanding Fair Value Unvested as of January 31, 2018 327,014 $ 30.59 1,445,563 $ 29.26 Granted 137,723 $ 38.32 391,530 $ 30.23 Vested (159,663) $ 30.38 (292,266) $ 25.91 Cancelled (23,249) $ 29.69 (5,033) $ 27.10 Unvested as of January 31, 2019 281,825 $ 34.56 1,539,794 $ 30.15 Granted 142,594 $ 37.74 332,651 $ 35.77 Vested (168,781) $ 32.32 (810,655) $ 24.58 Cancelled (12,695) $ 35.09 (3,080) $ 42.41 Unvested as of January 31, 2020 242,943 $ 37.95 1,058,710 $ 36.15 Granted 1,280,664 $ 10.25 — $ — Vested (107,917) $ 37.96 (279,053) $ 32.43 Cancelled (22,422) $ 39.41 (312,827) $ 42.41 Unvested as of January 31, 2021 1,393,268 $ 12.47 466,830 $ 34.17 Restricted Stock Units Restricted stock units (“RSU’s”) are time based awards that do not have market or performance conditions and (i) cliff vest after three years or (ii) vest over a three year period. The grant date fair value for RSU’s are based on the quoted market price on the date of grant. Compensation expense for RSU’s is recognized in the consolidated financial statements on a straight-line basis over the service period based on their grant date fair value. Performance Based Restricted Stock Units Performance based restricted stock units consist of both performance based restricted stock units (“PRSU’s”) and performance stock units (“PSU’s”). PRSU’s were granted to executives prior to fiscal 2020 and included (i) market price performance conditions that provide for the award to vest only after the average closing price of the Company’s stock trades above a predetermined market level and (ii) another performance condition that requires the achievement of an operating performance target. PRSU’s generally vest over a two PSU’s were granted to executives in fiscal 2020 and vest after a three year performance period during which certain earnings before interest and taxes and return on invested capital performance standards must be satisfied for vesting to occur. PSU’s are also subject to a lock up period that prevents the sale, contract to sell or transfer shares for two years subsequent to the date of vesting. PSU’s are expensed over the service period under the requisite acceleration method and based on an estimated percentage of achievement of certain pre-established goals. The Company accounts for forfeited awards as they occur as permitted by ASC 718. Ultimately, the actual expense recognized over the vesting period will be for those shares that vest. The Company recognized $6.1 million, $17.6 million and $19.7 million in share-based compensation expense for the years ended January 31, 2021, 2020 and 2019, respectively, related to restricted stock unit grants. At January 31, 2021, 2020 and 2019, unrecognized costs related to the restricted stock units totaled $12.9 million, $18.7 million and $19.4 million, respectively. The total fair value of awards for which restrictions lapsed was $5.0 million, $31.0 million and $17.5 million as of January 31, 2021, 2020 and 2019, respectively. Stock Options 2021 2020 2019 Weighted Weighted Weighted Average Average Average Shares Exercise Shares Exercise Shares Exercise Stock options outstanding at beginning of year 39,311 $ 18.51 55,311 $ 15.70 62,666 $ 11.50 Exercised (21,066) $ 14.07 (13,200) $ 8.71 (15,600) $ 6.55 Granted — $ — — $ — 8,245 $ 30.32 Cancelled or forfeited — $ — (2,800) $ 9.20 — $ — Stock options outstanding at end of year 18,245 $ 23.63 39,311 $ 18.51 55,311 $ 15.70 Exercisable 18,245 $ 23.63 35,188 $ 17.12 47,066 $ 13.14 The following table summarizes information about stock options outstanding: Number Weighted Weighted Number Weighted Outstanding as of Average Average Exercisable as of Average January 31, Remaining Exercise January 31, Exercise Range of Exercise Prices 2021 Contractual Life Price 2021 Price $18.11 - $30.32 18,245 1.50 $ 23.63 18,245 $ 23.63 18,245 18,245 Stock Options Compensation expense for employee stock options is recognized in the consolidated financial statements over the service period (generally the vesting period) based on their fair value. Stock options are valued using the Black-Scholes option pricing model. The Black-Scholes model requires subjective assumptions regarding dividend yields, expected volatility, expected life of options and risk-free interest rates. These assumptions reflect management’s best estimates. Changes in these inputs and assumptions can materially affect the estimate of fair value and the amount of our compensation expenses for stock options. No stock options were granted during the years ended January 31, 2021 and January 31, 2020. The Company granted 8,245 stock options during the year ended January 31, 2019. The Company accounts for forfeited awards as they occur as permitted by ASC 718. Ultimately, the actual expense recognized over the vesting period will be for those shares that vest. The weighted average remaining term for stock options outstanding was 1.5 years at January 31, 2021. The aggregate intrinsic value at January 31, 2021 was $0.1 million for stock options outstanding and $0.1 million for stock options exercisable. The intrinsic value for stock options is calculated based on the exercise price of the underlying awards and the market price of the Company’s common stock as of January 31, 2021, the reporting date. Proceeds received from the exercise of stock options were $0.3 million and $0.1 million during the years ended January 31, 2021 and 2020, respectively. The intrinsic value of stock options exercised was $0.1 million and $0.3 million for the years ended January 31, 2021 and 2020, respectively. A portion of this amount is currently deductible for tax purposes. The Company recognized $0.1 million and $0.1 million in compensation expense for the years ended January 31, 2021 and 2020, respectively, related to stock options. The Company recognized a nominal |
CONCENTRATION
CONCENTRATION | 12 Months Ended |
Jan. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION | NOTE M — CONCENTRATION Two customers in the wholesale operations segment accounted for approximately 20.9% and 12.9%, respectively, of the Company’s net sales for the year ended January 31, 2021. Two customers accounted for 26.3% and 13.2% of the Company’s net sales for the year ended January 31, 2020. Two customers accounted for 24.8% and 12.4% of the Company’s net sales for the year ended January 31, 2019. Four customers in the wholesale operations segment accounted for approximately 19.8%, 19.5%, 15.1% and 10.1%, respectively, of the Company’s net accounts receivable as of January 31, 2021. Three customers in the wholesale operations segment accounted for approximately 25.7%, 17.0% and 10.0%, respectively, of the Company’s net accounts receivable as of January 31, 2020. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jan. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE N — EMPLOYEE BENEFIT PLANS The Company maintains a 401(k) plan (the “GIII Plan”) and trust for non-union employees. The Plan provides for a Safe Harbor (non-discretionary) matching contribution of 100% of the first 3% of the participant’s contributed pay plus 50% of the next 2% of the participant’s contributed pay. The Company made matching contributions of $1.5 million, $4.7 million and $3.8 million for the years ended January 31, 2021, 2020 and 2019, respectively. Effective May 2020, the Company temporarily suspended 401(k) matching contributions due to the COVID-19 pandemic. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Jan. 31, 2021 | |
Segments [Abstract] | |
SEGMENTS | NOTE O — 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, which, prior to the completion of the retail restructuring in fiscal 2021, consisted primarily of Wilsons Leather, G.H. Bass, DKNY and Karl Lagerfeld Paris stores, substantially all of which are operated as outlet stores. Sales through the Company’s owned digital channels, with the exception of Vilebrequin, are also included in the retail operations segment. As a result of the restructuring of the Company’s retail operations, the Company closed its Wilsons Leather and G.H. Bass retail stores during fiscal 2021. After completion of the restructuring, the Company’s retail operations segment consists of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, G.H Bass, Andrew Marc and Wilsons Leather. The following segment information, in thousands, is presented for the fiscal years ended: January 31, 2021 Wholesale Retail Elimination (1) Total Net sales $ 1,916,763 170,421 (32,038) $ 2,055,146 Cost of goods sold 1,229,548 113,194 (32,038) 1,310,704 Gross profit 687,215 57,227 — 744,442 Selling, general and administrative expenses 444,549 160,553 — 605,102 Depreciation and amortization 31,998 6,627 — 38,625 Asset impairments, net of gain on lease terminations 1,010 16,863 — 17,873 Operating profit (loss) $ 209,658 $ (126,816) $ — $ 82,842 January 31, 2020 Wholesale Retail Elimination (1) Total Net sales $ 2,862,889 $ 385,910 $ (88,335) $ 3,160,464 Cost of goods sold 1,925,062 205,797 (88,335) 2,042,524 Gross profit 937,827 180,113 — 1,117,940 Selling, general and administrative expenses 604,377 227,803 — 832,180 Depreciation and amortization 30,806 7,929 — 38,735 Asset impairments 412 18,959 — 19,371 Operating profit (loss) $ 302,232 $ (74,578) $ — $ 227,654 January 31, 2019 Wholesale Retail Elimination (1) Total Net sales $ 2,716,958 $ 476,764 $ (117,514) $ 3,076,208 Cost of goods sold 1,837,335 249,278 (117,514) 1,969,099 Gross profit 879,623 227,486 — 1,107,109 Selling, general and administrative expenses 570,290 264,473 — 834,763 Depreciation and amortization 29,644 9,175 — 38,819 Asset impairments — 2,813 — 2,813 Operating profit (loss) $ 279,689 $ (48,975) $ — $ 230,714 (1) Represents intersegment sales to the Company’s retail operations segment . The Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels, and relative sales levels, among other factors. The method of allocation has been applied consistently on a year-to-year basis. The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: January 31, January 31, 2021 2020 (In thousands) Wholesale $ 1,844,682 $ 1,912,175 Retail 85,625 272,832 Corporate 506,079 380,130 Total Assets $ 2,436,386 $ 2,565,137 The total net sales and long-lived assets by geographic region are as follows: 2021 2020 2019 Long-Lived Long-Lived Long-Lived Geographic Region Net Sales Assets Net Sales Assets Net Sales Assets United States $ 1,755,791 $ 834,181 $ 2,774,492 $ 964,476 $ 2,656,479 $ 762,444 Non-United States 299,355 258,165 385,972 231,973 419,729 191,719 $ 2,055,146 $ 1,092,346 $ 3,160,464 $ 1,196,449 $ 3,076,208 $ 954,163 Capital expenditures for locations outside of the United States totaled $3.0 million, $4.6 million and $4.3 million for the years ended January 31, 2021, 2020 and 2019, respectively. |
Fabco Holding B.V.
Fabco Holding B.V. | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
FABCO HOLDING B.V. | NOTE P — FABCO HOLDING B.V. In August 2017, the Company entered into a joint venture agreement with Amlon Capital B.V. (“Amlon”), a private company incorporated in the Netherlands, to produce and market women’s and men’s apparel and accessories pursuant to a long-term license for DKNY and Donna Karan in the People’s Republic of China, including Macau, Hong Kong and Taiwan. The Company owned 49% of the joint venture through November 30, 2020, with Amlon owning the remaining 51%. During the fourth quarter of fiscal 2021, the Company acquired an additional ownership interest for nominal consideration that increased its ownership interest in Fabco to 75% effective December 1, 2020, with Amlon owning the remaining 25% (the “Fabco Acquisition”). The joint venture was funded with $25 million of equity to be used to strengthen the DKNY and Donna Karan brands and accelerate the growth of the business in the region. Of this amount, the Company contributed an aggregate $10.0 million. Beginning January 1, 2018, this joint venture is the exclusive seller of women’s and men’s apparel, handbags, luggage and certain accessories under the DKNY and Donna Karan brands in the territory. Fabco is accounted for as a consolidated majority-owned subsidiary on the consolidated financial statements as of January 31, 2021. The investment in Fabco was previously accounted for under the equity method of accounting on the consolidated balance sheets at January 31, 2020. On the effective date of the Fabco Acquisition, the previously held investment was remeasured at fair value and a $1.0 million gain was recorded. The Fabco Acquisition was accounted for under the acquisition method of accounting. Accordingly, the purchase price was allocated to the acquired assets based on their estimated fair values. In connection with the acquisition, during the year ended January 31, 2021, the Company recorded a $1.7 million pretax bargain purchase gain. The Company was able to realize a gain because Fabco was in need of capital to continue its operations and was unable to secure sufficient capital in the time frame it required. The Company has assessed the identification of and valuation assumptions surrounding the assets acquired and the consideration transferred and has determined that the recognition of a bargain purchase gain is appropriate. The operating results for Fabco are included in the Company’s consolidated financial statements from the effective date of the Fabco Acquisition. The noncontrolling interest is classified as temporary equity in the mezzanine section of the balance sheet between liabilities and permanent equity. The temporary equity designation is due to a put feature that is outside of the Company’s control. |
EQUITY INVESTMENT
EQUITY INVESTMENT | 12 Months Ended |
Jan. 31, 2021 | |
EQUITY INVESTMENT | |
EQUITY INVESTMENT | NOTE Q — EQUITY INVESTMENTS Investment in Karl Lagerfeld Holding B.V. In February 2016, the Company acquired a 19% minority interest in KLH, the parent company of the group that holds the worldwide rights to the Karl Lagerfeld brand. The Company paid 32.5€ million (equal to $35.4 million at the date of the transaction) for this interest. This investment was intended to expand the partnership between the Company and the owners of Karl Lagerfeld brand and extend their business development opportunities on a global scale. The investment in KLH, which is being accounted for under the equity method of accounting, is reflected in Investment in Unconsolidated Affiliates on the Consolidated Balance Sheets at January 31, 2021 and 2020. Investment in KL North America In June 2015, the Company entered into a joint venture agreement with Karl Lagerfeld Group BV (“KLBV”). The Company paid KLBV $25.0 million for a 49% ownership interest in KLNA. KLNA holds brand rights to all Karl Lagerfeld trademarks, including the Karl Lagerfeld Paris brand the Company currently uses, for all consumer products (except eyewear, fragrance, cosmetics, watches, jewelry, and hospitality services) and apparel in the United States, Canada and Mexico. The investment in KLNA, which is being accounted for under the equity method of accounting, is reflected in Investment in Unconsolidated Affiliates on the Consolidated Balance Sheets at January 31, 2021 and 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jan. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE R — RELATED PARTY TRANSACTIONS Transactions with Fabco Prior to December 1, 2020, G-III owned a 49% ownership interest in Fabco and was considered a related party of Fabco (see Note N). The Company sells inventory to Fabco and granted Fabco’s subsidiary the right to use certain Donna Karan and DKNY trademarks. In fiscal 2021 and 2020, the Company sold $2.7 million and $4.4 million in inventory to Fabco, respectively. The Company recorded $0.9 million of licensing revenue from Fabco during the period of the year prior to Fabco becoming a consolidated majority-owned subsidiary of the Company. The Company recorded $3.1 million and $2.2 million of licensing revenue from Fabco during the years ended January 31, 2020 and 2019, respectively. As of January 31, 2020, Fabco prepaid $0.5 million to the Company for minimum royalties and marketing fees relating to the first quarter of 2020 and has a $0.1 million payable balance relating to inventory purchased from the Company and its subsidiaries. Transactions with KL North America G-III owns a 49% ownership interest in KLNA and is considered a related party of KLNA (see Note Q). The Company entered into a licensing agreement to use the brand rights to certain Karl Lagerfeld trademarks held by KLNA. The Company incurred royalty and advertising expense of $3.5 million, $6.8 million and $6.4 million for the years ended January 31, 2021, 2020 and 2019, respectively. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE S — QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for the fiscal years ended January 31, 2021 and 2020 are as follows (in thousands, except per share amounts): Quarter Ended April 30, July 31, October 31, January 31, 2020 2020 (1) 2020 2021 (2) Net sales $ 405,131 $ 297,212 $ 826,561 $ 526,242 Gross profit 124,401 134,693 297,755 187,593 Net income attributable to G-III Apparel Group, Ltd. (39,295) (14,976) 63,174 14,642 Net income attributable to G-III Apparel Group, Ltd. per common share Basic $ (0.82) $ (0.31) $ 1.31 $ 0.30 Diluted $ (0.82) $ (0.31) $ 1.29 $ 0.30 Quarter Ended April 30, July 31, October 31, January 31, 2019 2019 2019 2020 (3) Net sales $ 633,552 $ 643,892 $ 1,128,403 $ 754,617 Gross profit 236,064 231,769 399,019 251,088 Net income 12,043 11,119 95,387 25,288 Net income per common share Basic $ 0.25 $ 0.23 $ 2.00 $ 0.53 Diluted $ 0.24 $ 0.23 $ 1.97 $ 0.52 (1) During the second quarter of fiscal 2021, the Company recorded a $19.8 million impairment charge primarily related to operating lease assets, leasehold improvements, furniture and fixtures and store related intangible assets at certain Wilsons Leather and G.H. Bass stores primarily due to the retail restructuring, and certain DKNY and Vilebrequin stores as a result of the performance at these stores. (2) During the fourth quarter of fiscal 2021, the Company recorded a $0.7 million impairment charge primarily related to operating lease assets, leasehold improvements, furniture and fixtures and store related intangible assets at certain DKNY and Vilebrequin stores as a result of the performance at these stores. (3) During the fourth quarter of fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNT | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years ended January 31, 2021, 2020 and 2019 Balance at ASC 606 Charges to Balance at Beginning Transition Cost and End of Description of Period Adjustment Expenses Deductions (1) Period (In thousands) Year ended January 31, 2021 Deducted from asset accounts Allowance for doubtful accounts $ 710 $ — $ 16,882 $ 133 $ 17,459 Reserve for returns 46,489 — 41,348 47,133 40,704 Reserve for sales allowances (2) 186,929 — 101,337 229,615 58,651 $ 234,128 $ — $ 159,567 $ 276,881 $ 116,814 Year ended January 31, 2020 Deducted from asset accounts Allowance for doubtful accounts $ 924 $ — $ (72) $ 142 $ 710 Reserve for returns 62,278 — 56,440 72,229 46,489 Reserve for sales allowances (2) 181,312 — 422,628 417,011 186,929 $ 244,514 $ — $ 478,996 $ 489,382 $ 234,128 Year ended January 31, 2019 Allowance for doubtful accounts $ 2,093 $ — $ (140) $ 1,029 $ 924 Reserve for returns 61,179 — 57,777 56,678 62,278 Reserve for sales allowances (2) 102,144 66,617 375,118 362,567 181,312 $ 165,416 $ 66,617 $ 432,755 $ 420,274 $ 244,514 (1) Accounts written off as uncollectible, net of recoveries. (2) See Note A in the accompanying Notes to Consolidated Financial Statements for a description of sales allowances. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
Business Activity and Principles of Consolidation | 1. Business Activity and Principles of Consolidation 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 under several product categories. The Company consolidates the accounts of all its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that was 49% owned by the Company through November 30, 2020. Effective December 1, 2020, the Company increased its ownership interest in Fabco to 75% (see Note P – Fabco) and Fabco is treated as a consolidated majority-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that is 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 year ended or ending closest to the Company’s fiscal year. For example, with respect to the Company’s results for the year ended January 31, 2021, the results of Vilebrequin, KLH, KLNA and Fabco are included for the year ended December 31, 2020. The Company’s retail operations segment reports results on a 52/53-week fiscal year. The Company’s years ended January 31, 2021, 2020 and 2019 were all 52-week fiscal years for the retail operations segment. For fiscal 2021, 2020 and 2019, the retail operations segment year end was January 30, 2021, February 1, 2020 and February 2, 2019, respectively. 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 COVID-19 pandemic resulted in a sharp decline in net sales in the first, second and, to a lesser extent, third and fourth quarters of fiscal 2021. It also resulted in the Company recognizing a net loss in the first and second quarters and a significant reduction in net income in the third and fourth quarters compared to prior years. The Company is focused on preserving its liquidity and managing its cash flow during these unprecedented conditions. The Company had 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, job eliminations, salary reductions, reductions in marketing and other discretionary spending, deferring certain lease payments and deferral of capital projects. During the quarter ended October 31, 2020, certain furloughed employees were reinstated and salaries that had been reduced were increased to their pre-pandemic levels. The Company has received royalty relief from certain licensors. As of January 31, 2021, the Company had cash and cash equivalents of $351.9 million and availability under its revolving credit facility in excess of $450.0 million. The Company believes it has adequate cash flows to meet the cash requirements of its business. As of January 31, 2021, the Company was in compliance with all covenants under its debt agreements. |
Cash Equivalents | 2. Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. |
Revenue Recognition | 3. Revenue Recognition Wholesale revenue is recognized when control transfers to the customer. The Company considers control to have been transferred when the Company has transferred physical possession of the product, the Company has a right to payment for the product, the customer has legal title to the product and the customer has the significant risks and rewards of the product. Wholesale revenues are adjusted by variable considerations arising from implicit or explicit obligations. Variable consideration includes trade discounts, end of season markdowns, sales allowances, cooperative advertising, return liabilities and other customer allowances. The Company estimates the anticipated variable consideration and records this estimate as a reduction of revenue in the period the related product revenue is recognized. Variable consideration is estimated based on historical experience, current contractual and statutory requirements, specific known events and industry trends. The reserves for variable consideration are recorded as customer refund liabilities. Historical return rates are calculated on a product line basis. The remainder of the historical rates for variable consideration are calculated by customer by product lines. The Company recognizes retail sales when the customer takes possession of the goods and tenders payment, generally at the point of sale. Digital revenues from customers through the Company’s digital platforms are recognized when the customer takes possession of the goods. The Company’s sales are recorded net of applicable sales taxes. Both wholesale revenues and retail store revenues are shown net of returns, discounts and other allowances. Licensing revenue is recognized at the higher of royalty earned or guaranteed minimum royalty. |
Accounts Receivable | 4. Accounts Receivable In the normal course of business, the Company extends credit to its wholesale customers based on pre-defined credit criteria. Accounts receivable are net of an allowance for doubtful accounts. 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, extensive delay in payment or substantial downgrading by credit sources), 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 date of the financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. 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. 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. See Note D – Allowance For Doubtful Accounts. |
Inventories | 5. Inventories Wholesale inventories are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value, which comprises a significant portion of the Company’s inventory. 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. |
Goodwill and Other Intangibles | 6. Goodwill and Other Intangibles Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations accounted for under the purchase method of accounting. Goodwill is subject to annual impairment tests using a qualitative evaluation or a quantitative test 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. Intangible assets deemed to have indefinite lives are not amortized, but are subject to annual impairment tests using a qualitative evaluation or a quantitative test 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. Other intangibles with finite lives, including license agreements, trademarks and customer lists are amortized on a straight-line basis over the estimated useful lives of the assets (currently ranging from 5 |
Leases | 7. Leases On February 1, 2019, the Company adopted ASC Topic 842 – Leases The lease classification evaluation begins at the commencement date. The lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonably certain or the failure to exercise such option would result in an economic penalty. All of the Company’s leases are classified as operating leases. 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, lease payment forgiveness, 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 January 31, 2021, the Company has $3.4 million of deferred lease payments recorded within accounts payable on its consolidated balance sheets. |
Depreciation and amortization | 8. Depreciation and Amortization Property and equipment are recorded at cost. Depreciation and amortization are computed by the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the life of the lease or the useful life of the improvement, whichever is shorter. |
Impairment of Long-Lived Assets | 9. Impairment of Long-Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. In fiscal 2021, the Company recorded a $20.1 million impairment charge related to the operating lease assets, leasehold improvements and furniture and fixtures at certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY and Vilebrequin stores as a result of the performance at these stores. In fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain of its Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. In fiscal 2019, the Company recorded a $2.8 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. |
Income Taxes | 10. Income Taxes The Company accounts for income taxes and uncertain tax positions in accordance with ASC Topic 740 — Income Taxes ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a return, as well as guidance on de-recognition, classification, interest and penalties and financial statement reporting disclosures. It is also the Company's policy to provide for uncertain tax positions and the related interest and penalties based upon management's assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. To the extent the Company prevails in matters for which a liability for an unrecognized tax benefit is established, or is required to pay amounts in excess of the liability, or when other facts and circumstances change, the Company's effective tax rate in a given financial statement period may be materially affected. The Tax Cuts and Jobs Act of 2017 (“TCJA”) provides for a reduced corporate income tax rate of 21% and requires that certain income earned by foreign subsidiaries, known as global intangible low-tax income (“GILTI”), must be included in the gross income of their U.S. shareholder. For fiscal 2021, the Company has elected to treat the tax effect of GILTI as a current period expense. For the current and future tax years, the Company expects other TCJA tax implications to be immaterial. The United States government enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020, which includes various income tax provisions aimed at providing economic relief. One of those provisions allows any loss generated in 2020 to be carried back to each of the 5 taxable years preceding the taxable year of such a loss. The Company has elected to use this relief and will carry back the 2020 net operating loss to a tax year with a 35% federal rate. Additionally, the CARES Act permits Qualified Improvement Property to qualify for 15-year depreciation and therefore be also eligible for 100 percent first-year bonus depreciation. The Company has elected to take 100% bonus depreciation for all qualified improvement property. |
Net Income Per Common Share | 11. Net Income Per Common Share Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share 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 182,000, 692,000 and 336,000 shares for the years ended January 31, 2021, 2020 and 2019, respectively, have been excluded from the diluted net income per share calculation. In addition, 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 Company issued 0, 8,851 and 168,179 shares of common stock in connection with the exercise or vesting of equity awards during the years ended January 31, 2021, 2020 and 2019, respectively. In addition, the Company re-issued 367,290, 619,651 and 150,809 treasury shares in connection with the vesting of equity awards in fiscal 2021, 2020 and 2019, respectively. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share: Year Ended January 31, 2021 2020 2019 (In thousands, except per share amounts) Net income attributable to G-III Apparel Group, Ltd. $ 23,545 $ 143,837 $ 138,067 Basic net income per share: Basic common shares 48,242 48,209 49,140 Basic net income per share $ 0.49 $ 2.98 $ 2.81 Diluted net income per share: Basic common shares 48,242 48,209 49,140 Dilutive restricted stock unit awards and stock options 539 686 1,134 Diluted common shares 48,781 48,895 50,274 Diluted net income per share $ 0.48 $ 2.94 $ 2.75 |
Equity Award Compensation | 12. Equity Award Compensation ASC Topic 718, Compensation — Stock Compensation The Company accounts for forfeited awards as they occur as permitted by ASC 718. Ultimately, the actual expense recognized over the vesting period will be for those shares that vested. Restricted stock units (“RSU’s”) are time based awards that do not have market or performance conditions and generally (i) cliff vest after three years or (ii) vest over a three year period. Performance based restricted stock units (“PRSU’s”) granted to executives prior to fiscal 2020 include (i) market price performance conditions that provide for the award to vest only after the average closing price of the Company’s stock trades above a predetermined market level and (ii) another performance condition that requires the achievement of an operating performance target. PRSU’s generally vest over a two It is the Company’s policy to grant stock options at prices not less than the fair market value on the date of the grant. Option terms, vesting and exercise periods vary, except that the term of an option may not exceed ten years. Also, excess tax benefits arising from the lapse or exercise of an equity award are no longer recognized in additional paid-in capital. The assumed proceeds from applying the treasury stock method when computing net income per share is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. |
Cost of Goods Sold | 13. Cost of Goods Sold Cost of goods sold includes the expenses incurred to acquire, produce and prepare inventory for sale, including product costs, warehouse staff wages, freight in, import costs, packaging materials, the cost of operating the overseas offices and royalty expense. Gross margins may not be directly comparable to those of the Company’s competitors, as income statement classifications of certain expenses may vary by company. Additionally, costs expected to be incurred when products are returned should be accrued for upon the sale of the product as a component of cost of goods sold. |
Shipping and Handling Costs | 14. Shipping and Handling Costs Shipping and handling costs consist of warehouse facility costs, third party warehousing, freight out costs, and warehouse supervisory wages and are included in selling, general and administrative expenses. Shipping and handling costs included in selling, general and administrative expenses were $111.8 million, $138.8 million and $125.9 million for the years ended January 31, 2021, 2020 and 2019, respectively. |
Advertising Costs | 15. Advertising Costs The Company expenses advertising costs as incurred and includes these costs in selling, general and administrative expenses. Advertising paid as a percentage of sales under license agreements are expensed in the period in which the sales occur or are accrued to meet guaranteed minimum requirements under license agreements. Advertising expense was $55.3 million, $94.7 million and $87.8 million for the years ended January 31, 2021, 2020 and 2019, respectively. Prepaid advertising, which represents advance payments to licensors for minimum guaranteed payments for advertising under the Company’s licensing agreements, was $8.0 million and $8.7 million at January 31, 2021 and 2020, respectively. |
Use of Estimates | 16. Use of Estimates In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. In determining these estimates, management must use amounts that are based upon its informed judgments and best estimates. The Company continually evaluates its estimates, including those related to customer allowances and discounts, product returns, bad debts, inventories, equity awards, income taxes, carrying values of intangible assets and long-lived assets including right of use assets. Estimates are based on historical experience and on various other assumptions that the Company believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. |
Fair Value of Financial Instruments | 17. Fair Value of Financial Instruments GAAP establishes 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 January 31, January 31, January 31, January 31, Financial Instrument Level 2021 2020 2021 2020 (In thousands) Secured Notes 2 $ 400,000 $ — $ 400,000 $ — Term loan 2 — 300,000 — 300,000 Note issued to LVMH 3 107,869 102,009 101,810 95,126 Unsecured loans 2 9,119 2,860 9,119 2,860 Overdraft facilities 2 3,007 — 3,007 — The Company’s debt instruments are recorded at their carrying values in its 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. On August 7, 2020, the Company refinanced its term loan and revolving credit facility. See Note I – Notes Payable and Other Liabilities. The 2% note in the principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKI was issued at a discount of $40.0 million in accordance with ASC 820 — Fair Value Measurements The fair value of the LVMH Note 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 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 fiscal 2021, the Company recorded a $20.1 million impairment charge primarily related to operating lease assets, leasehold improvements and furniture and fixtures at certain Wilsons Leather and G.H. Bass stores, primarily due to the retail restructuring, as well as at certain DKNY and Vilebrequin stores as a result of the performance at these stores. During fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. In addition, during fiscal 2020, the Company recorded an impairment of $9.6 million, net of tax, in connection with the adoption of ASC 842 – Leases (“ASC 842”) that was recognized through retained earnings. |
Foreign Currency Translation | 18. Foreign Currency Translation Certain of the Company’s international subsidiaries use different functional currencies, which are, for the most part, the local currency. In accordance with the authoritative guidance, assets and liabilities of the Company’s foreign operations 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. |
Recently Adopted Accounting Guidance | 19. Effects of Recently 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 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 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 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 consolidated financial statements. Accounting Guidance Issued 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 consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Accounting Policies [Abstract] | |
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 per share: Year Ended January 31, 2021 2020 2019 (In thousands, except per share amounts) Net income attributable to G-III Apparel Group, Ltd. $ 23,545 $ 143,837 $ 138,067 Basic net income per share: Basic common shares 48,242 48,209 49,140 Basic net income per share $ 0.49 $ 2.98 $ 2.81 Diluted net income per share: Basic common shares 48,242 48,209 49,140 Dilutive restricted stock unit awards and stock options 539 686 1,134 Diluted common shares 48,781 48,895 50,274 Diluted net income per share $ 0.48 $ 2.94 $ 2.75 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments: Carrying Value Fair Value January 31, January 31, January 31, January 31, Financial Instrument Level 2021 2020 2021 2020 (In thousands) Secured Notes 2 $ 400,000 $ — $ 400,000 $ — Term loan 2 — 300,000 — 300,000 Note issued to LVMH 3 107,869 102,009 101,810 95,126 Unsecured loans 2 9,119 2,860 9,119 2,860 Overdraft facilities 2 3,007 — 3,007 — |
Retail Restructuring (Tables)
Retail Restructuring (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Retail Restructuring [Abstract] | |
Reconciliation of accruals | Restructuring charges are recorded within selling, general and administrative expenses in the Company’s consolidated statements of income and comprehensive income. The following is a reconciliation of the accrual for the period ended January 31, 2021: Severance and Benefit Costs Store Closing Costs Total (In thousands) Balance at January 31, 2020 $ — $ — $ — Amounts charged to expense 1,257 961 2,218 Cash payments (1,103) (280) (1,383) Balance at January 31, 2021 $ 154 $ 681 $ 835 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Allowance for Doubtful Accounts [Abstract] | |
Accounts Receivable and Allowance for Doubtful Accounts | The Company’s accounts receivable and allowance for doubtful accounts as of January 31, 2021 were: January 31, 2021 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 509,010 $ 1,147 $ 510,157 Allowance for doubtful accounts (17,429) (30) (17,459) Accounts receivable, net $ 491,581 $ 1,117 $ 492,698 |
Activity in Allowance for Credit Losses | January 31, 2021 Wholesale Retail Total (In thousands) Balance as of January 31, 2020 $ (628) $ (82) $ (710) Provision for credit losses (16,934) 52 (16,882) Accounts written off as uncollectible 133 — 133 Balance as of January 31, 2021 $ (17,429) $ (30) $ (17,459) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of property and equipment | January 31, Estimated life 2021 2020 (In thousands) Machinery and equipment 5 years $ 1,724 $ 1,867 Leasehold improvements 3 74,598 75,808 Furniture and fixtures 3 100,572 109,284 Computer equipment and software 2 40,255 41,040 217,149 227,999 Less: accumulated depreciation (160,085) (151,976) $ 57,064 $ 76,023 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Leases [Abstract] | |
Schedule of lease assets and liabilities | Leases Classification January 31, 2021 January 31, 2020 (In thousands) Assets Operating Operating lease assets $ 186,070 $ 270,032 Total lease assets $ 186,070 $ 270,032 Liabilities Current operating Current operating lease liabilities $ 43,560 $ 63,166 Noncurrent operating Noncurrent operating lease liabilities 161,668 249,040 Total lease liabilities $ 205,228 $ 312,206 |
Schedule of maturity of operating lease liabilities | Year Ending January 31, Amount (In thousands) 2022 $ 58,045 2023 51,312 2024 38,408 2025 31,315 2026 24,837 After 2026 55,362 Total lease payments $ 259,279 Less: Interest 54,051 Present value of lease liabilities $ 205,228 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of intangible assets | Intangible assets consist of: January 31, 2021 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,884 $ (16,959) $ 2,925 Trademarks 8 2,194 (2,194) — Customer relationships 15 48,430 (17,843) 30,587 Other 5 8,624 (7,077) 1,547 Total finite-lived intangible assets $ 79,132 $ (44,073) $ 35,059 Indefinite-lived intangible assets Goodwill 263,135 Trademarks 443,612 Total indefinite-lived intangible assets 706,747 Total intangible assets, net $ 741,806 January 31, 2020 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,258 $ (16,107) $ 3,151 Trademarks 8 2,194 (2,194) — Customer relationships 15 48,214 (14,831) 33,383 Other 5 7,757 (5,928) 1,829 Total finite-lived intangible assets $ 77,423 $ (39,060) $ 38,363 Indefinite-lived intangible assets Goodwill 260,622 Trademarks 438,658 Total indefinite-lived intangible assets 699,280 Total intangible assets, net $ 737,643 |
Schedule of estimated intangible amortization expense | Year Ending January 31, Amortization Expense (In thousands) 2022 $ 3,643 2023 3,301 2024 3,074 2025 3,035 2026 3,028 |
Schedule of changes in amounts of goodwill | Changes in the amounts of goodwill for each of the years ended January 31, 2021 and 2020 are summarized by reportable segment as follows (in thousands): Wholesale Retail Total January 31, 2019 $ 261,137 — 261,137 Currency translation (515) — (515) January 31, 2020 260,622 — 260,622 Currency translation 2,513 — 2,513 January 31, 2021 $ 263,135 $ — $ 263,135 |
NOTES PAYABLE AND OTHER LIABI_2
NOTES PAYABLE AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Notes Payable and Other Liabilities [Abstract] | |
Schedule of long-term debt | January 31, 2021 January 31, 2020 (in thousands) Secured Notes $ 400,000 $ — Term loan — 300,000 Revolving credit facility — — Note issued to LVMH 125,000 125,000 Unsecured loan 9,119 2,860 Overdraft facilities 3,007 — Subtotal 537,126 427,860 Less: Net debt issuance costs (1) (7,643) (7,402) Debt discount (17,131) (22,991) Current portion of long-term debt (4,402) (673) Total $ 507,950 $ 396,794 (1) Does not include the debt issuance costs, net of amortization, totaling $7.2 million and $4.6 million as of January 31, 2021 and 2020, respectively, related to the revolving credit facility. The debt issuance costs have been deferred and are classified in assets in the accompanying Consolidated Balance Sheets in accordance with ASC 835. |
Schedule of future debt repayments | Year Ending January 31, Amount (In thousands) 2022 $ 4,402 2023 1,718 2024 126,822 2025 2,147 2026 and thereafter 402,037 |
Schedule of accrued expenses | January 31, 2021 January 31, 2020 (in thousands) Accrued bonuses $ 23,851 $ 40,980 Other accrued expenses 78,936 60,858 Total $ 102,787 $ 101,838 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision | Year Ended January 31, 2021 2020 2019 (In thousands) Current Federal $ (15,828) $ 22,471 $ 23,463 State and city (491) 4,856 5,907 Foreign 3,803 10,615 10,989 (12,516) 37,942 40,359 Deferred Federal 22,770 8,250 4,419 State and city 3,364 315 191 Foreign (1,415) (8,246) 794 24,719 319 5,404 Income tax expense $ 12,203 $ 38,261 $ 45,763 Income before income taxes United States $ 37,727 $ 138,292 $ 137,748 Non-United States (2,001) 43,806 46,082 $ 35,726 $ 182,098 $ 183,830 |
Schedule of significant components of net deferred tax assets | 2021 2020 (In thousands) Deferred income tax assets: Compensation $ 2,673 $ 8,379 Inventory 6,780 4,498 Provision for bad debts and sales allowances 18,531 34,197 Supplemental employee retirement plan 584 511 Net operating loss 12,703 4,877 Operating lease liability 35,658 67,044 Foreign tax credit carryforward 4,962 — Other 3,792 1,148 Gross deferred income tax assets 85,683 120,654 Less: valuation allowance (13,272) (4,929) Net deferred income tax assets 72,411 115,725 Deferred income tax liabilities: Depreciation and amortization (41,185) (33,539) Intangibles (14,271) (13,602) Operating lease asset (30,182) (55,801) Prepaid expenses and other (2,028) (2,600) Total deferred income tax liabilities (87,666) (105,542) Net deferred tax (liabilities) assets $ (15,255) $ 10,183 |
Schedule of reconciliation of statutory federal income tax rate to effective rate reported in financial statements | 2021 2020 2019 Provision for Federal income taxes at the statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of Federal tax benefit (0.6) 1.9 2.4 Permanent differences resulting in Federal taxable income 12.8 5.9 6.6 Foreign tax rate differential (0.3) (3.8) 0.5 Share-based payments 12.5 (0.8) (0.6) Foreign tax credit (7.3) (3.5) (5.5) Valuation allowance 13.7 0.9 0.2 Net operating loss carryback (18.6) — — Other, net 1.0 (0.6) 0.3 Actual provision for income taxes 34.2 % 21.0 % 24.9 % |
Schedule of reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) | 2021 2020 2019 (In thousands) Balance at February 1, $ 2,111 $ — $ 82 Additions for tax positions of prior years 182 2,111 — Lapses of statues of limitations — — (82) Balance at January 31, $ 2,293 $ 2,111 $ — |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of restricted stock | Restricted Stock Units and Performance Based Restricted Stock Units Restricted Stock Units Performance Based Restricted Stock Units Weighted Average Weighted Average Awards Grant Date Awards Grant Date Outstanding Fair Value Outstanding Fair Value Unvested as of January 31, 2018 327,014 $ 30.59 1,445,563 $ 29.26 Granted 137,723 $ 38.32 391,530 $ 30.23 Vested (159,663) $ 30.38 (292,266) $ 25.91 Cancelled (23,249) $ 29.69 (5,033) $ 27.10 Unvested as of January 31, 2019 281,825 $ 34.56 1,539,794 $ 30.15 Granted 142,594 $ 37.74 332,651 $ 35.77 Vested (168,781) $ 32.32 (810,655) $ 24.58 Cancelled (12,695) $ 35.09 (3,080) $ 42.41 Unvested as of January 31, 2020 242,943 $ 37.95 1,058,710 $ 36.15 Granted 1,280,664 $ 10.25 — $ — Vested (107,917) $ 37.96 (279,053) $ 32.43 Cancelled (22,422) $ 39.41 (312,827) $ 42.41 Unvested as of January 31, 2021 1,393,268 $ 12.47 466,830 $ 34.17 |
Schedule of information regarding stock options | Stock Options 2021 2020 2019 Weighted Weighted Weighted Average Average Average Shares Exercise Shares Exercise Shares Exercise Stock options outstanding at beginning of year 39,311 $ 18.51 55,311 $ 15.70 62,666 $ 11.50 Exercised (21,066) $ 14.07 (13,200) $ 8.71 (15,600) $ 6.55 Granted — $ — — $ — 8,245 $ 30.32 Cancelled or forfeited — $ — (2,800) $ 9.20 — $ — Stock options outstanding at end of year 18,245 $ 23.63 39,311 $ 18.51 55,311 $ 15.70 Exercisable 18,245 $ 23.63 35,188 $ 17.12 47,066 $ 13.14 |
Schedule of information about stock options outstanding | Number Weighted Weighted Number Weighted Outstanding as of Average Average Exercisable as of Average January 31, Remaining Exercise January 31, Exercise Range of Exercise Prices 2021 Contractual Life Price 2021 Price $18.11 - $30.32 18,245 1.50 $ 23.63 18,245 $ 23.63 18,245 18,245 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of future minimum royalty and advertising payments required under these agreements | Year Ending January 31, Amount (In thousands) 2022 107,199 2023 91,225 2024 89,474 2025 31,540 2026 25,618 Thereafter — $ 345,056 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Segments [Abstract] | |
Schedule of information regarding reportable segments | January 31, 2021 Wholesale Retail Elimination (1) Total Net sales $ 1,916,763 170,421 (32,038) $ 2,055,146 Cost of goods sold 1,229,548 113,194 (32,038) 1,310,704 Gross profit 687,215 57,227 — 744,442 Selling, general and administrative expenses 444,549 160,553 — 605,102 Depreciation and amortization 31,998 6,627 — 38,625 Asset impairments, net of gain on lease terminations 1,010 16,863 — 17,873 Operating profit (loss) $ 209,658 $ (126,816) $ — $ 82,842 January 31, 2020 Wholesale Retail Elimination (1) Total Net sales $ 2,862,889 $ 385,910 $ (88,335) $ 3,160,464 Cost of goods sold 1,925,062 205,797 (88,335) 2,042,524 Gross profit 937,827 180,113 — 1,117,940 Selling, general and administrative expenses 604,377 227,803 — 832,180 Depreciation and amortization 30,806 7,929 — 38,735 Asset impairments 412 18,959 — 19,371 Operating profit (loss) $ 302,232 $ (74,578) $ — $ 227,654 January 31, 2019 Wholesale Retail Elimination (1) Total Net sales $ 2,716,958 $ 476,764 $ (117,514) $ 3,076,208 Cost of goods sold 1,837,335 249,278 (117,514) 1,969,099 Gross profit 879,623 227,486 — 1,107,109 Selling, general and administrative expenses 570,290 264,473 — 834,763 Depreciation and amortization 29,644 9,175 — 38,819 Asset impairments — 2,813 — 2,813 Operating profit (loss) $ 279,689 $ (48,975) $ — $ 230,714 (1) Represents intersegment sales to the Company’s retail operations segment . |
Schedule of total assets for each reportable segments | January 31, January 31, 2021 2020 (In thousands) Wholesale $ 1,844,682 $ 1,912,175 Retail 85,625 272,832 Corporate 506,079 380,130 Total Assets $ 2,436,386 $ 2,565,137 |
Schedule of total net sales and long-lived assets by geographic region | 2021 2020 2019 Long-Lived Long-Lived Long-Lived Geographic Region Net Sales Assets Net Sales Assets Net Sales Assets United States $ 1,755,791 $ 834,181 $ 2,774,492 $ 964,476 $ 2,656,479 $ 762,444 Non-United States 299,355 258,165 385,972 231,973 419,729 191,719 $ 2,055,146 $ 1,092,346 $ 3,160,464 $ 1,196,449 $ 3,076,208 $ 954,163 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jan. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of summarized quarterly financial data | Summarized quarterly financial data for the fiscal years ended January 31, 2021 and 2020 are as follows (in thousands, except per share amounts): Quarter Ended April 30, July 31, October 31, January 31, 2020 2020 (1) 2020 2021 (2) Net sales $ 405,131 $ 297,212 $ 826,561 $ 526,242 Gross profit 124,401 134,693 297,755 187,593 Net income attributable to G-III Apparel Group, Ltd. (39,295) (14,976) 63,174 14,642 Net income attributable to G-III Apparel Group, Ltd. per common share Basic $ (0.82) $ (0.31) $ 1.31 $ 0.30 Diluted $ (0.82) $ (0.31) $ 1.29 $ 0.30 Quarter Ended April 30, July 31, October 31, January 31, 2019 2019 2019 2020 (3) Net sales $ 633,552 $ 643,892 $ 1,128,403 $ 754,617 Gross profit 236,064 231,769 399,019 251,088 Net income 12,043 11,119 95,387 25,288 Net income per common share Basic $ 0.25 $ 0.23 $ 2.00 $ 0.53 Diluted $ 0.24 $ 0.23 $ 1.97 $ 0.52 (1) During the second quarter of fiscal 2021, the Company recorded a $19.8 million impairment charge primarily related to operating lease assets, leasehold improvements, furniture and fixtures and store related intangible assets at certain Wilsons Leather and G.H. Bass stores primarily due to the retail restructuring, and certain DKNY and Vilebrequin stores as a result of the performance at these stores. (2) During the fourth quarter of fiscal 2021, the Company recorded a $0.7 million impairment charge primarily related to operating lease assets, leasehold improvements, furniture and fixtures and store related intangible assets at certain DKNY and Vilebrequin stores as a result of the performance at these stores. (3) During the fourth quarter of fiscal 2020, the Company recorded a $21.8 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain Wilsons Leather, G.H. Bass and DKNY stores as a result of the performance at these stores. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation between Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Accounting Policies [Abstract] | |||||||||||
Net income (loss) | $ 23,523 | $ 143,837 | $ 138,067 | ||||||||
Net income attributable to G-III Apparel Group, Ltd. | $ 14,642 | $ 63,174 | $ (14,976) | $ (39,295) | $ 25,288 | $ 95,387 | $ 11,119 | $ 12,043 | $ 23,545 | $ 143,837 | $ 138,067 |
Basic net income (loss) per share: | |||||||||||
Basic common shares | 48,242 | 48,209 | 49,140 | ||||||||
Net income (loss) per common share (in dollar per shares) | $ 0.30 | $ 1.31 | $ (0.31) | $ (0.82) | $ 0.53 | $ 2 | $ 0.23 | $ 0.25 | $ 0.49 | $ 2.98 | $ 2.81 |
Diluted net income (loss) per share: | |||||||||||
Basic common shares | 48,242 | 48,209 | 49,140 | ||||||||
Diluted restricted stock awards and stock options | 539 | 686 | 1,134 | ||||||||
Diluted common shares | 48,781 | 48,895 | 50,274 | ||||||||
Diluted net income (loss) per share (in dollars per share) | $ 0.30 | $ 1.29 | $ (0.31) | $ (0.82) | $ 0.52 | $ 1.97 | $ 0.23 | $ 0.24 | $ 0.48 | $ 2.94 | $ 2.75 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Textuals (Details) - USD ($) $ in Thousands | Dec. 01, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Nov. 30, 2020 | Jan. 31, 2018 |
Accounting Policies [Line Items] | ||||||
Cash and cash equivalents | $ 351,934 | $ 197,372 | $ 70,138 | $ 45,776 | ||
Deferred lease payments | $ 3,400 | |||||
Impairment charge on leasehold improvements | $ 9,600 | |||||
Corporate income tax rate | 21.00% | 21.00% | 21.00% | |||
Lock up period after vesting | 2 years | |||||
Anti-dilutive shares excluded from diluted net income per share calculation | 182,000 | 692,000 | 336,000 | |||
Common stock issued in connection with exercise or vesting of equity awards | 0 | 8,851 | 168,179 | |||
Treasury shares re-issued in connection with the exercise or vesting of equity awards | 367,290 | 619,651 | 150,809 | |||
Selling, general and administrative expenses | $ 605,102 | $ 832,180 | $ 834,763 | |||
Advertising expense | 55,300 | 94,700 | 87,800 | |||
Prepaid advertising | $ 8,000 | 8,700 | ||||
Fabco Holding B.V. [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Subsidiary ownership percentage | 75.00% | |||||
Ownership percent | 49.00% | |||||
Karl Lagerfeld Holding B.V. ("KLH") | ||||||
Accounting Policies [Line Items] | ||||||
Percentage of ownership interest | 19.00% | |||||
KLNA | ||||||
Accounting Policies [Line Items] | ||||||
Ownership percent | 49.00% | |||||
Wholesale shipping and handling costs | ||||||
Accounting Policies [Line Items] | ||||||
Selling, general and administrative expenses | $ 111,800 | 138,800 | 125,900 | |||
Restricted Stock Units (RSUs) | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 3 years | |||||
Restricted Stock Units (RSUs) | Long-Term Incentive Stock Plan | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 3 years | |||||
Performance Shares [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 3 years | |||||
Lock up period after vesting | 2 years | |||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Availability under revolving credit facility | $ 450,000 | |||||
Intangible assets, estimated useful lives | 5 years | |||||
Minimum | Performance Shares [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 2 years | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Intangible assets, estimated useful lives | 17 years | |||||
Maximum | Performance Shares [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 5 years | |||||
Maximum | Stock Options | ||||||
Accounting Policies [Line Items] | ||||||
Vesting and exercise period of awards | 10 years | |||||
Wilsons Leather, G.H. Bass, DKNY and Vilebrequin Stores [Member] | Furniture and fixtures | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charge on leasehold improvements | $ 20,100 | |||||
Wilsons, G.H. Bass and DKNY Stores [Member] | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charge on leasehold improvements | 21,800 | |||||
Wilsons, G.H. Bass and DKNY Stores [Member] | Furniture and fixtures | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charge on leasehold improvements | $ 21,800 | 2,800 | ||||
Wilsons, G H Bass And Vilebrequin Stores | Furniture and fixtures | ||||||
Accounting Policies [Line Items] | ||||||
Impairment charge on leasehold improvements | $ 2,800 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Carrying Values and the Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Aug. 07, 2020 | Jan. 31, 2020 |
Secured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.875% | 7.875% | |
Principal amount of debt | $ 400,000 | ||
LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2.00% | ||
Principal amount of debt | $ 125,000 | ||
Debt discount | 40,000 | ||
Level 2 | Secured notes | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 400,000 | ||
Debt instruments, fair value | 400,000 | ||
Level 2 | Term Loan | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | $ 300,000 | ||
Debt instruments, fair value | 300,000 | ||
Level 2 | Unsecured Loan | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 9,119 | 2,860 | |
Debt instruments, fair value | 9,119 | 2,860 | |
Level 2 | Overdraft facilities | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 3,007 | ||
Debt instruments, fair value | 3,007 | ||
Level 3 | LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 107,869 | 102,009 | |
Debt instruments, fair value | $ 101,810 | $ 95,126 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Effects of Recently Adopted and Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Accounting Policies [Abstract] | ||
Operating lease liabilities | $ 205,228 | $ 312,206 |
Operating lease assets | 186,070 | 270,032 |
Impairment of the operating lease assets, net of tax | $ 19,400 | $ 9,900 |
Retail Restructuring (Narrative
Retail Restructuring (Narrative) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jun. 30, 2020 | Jan. 31, 2020 |
Operating lease liabilities | $ 205,228 | $ 312,206 | |
Wilsons Leather, G.H Bass, and Calvin Klein Performance Stores [Member] | |||
Restructuring expected costs | $ 100,000 | ||
Restructuring and related cost expected cost cash portion | $ 65,000 |
Retail Restructuring (Details)
Retail Restructuring (Details) - Retail operations $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Balance at beginning of period | $ 0 |
Amounts charged to expense | 2,218 |
Cash payments | (1,383) |
Balance at end of period | 835 |
Severance and Benefit Costs | |
Balance at beginning of period | 0 |
Amounts charged to expense | 1,257 |
Cash payments | (1,103) |
Balance at end of period | 154 |
Store Closing Costs | |
Balance at beginning of period | 0 |
Amounts charged to expense | 961 |
Cash payments | (280) |
Balance at end of period | $ 681 |
Revenue Recognition - Textuals
Revenue Recognition - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Feb. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Customer Refund Liability, Current | $ 99,355 | $ 233,418 | |
Contract liability | 5,900 | 5,900 | |
Revenue recognized related to contract liabilities | 4,500 | ||
Contract assets | 0 | 0 | |
Impact of Adoption of ASC 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Reduction in stockholders equity | $ 53,700 | ||
Customer Refund Liability, Current | $ 99,400 | $ 233,400 |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Increase in allowance for doubtful accounts | $ 16,882 |
Bankruptcy [Member] | |
Increase in allowance for doubtful accounts | $ 16,700 |
Allowance for Doubtful Accoun_4
Allowance for Doubtful Accounts (Accounts Receivable and Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | $ 510,157 | |
Allowance for doubtful accounts | (17,459) | $ (710) |
Accounts receivable, net | 492,698 | |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | 509,010 | |
Allowance for doubtful accounts | (17,429) | (628) |
Accounts receivable, net | 491,581 | |
Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Accounts receivable, gross | 1,147 | |
Allowance for doubtful accounts | (30) | $ (82) |
Accounts receivable, net | $ 1,117 |
Allowance for Doubtful Accoun_5
Allowance for Doubtful Accounts (Activity in Allowance for Credit Losses) (Details) $ in Thousands | 12 Months Ended |
Jan. 31, 2021USD ($) | |
Segment Reporting Information [Line Items] | |
Beginning balance | $ (710) |
Provision for credit losses | (16,882) |
Accounts written off as uncollectible | 133 |
Ending balance | (17,459) |
Wholesale | |
Segment Reporting Information [Line Items] | |
Beginning balance | (628) |
Provision for credit losses | (16,934) |
Accounts written off as uncollectible | 133 |
Ending balance | (17,429) |
Retail [Member] | |
Segment Reporting Information [Line Items] | |
Beginning balance | (82) |
Provision for credit losses | 52 |
Ending balance | $ (30) |
Inventories - Textuals (Details
Inventories - Textuals (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Jan. 31, 2020 |
Inventory [Line Items] | ||
Inventory held on consignment | $ 3.5 | $ 9.1 |
Prepaid Expenses and Other Current Assets | ||
Inventory [Line Items] | ||
Inventory return asset | $ 22.5 | $ 31 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment at Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 217,149 | $ 227,999 |
Less: accumulated depreciation | (160,085) | (151,976) |
Property and equipment, net | $ 57,064 | 76,023 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 5 years | |
Property and equipment, gross | $ 1,724 | 1,867 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 74,598 | 75,808 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 13 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 100,572 | 109,284 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 3 years | |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 10 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 40,255 | $ 41,040 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 2 years | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 5 years |
PROPERTY AND EQUIPMENT - Textua
PROPERTY AND EQUIPMENT - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Property Plant And Equipment [Line Items] | |||
Fixed asset write offs | $ 0.4 | $ 5.4 | |
Depreciation expense | 34 | 33.8 | $ 33.9 |
Impairment charge on leasehold improvements | 9.6 | ||
Wilsons, G.H. Bass and DKNY Stores [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | 21.8 | ||
Furniture and fixtures | Wilsons, G.H. Bass and DKNY Stores [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | 21.8 | 2.8 | |
Furniture and fixtures | Wilsons, G H Bass And Vilebrequin Stores | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | $ 2.8 | ||
Leasehold improvements and furniture and fixtures [Member] | Wilsons, G.H. Bass and DKNY Stores [Member] | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | $ 0.8 | $ 11.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Lessee, Operating Lease, Description [Abstract] | ||
Transition package | true | |
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 | $ 6.7 | $ 16.8 |
Impairment charge related to the operating lease assets | $ 19.4 | $ 9.9 |
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 | Jan. 31, 2021 | Jan. 31, 2020 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease assets | $ 186,070 | $ 270,032 |
Classification of operating lease assets | Operating lease assets | |
Total lease assets | $ 186,070 | 270,032 |
Current operating lease liabilities | $ 43,560 | 63,166 |
Classification current operating lease liabilities | Current operating lease liabilities | |
Noncurrent operating lease liabilities | $ 161,668 | 249,040 |
Classification of noncurrent operating liabilities | Noncurrent operating lease liabilities | |
Total lease liabilities | $ 205,228 | $ 312,206 |
Leases - Lease cost (Details)
Leases - Lease cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Selling, general and administrative expenses | ||
Lease, Cost [Abstract] | ||
Lease costs | $ 92.4 | $ 98.4 |
Leases - Future minimum payment
Leases - Future minimum payments under our operating lease (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 58,045 | |
2023 | 51,312 | |
2024 | 38,408 | |
2025 | 31,315 | |
2026 | 24,837 | |
After 2026 | 55,362 | |
Total lease payments | 259,279 | |
Less: Interest | 54,051 | |
Present value of lease liabilities | $ 205,228 | $ 312,206 |
Leases - Other information (Det
Leases - Other information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Weighted average remaining lease term | 5 years 8 months 12 days | |
Weighted average discount rate | 8.30% | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 108.9 | $ 100.8 |
Right-of-use assets obtained in exchange for lease obligations | $ 56.6 | $ 27 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 79,132 | $ 77,423 | |
Accumulated amortization | (44,073) | (39,060) | |
Total finite-lived intangible assets | 35,059 | 38,363 | |
Indefinite-lived intangible assets | |||
Goodwill | 263,135 | 260,622 | $ 261,137 |
Trademarks | 443,612 | 438,658 | |
Total indefinite-lived intangible assets | 706,747 | 699,280 | |
Total intangible assets, net | $ 741,806 | 737,643 | |
Minimum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 5 years | ||
Maximum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 17 years | ||
Licenses | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 19,884 | 19,258 | |
Accumulated amortization | (16,959) | (16,107) | |
Total finite-lived intangible assets | $ 2,925 | $ 3,151 | |
Indefinite-lived intangible assets | |||
Estimated Life | 14 years | 14 years | |
Trademarks | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 2,194 | $ 2,194 | |
Accumulated amortization | $ (2,194) | $ (2,194) | |
Trademarks | Minimum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 8 years | 8 years | |
Trademarks | Maximum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 12 years | 12 years | |
Customer relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 48,430 | $ 48,214 | |
Accumulated amortization | (17,843) | (14,831) | |
Total finite-lived intangible assets | $ 30,587 | $ 33,383 | |
Customer relationships | Minimum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 15 years | 15 years | |
Customer relationships | Maximum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 17 years | 17 years | |
Other | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 8,624 | $ 7,757 | |
Accumulated amortization | (7,077) | (5,928) | |
Total finite-lived intangible assets | $ 1,547 | $ 1,829 | |
Other | Minimum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 5 years | 5 years | |
Other | Maximum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 10 years | 10 years |
INTANGIBLE ASSETS - Estimated a
INTANGIBLE ASSETS - Estimated amortization expense (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Intangible Assets [Abstract] | |
2022 | $ 3,643 |
2023 | 3,301 |
2024 | 3,074 |
2025 | 3,035 |
2026 | $ 3,028 |
INTANGIBLE ASSETS - Change in G
INTANGIBLE ASSETS - Change in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | $ 260,622 | $ 261,137 |
Currency translation | 2,513 | (515) |
Goodwill, Ending Balance | 263,135 | 260,622 |
Wholesale | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | 260,622 | 261,137 |
Currency translation | 2,513 | (515) |
Goodwill, Ending Balance | 263,135 | 260,622 |
Retail [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, Beginning Balance | ||
Currency translation | ||
Goodwill, Ending Balance |
INTANGIBLE ASSETS - Textuals (D
INTANGIBLE ASSETS - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Business Acquisition [Line Items] | |||
Intangible assets amortization expense | $ 4,300 | $ 4,500 | $ 4,600 |
Goodwill | 263,135 | 260,622 | 261,137 |
Retail [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill |
NOTES PAYABLE AND OTHER LIABI_3
NOTES PAYABLE AND OTHER LIABILITIES - Long-term debt (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Aug. 06, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||
Total | $ 507,950 | $ 396,794 | |
Debt issuance costs | 7,200 | 4,600 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 537,126 | 427,860 | |
Less: Net debt issuance costs | (7,643) | (7,402) | |
Debt discount | (17,131) | (22,991) | |
Current portion of long-term debt | (4,402) | (673) | |
Secured notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 8,500 | ||
Secured notes | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 400,000 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Total | $ 300,000 | ||
Term Loan | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 300,000 | ||
LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt discount | (40,000) | ||
LVMH Note | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 125,000 | 125,000 | |
Unsecured Loan | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 9,119 | $ 2,860 | |
Overdraft facilities | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | $ 3,007 |
NOTES PAYABLE AND OTHER LIABI_4
NOTES PAYABLE AND OTHER LIABILITIES - Textuals (Details) $ in Thousands, € in Millions, SFr in Millions | 12 Months Ended | |||||
Jan. 31, 2021EUR (€) | Jan. 31, 2021USD ($) | Jan. 31, 2021EUR (€) | Jan. 31, 2021CHF (SFr) | Aug. 07, 2020USD ($) | Jan. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 7,200 | $ 4,600 | ||||
Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, carrying value | 537,126 | 427,860 | ||||
Debt discount | 17,131 | 22,991 | ||||
Secured notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate terms | The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2021. | |||||
Debt issuance costs | $ 8,500 | |||||
Debt instrument interest rate | 7.875% | 7.875% | 7.875% | 7.875% | ||
Frequency of periodic payment | semi-annually | |||||
Date of first payment | Feb. 15, 2021 | |||||
Principal amount of debt | $ 400,000 | |||||
Secured notes | Prior to August 15, 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption percentage | 100.00% | |||||
Maximum percentage of aggregate principal amount of Notes which may be redeemed with equity offerings | 40.00% | 40.00% | 40.00% | |||
Secured notes | Any twelve month period prior to August 15, 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption percentage | 103.00% | |||||
Maximum percentage of aggregate principal amount of notes which may be redeemed in a 12 month period | 10.00% | |||||
Secured notes | If Company experiences a Change of Control [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Redemption percentage | 101.00% | |||||
Secured notes | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, carrying value | $ 400,000 | |||||
LVMH Note | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 2.00% | 2.00% | 2.00% | |||
Principal amount of debt | $ 125,000 | |||||
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 | |||||
LVMH Note | Notes Payable due on December 1, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | 50,000 | |||||
Maturity date | Dec. 1, 2023 | |||||
LVMH Note | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, carrying value | 125,000 | 125,000 | ||||
Unsecured Loan | T.R.B. International SA | ||||||
Debt Instrument [Line Items] | ||||||
Unused debt amount | € | € 7.4 | |||||
Installment payments | € | € 0.2 | |||||
Unsecured Loan | Long-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments, carrying value | $ 9,119 | $ 2,860 | ||||
Overdraft facility | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of debt | € 5 | SFr 4.7 | ||||
Fixed rate | 1.75% | 1.75% | 1.75% | |||
Debt facility amount | € | € 2.5 | |||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused debt amount | $ 450,000 | |||||
Minimum | Unsecured Loan | T.R.B. International SA | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 0.00% | 0.00% | 0.00% | |||
Minimum | Overdraft facility | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 0.00% | 0.00% | 0.00% | |||
Maximum | Unsecured Loan | T.R.B. International SA | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate | 2.00% | 2.00% | 2.00% | |||
Maximum | Overdraft facility | ||||||
Debt Instrument [Line Items] | ||||||
Variable interest rate | 0.50% | 0.50% | 0.50% |
NOTES PAYABLE AND OTHER LIABI_5
NOTES PAYABLE AND OTHER LIABILITIES - Term loan and Senior secured credit facility (Details) - USD ($) $ in Thousands | Aug. 07, 2020 | Aug. 06, 2020 | Aug. 06, 2020 | Jan. 31, 2021 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||||
Outstanding amount | $ 507,950 | $ 396,794 | |||
Unamortized debt issuance costs | $ 3,300 | $ 3,300 | |||
Debt issuance costs | $ 7,200 | 4,600 | |||
Interest expense | 400 | ||||
Second amended and restated credit agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.50% | ||||
Second amended and restated credit agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee percentage | 0.35% | ||||
Senior secured credit facility | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 8,000 | ||||
Senior secured credit facility | One-month LIBOR | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1.00% | ||||
Senior secured credit facility | Federal funds rate | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 0.50% | ||||
Senior secured credit facility | Second amended and restated credit agreement | |||||
Debt Instrument [Line Items] | |||||
Outstanding amount | $ 0 | ||||
Debt issuance costs | $ 5,100 | ||||
Term of credit agreement | 5 years | ||||
Weighted average interest rate | 2.04% | ||||
Fixed charge coverage ratio | 1.00% | ||||
Credit covenant compliance | As of January 31, 2021, the Company was in compliance with these covenants. | ||||
Senior secured credit facility | Second amended and restated credit agreement | Base rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1.25% | ||||
Senior secured credit facility | Second amended and restated credit agreement | Base rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 0.75% | ||||
Senior secured credit facility | Second amended and restated credit agreement | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 2.25% | ||||
Senior secured credit facility | Second amended and restated credit agreement | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1.75% | ||||
Trade Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding amount | $ 6,600 | ||||
Standby Letters of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding amount | $ 3,900 | ||||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Proceeds from borrowings | $ 350,000 | ||||
Repayments of debt | $ 300,000 | 50,000 | |||
Outstanding amount | $ 300,000 | $ 300,000 | |||
Unamortized debt issuance costs | 6,100 | ||||
Term Loan | Senior secured credit facility | Second amended and restated credit agreement | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility | $ 650,000 |
NOTES PAYABLE AND OTHER LIABI_6
NOTES PAYABLE AND OTHER LIABILITIES - Future Debt Maturities (Detail) $ in Thousands | Jan. 31, 2021USD ($) |
Notes Payable and Other Liabilities [Abstract] | |
2022 | $ 4,402 |
2023 | 1,718 |
2024 | 126,822 |
2025 | 2,147 |
2026 and thereafter | $ 402,037 |
NOTES PAYABLE AND OTHER LIABI_7
NOTES PAYABLE AND OTHER LIABILITIES - Accrued expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Notes Payable and Other Liabilities [Abstract] | ||
Accrued bonuses | $ 23,851 | $ 40,980 |
Other accrued expenses | 78,936 | 60,858 |
Total | $ 102,787 | $ 101,838 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Current | |||
Federal | $ (15,828) | $ 22,471 | $ 23,463 |
State and city | (491) | 4,856 | 5,907 |
Foreign | 3,803 | 10,615 | 10,989 |
Current Income Tax Expense (Benefit), Total | (12,516) | 37,942 | 40,359 |
Deferred | |||
Federal | 22,770 | 8,250 | 4,419 |
State and city | 3,364 | 315 | 191 |
Foreign | (1,415) | (8,246) | 794 |
Deferred Income Tax Expense (Benefit), Total | 24,719 | 319 | 5,404 |
Income tax expense | 12,203 | 38,261 | 45,763 |
Income before income taxes | |||
United States | 37,727 | 138,292 | 137,748 |
Non-United States | (2,001) | 43,806 | 46,082 |
Income before income taxes | $ 35,726 | $ 182,098 | $ 183,830 |
INCOME TAXES - Summary of Signi
INCOME TAXES - Summary of Significant Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Deferred Income Tax Assets: | ||
Compensation | $ 2,673 | $ 8,379 |
Inventory | 6,780 | 4,498 |
Provision for bad debts and sales allowances | 18,531 | 34,197 |
Supplemental employee retirement plan | 584 | 511 |
Net operating loss | 12,703 | 4,877 |
Operating lease liability | 35,658 | 67,044 |
Foreign tax credit carryforward | 4,962 | |
Other | 3,792 | 1,148 |
Gross deferred income tax assets | 85,683 | 120,654 |
Less: valuation allowance | (13,272) | (4,929) |
Net deferred income tax assets | 72,411 | 115,725 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (41,185) | (33,539) |
Intangibles | (14,271) | (13,602) |
Operating lease asset | (30,182) | (55,801) |
Prepaid expenses and other | (2,028) | (2,600) |
Total deferred income tax liabilities | (87,666) | (105,542) |
Net deferred tax assets | $ 10,183 | |
Net deferred tax liabilities | $ (15,255) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Federal Income Tax Rate to Effective Rate Reported in Financial Statements (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision for Federal income taxes at the statutory rate | 21.00% | 21.00% | 21.00% |
State and local income taxes, net of Federal tax benefit | (0.60%) | 1.90% | 2.40% |
Permanent differences resulting in Federal taxable income | 12.80% | 5.90% | 6.60% |
Foreign tax rate differential | (0.30%) | (3.80%) | 0.50% |
Share-based payments | 12.50% | (0.80%) | (0.60%) |
Foreign tax credit | (7.30%) | (3.50%) | (5.50%) |
Valuation allowance | 13.70% | 0.90% | 0.20% |
Net operating loss carryback | (18.60%) | ||
Other, net | 1.00% | (0.60%) | 0.30% |
Actual provision for income taxes | 34.20% | 21.00% | 24.90% |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at February 1, | $ 2,111 | $ 82 | |
Additions for tax positions of prior years | 182 | $ 2,111 | |
Lapses of statutes of limitations | $ (82) | ||
Balance at January 31, | $ 2,293 | $ 2,111 |
INCOME TAXES - Textuals (Detail
INCOME TAXES - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Expense (Benefit) | $ 12,203 | $ 38,261 | $ 45,763 |
GILTI net tax impact | 0 | ||
Deferred tax liabilities related to intangible assets | 14,271 | $ 13,602 | |
Undistributed earnings of foreign subsidiaries | $ 80,000 | ||
Percentage change in effective tax rate from prior year | 13.20% | 3.90% | |
Corporate income tax rate | 21.00% | 21.00% | 21.00% |
Valuation allowance of deferred tax assets | $ 8,300 | ||
Decrease in unrecognized tax position reserve for current year accrual of interest and penalties | $ 200 | ||
Percentage of bonus depreciation from CARES Act elected | 100.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Rental Payments for Operating Leases Having Non-Cancelable Lease Periods in Excess of One Year (Details) $ in Thousands | Jan. 31, 2021USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 58,045 |
2023 | 51,312 |
2024 | 38,408 |
2025 | 31,315 |
2026 | 24,837 |
Thereafter | 55,362 |
Total lease payments | $ 259,279 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Royalty and Advertising Payments (Details) - Royalty and Advertising Payments $ in Thousands | Jan. 31, 2021USD ($) |
Licenses Agreements [Line Items] | |
2022 | $ 107,199 |
2023 | 91,225 |
2024 | 89,474 |
2025 | 31,540 |
2026 | 25,618 |
Future minimum royalty and advertising payments, total | $ 345,056 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Textuals (Details) $ in Thousands, $ in Millions | Mar. 14, 2018USD ($) | Mar. 14, 2018CAD ($) | Oct. 27, 2017 | Jan. 31, 2021USD ($) | Jan. 31, 2021CAD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2021CAD ($) |
Commitment And Contingencies [Line Items] | |||||||||
Advertising expense | $ 55,300 | $ 94,700 | $ 87,800 | ||||||
Interest paid | 800 | $ 1 | |||||||
Deferred expenses | 0 | $ 11,600 | $ 14.4 | ||||||
CBSA | |||||||||
Commitment And Contingencies [Line Items] | |||||||||
Reassessment period to additional duties | 90 days | ||||||||
Licenses | |||||||||
Commitment And Contingencies [Line Items] | |||||||||
Royalty expense | 116,800 | 178,800 | 165,700 | ||||||
Advertising expense | $ 29,500 | $ 48,300 | $ 46,200 | ||||||
G-III Apparel Canada ULC | |||||||||
Commitment And Contingencies [Line Items] | |||||||||
Value of bond issued for prepayments of additional duties | $ 20,900 | $ 26.9 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Restricted Stock Units (RSUs) | |||
Awards Outstanding | |||
Unvested, beginning balance | 242,943 | 281,825 | 327,014 |
Granted | 1,280,664 | 142,594 | 137,723 |
Vested | (107,917) | (168,781) | (159,663) |
Canceled | (22,422) | (12,695) | (23,249) |
Unvested, ending balance | 1,393,268 | 242,943 | 281,825 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 37.95 | $ 34.56 | $ 30.59 |
Granted | 10.25 | 37.74 | 38.32 |
Vested | 37.96 | 32.32 | 30.38 |
Canceled | 39.41 | 35.09 | 29.69 |
Unvested, ending balance | $ 12.47 | $ 37.95 | $ 34.56 |
Performance Shares [Member] | |||
Awards Outstanding | |||
Unvested, beginning balance | 1,058,710 | 1,539,794 | 1,445,563 |
Granted | 332,651 | 391,530 | |
Vested | (279,053) | (810,655) | (292,266) |
Canceled | (312,827) | (3,080) | (5,033) |
Unvested, ending balance | 466,830 | 1,058,710 | 1,539,794 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 36.15 | $ 30.15 | $ 29.26 |
Granted | 35.77 | 30.23 | |
Vested | 32.43 | 24.58 | 25.91 |
Canceled | 42.41 | 42.41 | 27.10 |
Unvested, ending balance | $ 34.17 | $ 36.15 | $ 30.15 |
STOCKHOLDERS' EQUITY - Informat
STOCKHOLDERS' EQUITY - Information Regarding All Stock Options (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Shares | |||
Stock options outstanding at beginning of year | 39,311 | 55,311 | 62,666 |
Exercised | (21,066) | (13,200) | (15,600) |
Granted | 0 | 0 | 8,245 |
Cancelled or forfeited | (2,800) | ||
Stock options outstanding at end of year | 18,245 | 39,311 | 55,311 |
Exercisable | 18,245 | 35,188 | 47,066 |
Weighted Average Exercise Price | |||
Stock options outstanding at beginning of year | $ 18.51 | $ 15.70 | $ 11.50 |
Exercised | 14.07 | 8.71 | 6.55 |
Granted | 30.32 | ||
Cancelled or forfeited | 9.20 | ||
Stock options outstanding at end of year | 23.63 | 18.51 | 15.70 |
Exercisable | $ 23.63 | $ 17.12 | $ 13.14 |
STOCKHOLDERS' EQUITY - Summary
STOCKHOLDERS' EQUITY - Summary of Information about Stock Options Outstanding (Details) | 12 Months Ended |
Jan. 31, 2021$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number, Outstanding Shares | shares | 18,245 |
Number, Exercisable Shares | shares | 18,245 |
Exercisable Price Range $18.11 - $30.32 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $ / shares | $ 18.11 |
Range of Exercise Prices, maximum | $ / shares | $ 30.32 |
Number, Outstanding Shares | shares | 18,245 |
Weighted Average Remaining Contractual Life | 1 year 6 months |
Weighted Average Exercise Price | $ / shares | $ 23.63 |
Number, Exercisable Shares | shares | 18,245 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 23.63 |
STOCKHOLDERS' EQUITY - Textuals
STOCKHOLDERS' EQUITY - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Stockholders Equity [Line Items] | |||
Number of shares authorized to be repurchased under prior program | 5,000,000 | ||
Common stock share acquired | 0 | 1,327,566 | 723,072 |
Aggregate purchase price | $ 35,216 | $ 20,311 | |
Granted | 0 | 0 | 8,245 |
Lock up period after vesting | 2 years | ||
Proceeds from exercise of equity awards | $ 297 | $ 115 | $ 101 |
Long-Term Incentive Stock Plan | |||
Stockholders Equity [Line Items] | |||
Shares available for grant | 1,811,490 | ||
Restricted Stock Units (RSUs) | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 3 years | ||
Restricted Stock Units (RSUs) | Long-Term Incentive Stock Plan | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 3 years | ||
Share-based compensation expense | $ 6,100 | 17,600 | 19,700 |
Unrecognized stock compensation related to unvested option awards | 12,900 | 18,700 | 19,400 |
Fair value of award for which restrictions lapsed | $ 5,000 | 31,000 | 17,500 |
Performance Shares [Member] | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 3 years | ||
Lock up period after vesting | 2 years | ||
Performance Shares [Member] | Minimum | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 2 years | ||
Performance Shares [Member] | Maximum | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 5 years | ||
Stock Options | |||
Stockholders Equity [Line Items] | |||
Weighted average remaining term for stock options outstanding | 1 year 6 months | ||
Aggregate intrinsic value for stock options outstanding | $ 100 | ||
Aggregate intrinsic value for stock option exercisable | 100 | ||
Proceeds from exercise of equity awards | 300 | 100 | |
Intrinsic value of stock options exercised | 100 | 300 | |
Share-based compensation expense | $ 100 | $ 100 | $ 0 |
Stock Options | Maximum | |||
Stockholders Equity [Line Items] | |||
Vesting and exercise period of awards | 10 years |
CONCENTRATION - Textuals (Detai
CONCENTRATION - Textuals (Details) | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Customer One | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 19.80% | 25.70% | |
Customer Two | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 19.50% | 17.00% | |
Customer Three | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 15.10% | 10.00% | |
Customer Four | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 10.10% | ||
Customer | Customer One | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 20.90% | 26.30% | 24.80% |
Customer | Customer Two | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 12.90% | 13.20% | 12.40% |
EMPLOYEE BENEFIT PLANS - Textua
EMPLOYEE BENEFIT PLANS - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Non-discretionary matching contribution | 100.00% | ||
Percentage of employee's compensation matched by employer | 3.00% | ||
Employer matching percentage of employee contributions | 50.00% | ||
Percentage of additional employee's compensation matched by employer | 2.00% | ||
DKI | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, matching contributions | $ 1.5 | $ 4.7 | $ 3.8 |
SEGMENTS - Information Regardin
SEGMENTS - Information Regarding Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 526,242 | $ 826,561 | $ 297,212 | $ 405,131 | $ 754,617 | $ 1,128,403 | $ 643,892 | $ 633,552 | $ 2,055,146 | $ 3,160,464 | $ 3,076,208 |
Cost of goods sold | 1,310,704 | 2,042,524 | 1,969,099 | ||||||||
Gross profit | $ 187,593 | $ 297,755 | $ 134,693 | $ 124,401 | $ 251,088 | $ 399,019 | $ 231,769 | $ 236,064 | 744,442 | 1,117,940 | 1,107,109 |
Selling, general and administrative expenses | 605,102 | 832,180 | 834,763 | ||||||||
Depreciation and amortization | 38,625 | 38,735 | 38,819 | ||||||||
Asset impairments | 17,873 | 19,371 | 2,813 | ||||||||
Operating profit (loss) | 82,842 | 227,654 | 230,714 | ||||||||
Operating Segments | Wholesale | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,916,763 | 2,862,889 | 2,716,958 | ||||||||
Cost of goods sold | 1,229,548 | 1,925,062 | 1,837,335 | ||||||||
Gross profit | 687,215 | 937,827 | 879,623 | ||||||||
Selling, general and administrative expenses | 444,549 | 604,377 | 570,290 | ||||||||
Depreciation and amortization | 31,998 | 30,806 | 29,644 | ||||||||
Asset impairments | 1,010 | 412 | |||||||||
Operating profit (loss) | 209,658 | 302,232 | 279,689 | ||||||||
Operating Segments | Retail [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 170,421 | 385,910 | 476,764 | ||||||||
Cost of goods sold | 113,194 | 205,797 | 249,278 | ||||||||
Gross profit | 57,227 | 180,113 | 227,486 | ||||||||
Selling, general and administrative expenses | 160,553 | 227,803 | 264,473 | ||||||||
Depreciation and amortization | 6,627 | 7,929 | 9,175 | ||||||||
Asset impairments | 16,863 | 18,959 | 2,813 | ||||||||
Operating profit (loss) | (126,816) | (74,578) | (48,975) | ||||||||
Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | (32,038) | (88,335) | (117,514) | ||||||||
Cost of goods sold | $ (32,038) | $ (88,335) | $ (117,514) |
SEGMENTS - Information of Total
SEGMENTS - Information of Total Assets for Company's Reportable Segments (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Jan. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,436,386 | $ 2,565,137 |
Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 506,079 | 380,130 |
Operating Segments | Wholesale | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,844,682 | 1,912,175 |
Operating Segments | Retail [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 85,625 | $ 272,832 |
SEGMENTS - Method of Overhead A
SEGMENTS - Method of Overhead Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 526,242 | $ 826,561 | $ 297,212 | $ 405,131 | $ 754,617 | $ 1,128,403 | $ 643,892 | $ 633,552 | $ 2,055,146 | $ 3,160,464 | $ 3,076,208 |
Long-Lived Assets | 1,092,346 | 1,196,449 | 1,092,346 | 1,196,449 | 954,163 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,755,791 | 2,774,492 | 2,656,479 | ||||||||
Long-Lived Assets | 834,181 | 964,476 | 834,181 | 964,476 | 762,444 | ||||||
Non-United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 299,355 | 385,972 | 419,729 | ||||||||
Long-Lived Assets | $ 258,165 | $ 231,973 | $ 258,165 | $ 231,973 | $ 191,719 |
SEGMENTS - Textuals (Details)
SEGMENTS - Textuals (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2021USD ($)segment | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | |
Segments [Abstract] | |||
Number of operating segments | segment | 2 | ||
Capital expenditures for outside of United States | $ | $ 3 | $ 4.6 | $ 4.3 |
Fabco Holding B.V. (Detail)
Fabco Holding B.V. (Detail) - USD ($) $ in Millions | Dec. 01, 2020 | Jan. 31, 2021 | Nov. 30, 2020 | Jan. 31, 2021 |
Investment in Fabco Holding B.V. | ||||
Fair value of investment held previously | $ 1 | |||
Fabco Holding B.V. [Member] | ||||
Investment in Fabco Holding B.V. | ||||
Percent of interest acquired in joint venture | 49.00% | |||
Subsidiary ownership percentage | 75.00% | |||
Pretax bargain purchase gain | $ 1.7 | |||
Fabco Holding B.V. [Member] | Amlon Capital B.V. | ||||
Investment in Fabco Holding B.V. | ||||
Percent of interest acquired in joint venture | 25.00% | 51.00% | ||
Fabco Holding B.V. [Member] | Corporate Joint Venture [Member] | ||||
Investment in Fabco Holding B.V. | ||||
Equity issued to fund joint venture | $ 25 | |||
Aggregate contribution in joint venture | $ 10 |
EQUITY INVESTMENT - Textuals (D
EQUITY INVESTMENT - Textuals (Details) $ in Thousands, € in Millions | Dec. 01, 2020 | Feb. 29, 2016USD ($) | Feb. 29, 2016EUR (€) | Jun. 30, 2015USD ($) | Jan. 31, 2019USD ($) | Nov. 30, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity issued in joint venture | $ 9,951 | |||||
Karl Lagerfeld Holding B.V. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Amount paid to acquired interest in joint venture | $ 35,400 | € 32.5 | ||||
KL North America | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percent | 49.00% | |||||
Amount paid to acquired interest in joint venture | $ 25,000 | |||||
Kingdom Holding 1 BV ("KH1") | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percent | 19.00% | 19.00% | ||||
Fabco Holding B.V. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percent | 49.00% | |||||
Subsidiary ownership percentage | 75.00% |
RELATED PARTY TRANSACTIONS - Te
RELATED PARTY TRANSACTIONS - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Nov. 30, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Related Party Transaction [Line Items] | ||||||||||||
Revenues | $ 526,242 | $ 826,561 | $ 297,212 | $ 405,131 | $ 754,617 | $ 1,128,403 | $ 643,892 | $ 633,552 | $ 2,055,146 | $ 3,160,464 | $ 3,076,208 | |
KLNA | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Royalty and advertising expense | $ 3,500 | 6,800 | 6,400 | |||||||||
KLNA | KLNA | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percent of interest acquired in joint venture | 49.00% | 49.00% | ||||||||||
Fabco | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Inventory sold to related party | $ 2,700 | 4,400 | ||||||||||
Revenue from related party | $ 900 | |||||||||||
Revenues | 3,100 | $ 2,200 | ||||||||||
Prepaid expenses | 500 | 500 | ||||||||||
Due to related party | $ 100 | $ 100 | ||||||||||
Fabco | Fabco | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Percentage of ownership interest | 49.00% |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 526,242 | $ 826,561 | $ 297,212 | $ 405,131 | $ 754,617 | $ 1,128,403 | $ 643,892 | $ 633,552 | $ 2,055,146 | $ 3,160,464 | $ 3,076,208 |
Gross profit | 187,593 | 297,755 | 134,693 | 124,401 | 251,088 | 399,019 | 231,769 | 236,064 | 744,442 | 1,117,940 | 1,107,109 |
Net income | $ 14,642 | $ 63,174 | $ (14,976) | $ (39,295) | $ 25,288 | $ 95,387 | $ 11,119 | $ 12,043 | $ 23,545 | $ 143,837 | $ 138,067 |
NET INCOME PER COMMON SHARE: | |||||||||||
Basic (in dollars per share) | $ 0.30 | $ 1.31 | $ (0.31) | $ (0.82) | $ 0.53 | $ 2 | $ 0.23 | $ 0.25 | $ 0.49 | $ 2.98 | $ 2.81 |
Diluted (in dollars per share) | $ 0.30 | $ 1.29 | $ (0.31) | $ (0.82) | $ 0.52 | $ 1.97 | $ 0.23 | $ 0.24 | $ 0.48 | $ 2.94 | $ 2.75 |
QUARTERLY FINANCIAL DATA (UNA_4
QUARTERLY FINANCIAL DATA (UNAUDITED) - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2021 | Jul. 31, 2020 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Quarterly Financial Data [Line Items] | ||||||
Asset impairments, net of loss (gain) on lease terminations | $ 17,873 | $ 19,371 | $ 2,813 | |||
Impairment of Leasehold | $ 9,600 | |||||
Wilsons Leather, G.H. Bass and DKNY Stores | ||||||
Quarterly Financial Data [Line Items] | ||||||
Asset impairments, net of loss (gain) on lease terminations | $ 21,800 | |||||
DKNY and Vilebrequin Stores [Member] | ||||||
Quarterly Financial Data [Line Items] | ||||||
Impairment of Leasehold | $ 700 | |||||
Furniture and fixtures | Wilsons Leather, G.H. Bass and DKNY Stores | ||||||
Quarterly Financial Data [Line Items] | ||||||
Impairment of Leasehold | $ 19,800 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 234,128 | $ 244,514 | $ 165,416 |
ASC 606 Transition Adjustment | 66,617 | ||
Charges to Cost and Expenses | 159,567 | 478,996 | 432,755 |
Deductions | 276,881 | 489,382 | 420,274 |
Balance at End of Period | 116,814 | 234,128 | 244,514 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 710 | 924 | 2,093 |
Charges to Cost and Expenses | 16,882 | (72) | (140) |
Deductions | 133 | 142 | 1,029 |
Balance at End of Period | 17,459 | 710 | 924 |
Reserve for returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 46,489 | 62,278 | 61,179 |
Charges to Cost and Expenses | 41,348 | 56,440 | 57,777 |
Deductions | 47,133 | 72,229 | 56,678 |
Balance at End of Period | 40,704 | 46,489 | 62,278 |
Reserve for sales allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 186,929 | 181,312 | 102,144 |
ASC 606 Transition Adjustment | 66,617 | ||
Charges to Cost and Expenses | 101,337 | 422,628 | 375,118 |
Deductions | 229,615 | 417,011 | 362,567 |
Balance at End of Period | $ 58,651 | $ 186,929 | $ 181,312 |