Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 31, 2024 | Mar. 21, 2024 | Jul. 31, 2023 | |
Document And Entity Information Abstract | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jan. 31, 2024 | ||
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 | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,042,589,801 | ||
Entity Common Stock Shares Outstanding | 45,417,321 | ||
Auditor Firm ID | 42 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | New York, New York | ||
Entity Central Index Key | 0000821002 | ||
Current Fiscal Year End Date | --01-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Documents incorporated by reference: Certain portions of the registrant’s definitive Proxy Statement relating to the registrant’s Annual Meeting of Stockholders to be held on or about June 13, 2024, to be filed pursuant to Regulation 14A of the Securities Exchange Act of 1934 with the Securities and Exchange Commission, are incorporated by reference into Part III of this Report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 507,829 | $ 191,652 |
Accounts receivable, net of allowance for doubtful accounts of $1,471 and $18,297, respectively | 562,363 | 674,963 |
Inventories | 520,426 | 709,345 |
Prepaid income taxes | 1,356 | 5,886 |
Prepaid expenses and other current assets | 68,344 | 70,654 |
Total current assets | 1,660,318 | 1,652,500 |
Investments in unconsolidated affiliates | 22,472 | 24,467 |
Property and equipment, net | 55,084 | 53,742 |
Operating lease assets | 216,886 | 239,665 |
Other assets, net | 45,147 | 52,644 |
Other intangibles, net | 31,676 | 34,842 |
Deferred income tax assets, net | 19,248 | 26,389 |
Trademarks | 630,333 | 628,156 |
Total assets | 2,681,164 | 2,712,405 |
Current liabilities | ||
Current portion of notes payable | 15,026 | 135,518 |
Accounts payable | 182,531 | 169,508 |
Accrued expenses | 140,535 | 115,586 |
Customer refund liabilities | 84,054 | 89,760 |
Current operating lease liabilities | 56,587 | 52,917 |
Income tax payable | 14,676 | 14,875 |
Other current liabilities | 219 | 905 |
Total current liabilities | 493,628 | 579,069 |
Notes payable, net of discount and unamortized issuance costs | 402,807 | 483,840 |
Deferred income tax liabilities, net | 42,736 | 44,783 |
Noncurrent operating lease liabilities | 178,247 | 204,974 |
Other non-current liabilities | 15,764 | 15,141 |
Total liabilities | 1,133,182 | 1,327,807 |
Redeemable noncontrolling interests | (2,278) | (850) |
Stockholders' Equity | ||
Preferred stock; 1,000 shares authorized; no shares issued and outstanding | ||
Common stock - $0.01 par value; 120,000 shares authorized; 49,396 and 49,396 shares issued, respectively | 264 | 264 |
Additional paid-in capital | 458,841 | 468,712 |
Accumulated other comprehensive loss | (3,207) | (11,653) |
Retained earnings | 1,160,112 | 983,944 |
Common stock held in treasury, at cost - 3,668 and 2,680 shares, respectively | (65,750) | (55,819) |
Total stockholders' equity | 1,550,260 | 1,385,448 |
Total liabilities, redeemable noncontrolling interests and stockholders' equity | $ 2,681,164 | $ 2,712,405 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Millions | Jan. 31, 2024 | Jan. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 1,471 | $ 18,297 |
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 | 3,668 | 2,680 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||
Net sales | $ 3,098,242 | $ 3,226,728 | $ 2,766,538 |
Cost of goods sold | 1,856,395 | 2,125,591 | 1,778,349 |
Gross profit | 1,241,847 | 1,101,137 | 988,189 |
Selling, general and administrative expenses | 924,223 | 833,151 | 648,015 |
Depreciation and amortization | 27,523 | 27,762 | 27,626 |
Asset impairments | 6,758 | 349,686 | 1,455 |
Operating profit (loss) | 283,343 | (109,462) | 311,093 |
Other income (loss) | (3,149) | 27,894 | 9,549 |
Interest and financing charges, net | (39,595) | (56,602) | (49,666) |
Income (loss) before income taxes | 240,599 | (138,170) | 270,976 |
Income tax expense (benefit) | 65,859 | (3,788) | 70,875 |
Net income (loss) | 174,740 | (134,382) | 200,101 |
Less: Loss attributable to noncontrolling interests | (1,428) | (1,321) | (492) |
Net income (loss) attributable to G-III Apparel Group, Ltd. | $ 176,168 | $ (133,061) | $ 200,593 |
Basic: | |||
Net income (loss) per common share | $ 3.84 | $ (2.79) | $ 4.14 |
Weighted average number of shares outstanding (in shares) | 45,859 | 47,653 | 48,426 |
Diluted: | |||
Net income (loss) per common share | $ 3.75 | $ (2.79) | $ 4.05 |
Weighted average number of shares outstanding (in shares) | 47,000 | 47,653 | 49,516 |
Net income (loss) | $ 174,740 | $ (134,382) | $ 200,101 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 8,462 | 2,965 | (12,456) |
Other comprehensive income (loss): | 8,462 | 2,965 | (12,456) |
Comprehensive income (loss) | 183,202 | (131,417) | 187,645 |
Comprehensive loss attributable to noncontrolling interests: | |||
Net loss | (1,428) | (1,321) | (492) |
Foreign currency translation adjustments | (16) | (89) | 21 |
Comprehensive loss attributable to noncontrolling interests | (1,444) | (1,410) | (471) |
Comprehensive income (loss) attributable to G-III Apparel Group, Ltd. | $ 181,758 | $ (132,827) | $ 187,174 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Common Stock Held In Treasury | Cumulative Effect, Period of Adoption, Adjustment | Total |
Balance at beginning of period at Jan. 31, 2021 | $ 264 | $ 448,417 | $ (2,094) | $ 916,683 | $ 1,336,241 | |||
Balance at beginning of period, treasury at Jan. 31, 2021 | $ (27,029) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Equity awards exercised/vested, net | (5,172) | 5,172 | ||||||
Share-based compensation expense | 17,424 | 17,424 | ||||||
Taxes paid for net share settlements | (4,340) | (4,340) | ||||||
Other comprehensive loss, net | (12,435) | (12,435) | ||||||
Repurchases of common stock | (17,300) | (17,300) | ||||||
Net income (loss) attributable to G-III Apparel Group, Ltd. | 200,593 | 200,593 | ||||||
Balance at end of period, treasury at Jan. 31, 2022 | (39,157) | |||||||
Balance at end of period at Jan. 31, 2022 | 264 | 456,329 | (14,529) | $ (271) | 1,117,005 | $ (271) | 1,519,912 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Equity awards exercised/vested, net | (10,287) | 10,287 | ||||||
Share-based compensation expense | 32,475 | 32,475 | ||||||
Taxes paid for net share settlements | (9,805) | (9,805) | ||||||
Other comprehensive loss, net | 2,876 | 2,876 | ||||||
Repurchases of common stock | (26,949) | (26,949) | ||||||
Net income (loss) attributable to G-III Apparel Group, Ltd. | (133,061) | (133,061) | ||||||
Balance at end of period, treasury at Jan. 31, 2023 | (55,819) | (55,819) | ||||||
Balance at end of period at Jan. 31, 2023 | 264 | 468,712 | (11,653) | 983,944 | 1,385,448 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Equity awards exercised/vested, net | (16,169) | 16,169 | ||||||
Share-based compensation expense | 17,164 | 17,164 | ||||||
Taxes paid for net share settlements | (10,866) | (10,866) | ||||||
Other comprehensive loss, net | 8,446 | 8,446 | ||||||
Repurchases of common stock | (26,100) | (26,100) | ||||||
Net income (loss) attributable to G-III Apparel Group, Ltd. | 176,168 | 176,168 | ||||||
Balance at end of period, treasury at Jan. 31, 2024 | $ (65,750) | (65,750) | ||||||
Balance at end of period at Jan. 31, 2024 | $ 264 | $ 458,841 | $ (3,207) | $ 1,160,112 | $ 1,550,260 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Cash flows from operating activities | |||
Net income (loss) attributable to G-III Apparel Group, Ltd. | $ 176,168 | $ (133,061) | $ 200,593 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of assets and liabilities acquired: | |||
Depreciation and amortization | 27,523 | 27,762 | 27,626 |
Loss on disposal of fixed assets | 102 | 210 | 136 |
Non-cash operating lease costs | 58,804 | 54,492 | 43,351 |
Asset impairment | 6,758 | 349,686 | 1,455 |
Dividend received from unconsolidated affiliate | (1,352) | ||
Equity gain (loss) in unconsolidated affiliates | 5,607 | (674) | (8,118) |
Change in fair value of equity investment | (1,009) | (1,258) | (1,636) |
Share-based compensation | 17,164 | 32,475 | 17,424 |
Deferred financing charges and debt discount amortization | 7,090 | 10,239 | 9,677 |
Deferred income taxes | 3,744 | (55,147) | 21,117 |
Non-cash gain on fair value of prior minority ownership of Karl Lagerfeld | (27,071) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 112,600 | (40,990) | (112,814) |
Inventories | 188,919 | (163,671) | (95,652) |
Income taxes, net | 4,331 | 12,588 | 9,742 |
Prepaid expenses and other current assets | 3,588 | (11,398) | 8,373 |
Other assets, net | 5,860 | 1,520 | 752 |
Customer refund liabilities | (5,706) | 2,972 | (12,567) |
Operating lease liabilities | (58,928) | (56,092) | (46,922) |
Accounts payable, accrued expenses and other liabilities | 34,967 | (107,181) | 124,613 |
Net cash provided by (used in) operating activities | 587,582 | (104,599) | 185,798 |
Cash flows from investing activities | |||
Operating lease assets initial direct costs | (52) | (84) | |
Investment in e-commerce retailer | (3,600) | (25,000) | (25,000) |
Investment in equity securities | (22,378) | ||
Sale of equity securities | 22,434 | ||
Sale of portion of investment in e-commerce retailer | 5,000 | ||
Capital expenditures | (24,679) | (21,528) | (18,261) |
Acquisition of KLH, net of cash acquired | (168,592) | ||
Acquisition of other foreign business, net of cash acquired | (2,810) | ||
Investment in brand acquisition | (13,244) | ||
Net cash used in investing activities | (28,331) | (217,958) | (51,505) |
Cash flows from financing activities | |||
Repayment of borrowings - revolving credit facility | (112,826) | (507,166) | |
Proceeds from borrowings - revolving credit facility | 32,738 | 587,254 | |
Repayment of borrowings - foreign facilities | (139,429) | (75,496) | (1,483) |
Proceeds from borrowings - foreign facilities | 136,850 | 83,794 | |
Repayment of borrowings - unsecured term loan | (549) | ||
Proceeds from borrowings - unsecured term loan | 230 | ||
Repayment of borrowings - LVMH Note | (125,000) | ||
Purchase of treasury shares | (26,100) | (26,949) | (17,300) |
Taxes paid for net share settlements | (10,866) | (9,805) | (4,340) |
Net cash provided by (used in) financing activities | (244,633) | 51,632 | (23,442) |
Foreign currency translation adjustments | 1,559 | (3,407) | 3,199 |
Net increase (decrease) in cash and cash equivalents | 316,177 | (274,332) | 114,050 |
Cash and cash equivalents at beginning of year | 191,652 | 465,984 | 351,934 |
Cash and cash equivalents at end of year | 507,829 | 191,652 | 465,984 |
Cash payments: | |||
Interest, net | 30,237 | 44,108 | 54,393 |
Income tax payments, net | $ 57,856 | $ 38,071 | 39,821 |
Stock received from licensing agreement | $ 4,831 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 31, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — 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 its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that is 75% owned by the Company and is treated as a consolidated majority-owned subsidiary. In October 2021, the Company purchased Sonia Rykiel, a wholly-owned operating subsidiary. The results of Sonia Rykiel are included in our consolidated financial statements beginning in the fourth quarter of fiscal 2022. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that was 19% owned by the Company through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that was 49% owned by the Company and 51% indirectly owned by KLH through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. All material intercompany balances and transactions have been eliminated. The results of KLH are included in the Company’s consolidated financial statements beginning May 31, 2022. KLH, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Fabco and Sonia Rykiel report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. Accordingly, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included in the financial statements for the year ended or ending closest to the Company’s fiscal year end. For example, with respect to the Company’s results for the year ended January 31, 2024, the results of Vilebrequin, Fabco and Sonia Rykiel are included for the year ended December 31, 2023. For the year ended January 31, 2023, the results of KLH, which includes KLNA, are included for the period from May 31, 2022 through December 31, 2022. The results of the Company’s previous 49% ownership interest in KLNA and 19% ownership interest in KLH are included for the period from January 1, 2022 through May 30, 2022. The Company’s retail operations segment reports on a 52/53-week fiscal year. The Company’s year ended January 31, 2024 was a 53-week fiscal year for the retail operations segment. The Company’s year ended January 31, 2023 was a 52-week fiscal year for the retail operations segment. 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 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. 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 3 – Allowance for Doubtful Accounts. 5. Inventories Wholesale inventories, which comprises a significant portion of the Company’s inventory, and KLH’s inventories are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Substantially all of the Company’s inventories consist of finished goods. Effective February 1, 2021, the Company elected to change its method of accounting for retail inventories from the lower of cost or market as determined by the retail inventory method to the lower of cost or net realizable value using the weighted average cost method. The Company believes the new method is preferable as it provides better matching of cost of goods sold with revenue, improves the precision of inventory valuation at the balance sheet dates, and more closely aligns with the valuation methods used throughout the rest of the Company. In addition, the change in inventory valuation better aligns with the way the Company manages its business with a focus on the actual margin realized. The Company applied the change prospectively as of February 1, 2021. The cumulative adjustment as of February 1, 2021 was a decrease of $0.3 million in both inventories 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 The Company accounts for its leases in accordance with 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. 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 2024, the Company recorded a $1.3 million impairment charge related to leasehold improvements, furniture and fixtures, computer hardware and operating lease assets at certain DKNY, Karl Lagerfeld and Vilebrequin stores as a result of the performance at these stores. In fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. In fiscal 2022, the Company recorded a $1.5 million impairment charge related to the leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin 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. 11. Net Income (Loss) Per Common Share Basic net income (loss) per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards and stock options outstanding during the period. Approximately 102,000 and 11,000 shares of common stock have been excluded from the diluted net income per share calculation for the years ended January 31, 2024 and 2022, respectively. All share-based payments outstanding that vest based on the achievement of performance conditions, and for which the respective performance conditions have not been achieved, have been excluded from the diluted per share calculation. The Company issued no shares of common stock in connection with the exercise or vesting of equity awards during the years ended January 31, 2024, 2023 and 2022, respectively. Instead, the Company re-issued 610,631, 387,792 and 194,965 treasury shares in connection with the vesting of equity awards in fiscal 2024, 2023 and 2022, respectively. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income (loss) per share: Year Ended January 31, 2024 2023 2022 (In thousands, except share and per share amounts) Net income (loss) attributable to G-III Apparel Group, Ltd. $ 176,168 $ (133,061) $ 200,593 Basic net income (loss) per share: Basic common shares 45,859 47,653 48,426 Basic net income (loss) per share $ 3.84 $ (2.79) $ 4.14 Diluted net income (loss) per share: Basic common shares 45,859 47,653 48,426 Dilutive restricted stock unit awards and stock options 1,141 — 1,090 Diluted common shares 47,000 47,653 49,516 Diluted net income (loss) per share $ 3.75 $ (2.79) $ 4.05 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 two Excess tax benefits arising from the lapse or exercise of an equity award are recognized in income tax expense. The assumed proceeds from applying the treasury stock method when computing net income (loss) 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 $175.6 million, $187.6 million and $130.2 million for the years ended January 31, 2024, 2023 and 2022, 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 $121.7 million, $131.6 million and $93.1 million for the years ended January 31, 2024, 2023 and 2022, respectively. Prepaid advertising, which represents advance payments to licensors for minimum guaranteed payments for advertising under the Company’s licensing agreements, was $7.3 million and $8.3 million at January 31, 2024 and 2023, 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 2024 2023 2024 2023 (In thousands) Secured Notes 1 $ 400,000 $ 400,000 $ 401,080 $ 380,000 Revolving credit facility 2 — 80,087 — 80,087 Note issued to LVMH 3 — 121,202 — 119,426 Unsecured loans 2 8,791 10,866 8,791 10,866 Overdraft facilities 2 2,651 3,657 2,651 3,657 Foreign credit facility 2 8,939 7,792 8,939 7,792 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 fair value of the Company’s secured notes is based on their current market price as of January 31, 2024. The carrying amount of the Company’s variable rate debt approximates the fair value, as interest rates change with the market rates. Furthermore, the carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash, accounts receivable and accounts payable) also approximates fair value due to the short-term nature of these accounts. The 2% note in the original principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKNY and Donna Karan was recorded on the balance sheet 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 fully recoverable. For assets that are not recoverable, 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 2024, the Company recorded a $1.3 million impairment charge primarily During fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. During fiscal 2022, the Company recorded a $1.5 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. 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 There was no new accounting guidance adopted during the year ended January 31, 2024. Accounting Guidance Issued Being Evaluated for Adoption In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The ASU expands the scope and frequency of segment disclosures and introduces the concept of a “significant expense principle,” which requires entities to disclose significant expense categories and amounts that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of a segment’s profit or loss. The ASU also changes current disclosure requirements by allowing entities to report multiple measures of a segment’s profit or loss, provided the reported measures are used by the CODM to assess performance and allocate resources and that the measure closest to GAAP is also provided. Finally, the ASU requires all segment profit or loss and assets disclosures to be provided on both an annual and interim basis and requires entities to disclose the title and position of the individual identified as the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and shall be applied retrospectively to all periods presented in the financial statements. The Company is currently evaluating the standard and determining the extent of additional interim and annual segment disclosures that may be required. In December 2023, the FASB issued , “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the standard and determining the extent of additional disclosures that may be required. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Jan. 31, 2024 | |
REVENUE RECOGNITION [Abstract] | |
REVENUE RECOGNITION | NOTE 2 REVENUE RECOGNITION 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, except for cooperative advertising, has been classified as a current liability under “customer refund liabilities” on the consolidated balance sheets. The Company classifies cooperative advertising as a reduction of net sales in the consolidated statements of operations and comprehensive income (loss). 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, 2024 and 2023, customer refund liabilities amounted to $84.1 million and $89.8 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 $5.2 million and $5.1 million at January 31, 2024 and 2023, respectively. The Company recognized $4.7 million in revenue for the year ended January 31, 2024 which related to contract liabilities that existed at January 31, 2023. There were no contract assets recorded as of January 31, 2024 and January 31, 2023. Substantially all of the advance payments from licenses as of January 31, 2024 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, 2024 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | NOTE 3 — ALLOWANCE FOR DOUBTFUL ACCOUNTS 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, 2024 and 2023 were: January 31, 2024 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 563,130 $ 704 $ 563,834 Allowance for doubtful accounts (1,408) (63) (1,471) Accounts receivable, net $ 561,722 $ 641 $ 562,363 January 31, 2023 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 692,033 $ 1,227 $ 693,260 Allowance for doubtful accounts (18,237) (60) (18,297) Accounts receivable, net $ 673,796 $ 1,167 $ 674,963 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, 2024, accounts receivable balances of $16.7 million were deemed uncollectable and written off against the allowance primarily due to the bankruptcy of certain department store customers. The Company had the following activity in its allowance for credit losses: January 31, 2024 Wholesale Retail Total (In thousands) Balance as of January 31, 2023 $ (18,237) $ (60) $ (18,297) Provision for credit losses 166 (3) 163 Accounts written off as uncollectible 16,663 — 16,663 Balance as of January 31, 2024 $ (1,408) $ (63) $ (1,471) January 31, 2023 Wholesale Retail Total (In thousands) Balance as of January 31, 2022 $ (17,307) $ (84) $ (17,391) Provision for credit losses (1,002) 24 (978) Accounts written off as uncollectible 72 — 72 Balance as of January 31, 2023 $ (18,237) $ (60) $ (18,297) |
INVENTORIES
INVENTORIES | 12 Months Ended |
Jan. 31, 2024 | |
INVENTORIES [Abstract] | |
INVENTORIES | NOTE 4 — INVENTORIES Wholesale inventories, which comprise a significant portion of the Company’s inventory, and KLH inventories are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Retail and 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, was $16.5 million and $19.2 million at January 31, 2024 and 2023, respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the consolidated balance sheets as of January 31, 2024 and 2023. Inventory held on consignment by the Company’s customers totaled $6.6 million at both January 31, 2024 and 2023. 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, 2024 | |
PROPERTY AND EQUIPMENT [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5 — PROPERTY AND EQUIPMENT Property and equipment consist of: January 31, Estimated life 2024 2023 (In thousands) Machinery and equipment 5 years $ 2,586 $ 2,437 Leasehold improvements 3-13 years 91,329 83,768 Furniture and fixtures 3-5 years 134,540 130,340 Computer equipment and software 2-5 years 59,957 52,293 288,412 268,838 Less: accumulated depreciation (233,328) (215,096) $ 55,084 $ 53,742 Depreciation expense was $22.0 million, $23.5 million and $23.6 million for the years ended January 31, 2024, 2023 and 2022, respectively. For the year ended January 31, 2024, the Company recorded a $0.8 million impairment charge 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, 2024 | |
LEASES [Abstract] | |
LEASES | NOTE 6 LEASES The Company accounts for its leases in accordance with ASC 842. 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 or payable at commencement. 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. Most leases are for a term of one one Certain of the Company’s lease agreements include contingent rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Contingent rent is accrued each period as the liabilities are incurred. 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, 2024 and 2023 consist of the following: Leases Classification January 31, 2024 January 31, 2023 (In thousands) Assets Operating Operating lease assets $ 216,886 $ 239,665 Total lease assets $ 216,886 $ 239,665 Liabilities Current operating Current operating lease liabilities $ 56,587 $ 52,917 Noncurrent operating Noncurrent operating lease liabilities 178,247 204,974 Total lease liabilities $ 234,834 $ 257,891 During fiscal 2024, the Company recorded a $0.3 million impairment charge related to the operating lease assets at certain DKNY, Karl Lagerfeld and Vilebrequin stores as a result of the performance at these stores. During fiscal 2023, the Company recorded a $0.7 million impairment charge related to the operating lease assets at certain DKNY stores as a result of the performance at these stores. During fiscal 2022, the Company recorded a $0.2 million impairment charge related to the operating lease assets at certain Vilebrequin and DKNY stores as a result of the performance at 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. The Company recorded lease costs of $73.5 million, $64.9 million and $55.7 million during the years ended January 31, 2024, 2023 and 2022, respectively. Lease costs are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations and comprehensive income (loss). The Company recorded variable lease costs and short-term lease costs of $24.1 million, $17.1 million and $10.5 million for the years ended January 31, 2024, 2023 and 2022, respectively. Short-term lease costs are immaterial. As of January 31, 2024, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2029 and thereafter are as follows: Year Ending January 31, Amount (In thousands) 2025 $ 73,297 2026 61,150 2027 48,552 2028 39,004 2029 26,150 After 2029 40,171 Total lease payments $ 288,324 Less: Interest 53,490 Present value of lease liabilities $ 234,834 As of January 31, 2024, there are no material leases that are legally binding but have not yet commenced. As of January 31, 2024, the weighted average remaining lease term related to operating leases is 5.0 years. The weighted average discount rate related to operating leases is 6.8%. Cash paid for amounts included in the measurement of operating lease liabilities is $76.7 million and $69.8 million as of January 31, 2024 and 2023, respectively. Right-of-use assets obtained in exchange for lease obligations were $35.0 million and $126.8 million during the years ended January 31, 2024 and 2023, respectively. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Jan. 31, 2024 | |
INTANGIBLE ASSETS [Abstract] | |
INTANGIBLE ASSETS | NOTE 7 — INTANGIBLE ASSETS Intangible assets consist of: January 31, 2024 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,152 $ (17,930) $ 1,222 Customer relationships 15-17 years 52,592 (25,903) 26,689 Other 5-10 years 9,496 (5,731) 3,765 Total finite-lived intangible assets $ 81,240 $ (49,564) $ 31,676 Indefinite-lived intangible assets Trademarks 630,333 Total indefinite-lived intangible assets 630,333 Total intangible assets, net $ 662,009 January 31, 2023 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 18,955 $ (17,314) $ 1,641 Customer relationships 15-17 years 52,392 (22,931) 29,461 Other 5-10 years 8,583 (4,843) 3,740 Total finite-lived intangible assets $ 79,930 $ (45,088) $ 34,842 Indefinite-lived intangible assets Trademarks 628,156 Total indefinite-lived intangible assets 628,156 Total intangible assets, net $ 662,998 Amortization expense Amortization expense with respect to finite-lived intangibles amounted to $5.4 million, $3.9 million and $3.7 million for the years ended January 31, 2024, 2023 and 2022, 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) 2025 $ 5,106 2026 3,984 2027 3,578 2028 3,264 2029 3,274 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 There was no goodwill recognized during the year ended January 31, 2024. Changes in the amounts of goodwill for the year ended January 31, 2023 is summarized by reportable segment as follows (in thousands): Wholesale Retail Total January 31, 2022 $ 262,527 $ — $ 262,527 Acquisition of Karl Lagerfeld 84,336 — 84,336 Acquisition of other foreign business 3,523 — 3,523 Impairment (347,172) — (347,172) Currency translation (3,214) — (3,214) January 31, 2023 $ — $ — $ — Im pairment 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, if applicable, 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. The carrying value of the Company’s goodwill was fully impaired in fiscal 2023 as a result of our annual impairment test. There was no new goodwill recognized in fiscal 2024. Fiscal 2023 Annual Goodwill Impairment Test The Company performed its annual test of its wholesale reporting unit as of January 31, 2023 by electing to bypass the qualitative assessment and proceed directly to the quantitative impairment test using a discounted cash flows method to estimate the fair value of its wholesale reporting unit. The Company made this election due to its decline in market capitalization. The fair value of the wholesale reporting unit for goodwill impairment testing was determined using an income approach and validated using a market approach. The income approach was based on discounted projected future (debt-free) cash flows for the reporting unit. The discount rate applied to these cash flows was based on the weighted average cost of capital for the wholesale reporting unit, which takes market participant assumptions into consideration, inclusive of a Company-specific 7.5% risk premium to account for the additional risk of uncertainly perceived by market participants related to the Company’s overall cash flows. Estimated future operating cash flows were discounted at a rate of 17.5% to account for the relative risks of the estimated future cash flows. For the market approach, used to validate the results of the income approach method, the Company used the guideline company method, which analyzes market multiples of adjusted earnings before interest, taxes, depreciation and amortization for a group of comparable public companies. As a result of the Company’s fiscal 2023 annual impairment test, the Company recorded a $347.2 million non-cash impairment charge during its fourth quarter of fiscal 2023 to fully impair the carrying value of its goodwill, which was included in assets impairments in the Company’s consolidated statements of operations and comprehensive income (loss). This impairment charge was recorded to the Company’s wholesale operations segment. Fiscal 2022 Annual Goodwill Impairment Test The Company performed its annual test of its wholesale reporting unit using a qualitative review as of January 31, 2022 and determined that no impairment existed at that date. The result of the Company’s annual test determined that the estimated fair value of its wholesale reporting unit was substantially in excess of its carrying value. Fiscal 2024 Annual Indefinite-Lived Intangible Assets Impairment Test The Company performed its annual test of its indefinite-lived trademarks as of January 31, 2024 using a qualitative evaluation or a quantitative impairment 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. The Company’s fiscal 2024 testing determined that the fair value of each of its indefinite-lived intangible assets substantially exceeded its carrying value except for its Sonia Rykiel trademark. As a result of the fiscal 2024 annual impairment test, the Company recorded a $5.9 million non-cash impairment Fiscal 2023 Annual Indefinite-Lived Intangible Assets Impairment Test The Company performed its annual test of its indefinite-lived trademarks as of January 31, 2023 using a qualitative evaluation or a quantitative impairment 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. The Company determined that the fair values of each of its indefinite-lived intangible assets substantially exceeded its carrying value and, therefore, there were no impairments identified as of January 31, 2023 as a result of these tests. Fiscal 2022 Annual Indefinite-Lived Intangible Assets Impairment Test The Company performed its annual test of its indefinite-lived trademarks using a qualitative review as of January 31, 2022 and determined that no impairment existed at that date. The result of the Company’s annual test determined that the estimated fair value of its indefinite-lived trademarks were substantially in excess of their carrying values. The Company’s indefinite-lived trademark balance is primarily composed of the Donna Karan/DKNY trademarks that were acquired in fiscal 2017 and the Karl Lagerfeld trademark that was acquired in fiscal 2023. 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, 2024 | |
NOTES PAYABLE AND OTHER LIABILITIES [Abstract] | |
NOTES PAYABLE AND OTHER LIABILITIES | NOTE 8 — NOTES PAYABLE AND OTHER LIABILITIES Long-term debt Long-term debt consists of the following: January 31, 2024 January 31, 2023 (in thousands) Secured Notes $ 400,000 $ 400,000 Revolving credit facility — 80,087 Note issued to LVMH — 125,000 Unsecured loans 8,791 10,866 Overdraft facilities 2,651 3,657 Foreign credit facility 8,939 7,792 Subtotal 420,381 627,402 Less: Net debt issuance costs (1) (2,548) (4,246) Debt discount — (3,798) Current portion of long-term debt (15,026) (135,518) Total $ 402,807 $ 483,840 (1) Does not include the debt issuance costs, net of amortization, totaling $2.4 million and $4.0 million as of January 31, 2024 and 2023, 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 In August 2020, the Company completed a private debt offering of $400 million aggregate principal amount of its 7.875% Senior Secured Notes due August 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 were used (i) to repay the $300 million that was outstanding under the Company’s prior term loan facility due 2022 (the “Term Loan”), (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. 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 ABL Credit Agreement, or certain future capital markets indebtedness of the Company or the 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 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. 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. 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. Second Amended and Restated ABL Credit Agreement In August 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 second amended and restated credit agreement (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 Notes are 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 certain of its subsidiaries (the “Guarantors”), are Loan Guarantors under the ABL Credit Agreement. The ABL Credit Agreement refinanced, amended and restated 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”). The Prior Credit Agreement provided for borrowings of up to $650 million and was due to expire in December 2021. The ABL Credit Agreement extended the maturity date to August 2025, subject to a springing maturity date if, subject to certain conditions, the Notes are 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 originally bore 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. In April 2023, the Company amended the ABL Credit Agreement to replace LIBOR with the Adjusted Term Secured Overnight Financing Rate (“SOFR”) as a successor rate. All other material terms and conditions of the ABL Credit Agreement were unchanged. Borrowings under the amended ABL Credit Agreement now bear interest, at the Borrower’s option, at the alternate base rate (defined as, for a given day, the greatest of (i) the “prime rate” in effect on such day, (ii) the NYFRB Rate (as defined in the amendment) in effect on such day plus 0.5% and (iii) the Adjusted Term SOFR (defined as an interest rate per annum equal to the Term SOFR for such interest period plus 0.10%) for a one-month interest period as published two business days prior to such day plus 1%) plus an applicable spread or the Adjusted Term SOFR Rate plus an applicable spread. The Company applied certain provisions and practical expedients of ASC 848 – Reference Rate Reform related to the transition from LIBOR to SOFR. As of January 31, 2024, interest under the ABL Credit Agreement was being paid at an average rate of 6.62% per annum. 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 to, subject to specified exceptions, 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, 2024, the Company was in compliance with these covenants. As of January 31, 2024, the Company had no borrowings outstanding under the ABL Credit Agreement. The ABL credit agreement also includes amounts available for letters of credit. As of January 31, 2024, there were outstanding trade and standby letters of credit amounting to $4.0 million and $2.9 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 recorded $8.0 million of debt issuance costs related to the ABL Credit Agreement. As permitted under ASC 835, the debt issuance costs have been deferred and are presented as an asset which is amortized ratably over the term of the ABL Credit Agreement. LVMH Note As a portion of the consideration for the acquisition of DKNY and Donna Karan, the Company issued to LVMH a junior lien secured promissory note in the principal amount of $125.0 million that bore interest at the rate of 2% per year. $75.0 million of the principal amount of the LVMH Note was paid on June 1, 2023 and the remaining $50.0 million of such principal amount was paid on December 1, 2023. ASC 820 requires the note to be recorded at fair value at issuance. As a result, the Company recorded a $40.0 million debt discount. This discount was amortized as interest expense using the effective interest method over the term of the LVMH Note. Unsecured Loans Several of the Company’s foreign entities borrow funds under various unsecured loans of which a portion is to provide funding for operations in the normal course of business while other loans are European state backed loans as part of COVID-19 relief programs. In the aggregate, the Company is currently required to make quarterly installment payments of principal in the amount of €0.6 million under these loans. Interest on the outstanding principal amount of the unsecured loans accrues at a fixed rate equal to 0% to 5.0% per annum, payable on either a quarterly or monthly basis. As of January 31, 2024, the Company had an aggregate outstanding balance of €8.0 million ($8.8 million) under these 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, 2024, TRB had an aggregate of €2.4 million ($2.7 million) drawn under these various facilities. Foreign Credit Facility KLH has a credit agreement with ABN AMRO Bank N.V. with a credit limit of €15.0 million which is secured by specified assets of KLH. Borrowings bear interest at the Euro Interbank Offered Rate (“EURIBOR”) plus a margin of 1.7%. As of January 31, 2024, KLH had €8.1 million ($8.9 million) of borrowings outstanding under this credit facility. Future Debt Maturities As of January 31, 2024, the Company’s mandatory debt repayments mature in the years ending up to January 31, 2029 or thereafter. Year Ending January 31, Amount (In thousands) 2025 $ 15,026 2026 402,385 2027 1,535 2028 730 2029 and thereafter 705 Accrued expenses Accrued expenses consist of the following: January 31, 2024 January 31, 2023 (in thousands) Accrued bonuses $ 38,298 $ 16,831 Other accrued expenses 102,237 98,755 Total $ 140,535 $ 115,586 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jan. 31, 2024 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 9 — INCOME TAXES The income tax provision is comprised of the following: Year Ended January 31, 2024 2023 2022 (In thousands) Current Federal $ 42,376 $ 27,982 $ 39,283 State and city 9,768 8,278 4,484 Foreign 9,971 14,647 5,991 62,115 50,907 49,758 Deferred Federal 6,469 (50,764) 17,090 State and city 878 (4,457) 2,116 Foreign (3,603) 526 1,911 3,744 (54,695) 21,117 Income tax expense (benefit) $ 65,859 $ (3,788) $ 70,875 Income (loss) before income taxes United States $ 218,528 $ (106,086) $ 234,034 Non-United States 22,071 (32,084) 36,942 $ 240,599 $ (138,170) $ 270,976 Effective January 1, 2018, the Tax Cuts and Jobs Act (“TCJA”) subjects a U.S. parent company to current tax on its global intangible low-taxed income (“GILTI”). For fiscal 2024, the Company has elected to treat the tax effect of GILTI as a current period expense. The significant components of the Company’s net deferred tax liabilities at January 31, 2024 and 2023 are summarized as follows: 2024 2023 (In thousands) Deferred income tax assets: Compensation $ 3,444 $ 879 Inventory 13,756 12,197 Provision for bad debts and sales allowances 11,918 15,237 Supplemental employee retirement plan 792 688 Net operating loss 40,183 33,749 Operating lease liability 52,341 56,519 Foreign tax credit carryforward 5,594 3,865 Section 174 R&D amortization 1,016 478 Other 4,919 — Gross deferred income tax assets 133,963 123,612 Less: valuation allowance (39,140) (33,087) Net deferred income tax assets 94,823 90,525 Deferred income tax liabilities: Depreciation and amortization (15,821) (6,268) Intangibles (51,071) (48,760) Operating lease asset (46,546) (50,995) Accrued expenses — (57) Prepaid expenses and other (2,149) (2,279) Other (2,724) (560) Total deferred income tax liabilities (118,311) (108,919) Net deferred income tax liabilities $ (23,488) $ (18,394) The Company intends to indefinitely reinvest substantially all of the undistributed earnings of its foreign subsidiaries. The total undistributed earnings of the Company’s foreign subsidiaries that are considered to be indefinitely reinvested were approximately $150 million as of January 31, 2024. Upon distribution of these earnings in the form of dividends or otherwise, 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 these undistributed foreign earnings. On December 12, 2022, the Council of the European Union (“EU”) announced that EU member states reached an agreement to implement the minimum tax component of the Organization for Economic Co-operation and Development’s international tax reform initiative, known as Pillar Two. The Pillar Two Model Rules provide for a global minimum tax of 15% for multinational enterprise groups, and is expected to be effective for our fiscal year ending January 31, 2025. While the Company does not expect these rules to have a material impact on its effective tax rate or financial results, the Company continues to monitor evolving tax legislation in the jurisdictions in which it operates. 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: 2024 2023 2022 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 3.7 (2.1) 2.0 Permanent differences 2.8 (2.1) 2.8 U.S. tax on foreign earnings 1.8 (6.0) 1.5 Foreign tax rate differential 1.0 1.2 — Foreign tax credit (2.9) 7.9 (3.4) Valuation allowance 0.4 (3.1) 0.8 Goodwill impairment — (17.3) — Non-taxable capital gain — 5.1 — Other, net (1) (0.4) (1.9) 1.5 Actual provision for income taxes 27.4 % 2.7 % 26.2 % (1) Prior year share-based payments have been reclassed to Other, net for presentation purposes. The Company’s effective tax rate increased to 27.4% in fiscal 2024 compared to 2.7% in fiscal 2023. This increase in the Company’s effective tax rate is primarily the result of the Company’s charges related to goodwill impairment of $347.2 million which significantly decreased pretax book income in relation to its tax expense in fiscal 2023, as well as operating losses generated in certain foreign jurisdictions during fiscal 2024 that are not expected to be realized. The Company’s effective tax rate decreased to 2.7% in fiscal 2023 compared to 26.2% in fiscal 2022. This decrease in the Company’s effective tax rate is primarily the result of the Company’s charges related to goodwill impairment of $347.2 million which significantly decreased pretax book income in relation to its tax expense. At January 31, 2024, the Company had state net operating loss carryforwards of $3.9 million, of which $2.1 million carryforward indefinitely and the remainder primarily expires in 2036 through 2041. In addition, the Company had foreign net operating loss carryforwards of $36.3 million, with most jurisdictions having indefinite carryforward periods. At January 31, 2024, the Company also has federal foreign tax credit carryforwards of $5.6 million, which expire in 2029 through 2034. 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, 2024, the Company recorded an increase to its valuation allowance of $6.0 million against its deferred tax assets, of which $1.7 million related to an increase in the Company’s deferred tax assets and related valuation allowance for excess foreign tax credits, $6.7 million related to a net increase in the Company’s deferred tax assets and related valuation allowance for standalone state tax losses and foreign retail losses and $2.4 million related to a decrease in the Company’s valuation allowance for foreign losses expected to be utilized. Unrecognized Tax Benefits A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows: 2024 2023 2022 (In thousands) Balance at February 1, $ 3,582 $ 2,442 $ 2,293 Additions based on tax positions related to the current year 57 245 — Additions for tax positions of prior years 1,015 895 595 Reductions for tax positions of prior years (413) — — Lapses of statutes of limitations — — (446) Balance at January 31, $ 4,241 $ 3,582 $ 2,442 The Company accounts for uncertain income tax positions in accordance with ASC 740 — Income Taxes. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of January 31, 2024, there was an increase in the unrecognized tax position reserve of $0.7 million related to state, local and foreign income tax return filings. 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 operations and comprehensive income (loss). 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 2016 and forward. The Company is currently under audit examination by New York for fiscal years 2016 through 2018, France for fiscal years 2019 through 2021 and the Netherlands for fiscal year 2021. The Company believes that it is reasonably possible there will be a reduction in its unrecognized income tax benefits related to foreign exposures, prior to any annual increase, of $2.1 million during the next twelve months due to the expiration of applicable statues of limitations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 — 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 $154.2 million, $162.9 million and $145.1 million for the years ended January 31, 2024, 2023 and 2022, 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 $36.7 million, $45.2 million and $41.2 million for the years ended January 31, 2024, 2023 and 2022, 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) 2025 108,615 2026 91,259 2027 58,111 2028 36,779 2029 11,254 Thereafter 2,308 $ 308,326 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 accordance with a favorable ruling by the Canadian International Trade Tribunal, in fiscal 2023 and fiscal 2024, G-III Canada received refunds from the of CAD $6.5 million ( $4.8 million), including interest and net of a dutiable design assist, for amounts paid by G-III Canada to the CBSA between February 1, 2014 and January 31, 2018. G-III Canada has filed adjustment requests with the CBSA for the period from February 1, 2018 to January 31, 2022 to amend declared dutiable values. These amendments resulted in an additional refund of duty and interest, net of refunds already received, from the CBSA of approximately CAD $8.2 million ( $6.1 million) plus related interest. G-III Canada received the remaining refund due from the CBSA in February 2024. These amounts are recorded within prepaid expenses and other current assets in the consolidated balance sheets. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jan. 31, 2024 | |
STOCKHOLDERS' EQUITY, [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 11 — STOCKHOLDERS’ EQUITY Share Repurchase Program In August 2023, our Board of Directors authorized an increase in the number of shares covered by the Company’s share repurchase program to an aggregate amount of 10,000,000 shares. Prior to this increase, the Company had 6,813,851 authorized shares under this program. 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. During fiscal 2024, pursuant to this program, the Company acquired 1,598,568 shares of its common stock for an aggregate purchase price of $26.1 million. During fiscal 2023, pursuant to this program, the Company acquired 1,587,581 shares of its common stock for an aggregate purchase price of $26.9 million. During fiscal 2022, pursuant to this program, the Company acquired 656,213 shares of its common stock for an aggregate purchase price of $17.3 million. As of January 31, 2024, we had 10,000,000 authorized shares remaining under this program. Long-Term Incentive Plan On October 10, 2023, the Company’s shareholders approved the 2023 Long-Term Incentive Plan (the “2023 Plan”), which replaced the Company’s Amended and Restated 2015 Long-Term Incentive Plan (the “2015 Plan”). The 2023 Plan authorizes the issuance of 2.8 million shares. Shares available under the 2015 Plan, which would otherwise have expired on June 9, 2025, were not carried over into the 2023 Plan and no further grants will be made under the 2015 Plan. Outstanding awards issued prior to August 18, 2023 will continue to remain subject to the terms of the 2015 Plan. As of January 31, 2024, the Company had 2,404,510 shares available for grant under the 2023 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. Restricted stock units (“RSUs”) generally (i) cliff vest after three years or (ii) vest over a three year period. Performance based restricted stock units (“PRSUs”) 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. Performance stock units (“PSUs”) that were granted to executives generally 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. Special performance stock units (“SPSUs”) were granted to Morris Goldfarb, the Company’s Chairman and Chief Executive Officer, in fiscal 2024 under the terms of his new employment agreement. These SPSUs may be earned if certain stock price, relative Total Shareholder Return target and service conditions are achieved. These awards may vest from time to time beginning on the third anniversary of the effective date of the award through the fifth anniversary of the effective date of the award. 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, 2021 1,393,268 $ 12.47 466,830 $ 34.17 Granted 326,791 $ 31.52 176,212 $ 31.43 Vested (201,260) $ 20.43 (125,934) $ 30.23 Cancelled (2,650) $ 33.46 — $ — Unvested as of January 31, 2022 1,516,149 $ 15.48 517,108 $ 34.20 Granted 1,076,509 $ 26.88 308,317 $ 31.42 Vested (656,814) $ 29.11 (78,998) $ 35.77 Cancelled (17,599) $ 31.21 (261,898) $ 35.60 Unvested as of January 31, 2023 1,918,245 $ 17.07 484,529 $ 31.41 Granted 572,147 $ 16.47 1,030,381 $ 21.15 Vested (1,153,872) $ 10.61 — $ — Cancelled (43,445) $ 23.39 — $ — Unvested as of January 31, 2024 1,293,075 $ 22.35 1,514,910 $ 24.44 Restricted Stock Units RSUs 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 RSUs are based on the quoted market price on the date of grant. Compensation expense for RSUs 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 PRSUs, PSUs and SPSUs. PRSUs 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. PRSUs generally vest over a two Performance stock units (“PSUs”) were granted to executives beginning 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 conditions must be satisfied for vesting to occur. PSUs are expensed over the service period under the accelerated attribution method and based on an estimated percentage of achievement of certain pre-established goals. Special performance stock units (“SPSUs”) were granted to Morris Goldfarb, the Company’s Chairman and Chief Executive Officer, in fiscal 2024 under the terms of his employment agreement entered into in August 2023. These SPSUs may be earned if certain stock price, relative Total Shareholder Return target and service conditions are achieved. These awards may vest from time to time beginning on the third anniversary of the effective date of the award through the fifth anniversary of the effective date of the award. For restricted stock units with market conditions, the Company estimates the grant date fair value using a Monte Carlo simulation model. This valuation methodology utilizes the closing price of the Company’s common stock on grant date and several key assumptions, including expected volatility of the Company’s stock price, and risk-free rates of return. This valuation is performed with the assistance of a third party valuation specialist. SPSUs are expensed over the service period under the accelerated attribution method. 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 $17.2 million, $32.5 million and $17.4 million in share-based compensation expense for the years ended January 31, 2024, 2023 and 2022 respectively, related to restricted stock unit grants. At January 31, 2024, 2023 and 2022, unrecognized costs related to the restricted stock units totaled $32.8 million, $20.8 million and $21.2 million, respectively. The total fair value of awards for which restrictions lapsed was $23.0 million, $20.4 million and $10.8 million as of January 31, 2024, 2023 and 2022, respectively. Stock Options 2024 2023 2022 Weighted Weighted Weighted Average Average Average Shares Exercise Shares Exercise Shares Exercise Stock options outstanding at beginning of year — $ — 10,000 $ 18.11 18,245 $ 23.63 Exercised — $ — — $ — — $ — Granted — $ — — $ — — $ — Cancelled or forfeited — $ — (10,000) $ 18.11 (8,245) $ 30.32 Stock options outstanding at end of year — $ — — $ — 10,000 $ 18.11 Exercisable — $ — — $ — 10,000 $ 18.11 |
CONCENTRATION
CONCENTRATION | 12 Months Ended |
Jan. 31, 2024 | |
CONCENTRATION [Abstract] | |
CONCENTRATION | NOTE 12 — CONCENTRATION Three customers in the wholesale operations segment accounted for approximately 19.2%, 13.6% and 10.1%, respectively, of the Company’s net sales for the year ended January 31, 2024. Two customers in the wholesale operations segment accounted for approximately 21.6% and 15.4%, respectively, of the Company’s net sales for the year ended January 31, 2023. Three customers in the wholesale operations segment accounted for approximately 23.9%, 14.8% and 12.7%, respectively, of the Company’s net sales for the year ended January 31, 2022. Three customers in the wholesale operations segment accounted for approximately 21.4%, 13.3%, and 12.2%, respectively, of the Company’s net accounts receivable as of January 31, 2024. Four customers in the wholesale operations segment accounted for approximately 22.9%, 13.2%, 12.3% and 11.5%, respectively, of the Company’s net accounts receivable as of January 31, 2023. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Jan. 31, 2024 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 13 — 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 $4.3 million, $4.0 million and $0.3 million for the years ended January 31, 2024, 2023 and 2022, respectively. Effective May 2020, the Company temporarily suspended 401(k) matching contributions due to COVID-19. The Company reinstated 401(k) matching contributions effective January 1, 2022. |
SEGMENTS
SEGMENTS | 12 Months Ended |
Jan. 31, 2024 | |
SEGMENTS [Abstract] | |
SEGMENTS | NOTE 14 — 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 to retailers under owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital outlets. Wholesale revenues also include revenues from license agreements related to the DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, G.H. Bass, Andrew Marc and Sonia Rykiel trademarks owned by the Company. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, which consists primarily of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather. Substantially all DKNY and Karl Lagerfeld Paris stores are operated as outlet stores. The following segment information, in thousands, is presented for the fiscal years ended: January 31, 2024 Wholesale Retail Elimination (1) Total Net sales $ 3,009,614 $ 148,428 $ (59,800) $ 3,098,242 Cost of goods sold 1,839,183 77,012 (59,800) 1,856,395 Gross profit 1,170,431 71,416 — 1,241,847 Selling, general and administrative expenses 826,921 97,302 — 924,223 Depreciation and amortization 22,505 5,018 — 27,523 Asset impairments 7,140 (382) — 6,758 Operating profit (loss) $ 313,865 $ (30,522) $ — $ 283,343 January 31, 2023 Wholesale Retail Elimination (1) Total Net sales $ 3,160,025 $ 137,231 $ (70,528) $ 3,226,728 Cost of goods sold 2,127,318 68,801 (70,528) 2,125,591 Gross profit 1,032,707 68,430 — 1,101,137 Selling, general and administrative expenses 736,820 96,331 — 833,151 Depreciation and amortization 23,980 3,782 — 27,762 Asset impairments 347,722 1,964 — 349,686 Operating profit (loss) $ (75,815) $ (33,647) $ — $ (109,462) January 31, 2022 Wholesale Retail Elimination (1) Total Net sales $ 2,710,787 $ 117,656 $ (61,905) $ 2,766,538 Cost of goods sold 1,782,533 57,721 (61,905) 1,778,349 Gross profit 928,254 59,935 — 988,189 Selling, general and administrative expenses 567,949 80,066 — 648,015 Depreciation and amortization 24,023 3,603 — 27,626 Asset impairments 368 1,087 — 1,455 Operating profit (loss) $ 335,914 $ (24,821) $ — $ 311,093 (1) Represents intersegment sales to the Company’s retail operations segment . The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows: January 31, 2024 2023 2022 (In thousands) Licensed brands $ 1,653,259 $ 1,891,522 $ 1,820,491 Proprietary brands 1,356,355 1,268,503 890,296 Wholesale net sales (1) $ 3,009,614 $ 3,160,025 $ 2,710,787 Licensed brands $ — $ — $ 39,604 Proprietary brands 148,428 137,231 78,052 Retail net sales $ 148,428 $ 137,231 $ 117,656 (1) As of May 31, 2022, the Company acquired the remaining interests in KLH (Karl Lagerfeld branded product) that it did not already own. Net sales of Karl Lagerfeld product were included in licensed brands net sales of the wholesale operations segment through May 31, 2022. Subsequent to May 31, 2022, net sales of Karl Lagerfeld product are included in proprietary brands net sales of the wholesale 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, 2024 2023 (In thousands) Wholesale $ 1,562,203 $ 1,746,314 Retail 104,272 127,047 Corporate 1,014,689 839,044 Total Assets $ 2,681,164 $ 2,712,405 The total net sales and long-lived assets by geographic region are as follows: 2024 2023 2022 Long-Lived Long-Lived Long-Lived Geographic Region Net Sales Assets Net Sales Assets Net Sales Assets United States $ 2,400,191 $ 605,548 $ 2,609,710 $ 633,799 $ 2,365,919 $ 938,947 Non-United States 698,051 415,298 617,018 426,106 400,619 150,724 $ 3,098,242 $ 1,020,846 $ 3,226,728 $ 1,059,905 $ 2,766,538 $ 1,089,671 Capital expenditures for locations outside of the United States totaled $15.0 million, $10.5 million and $4.3 million for the years ended January 31, 2024, 2023 and 2022, respectively. |
KARL LAGERFELD ACQUISITION
KARL LAGERFELD ACQUISITION | 12 Months Ended |
Jan. 31, 2024 | |
KARL LAGERFELD ACQUISITION [Abstract] | |
KARL LAGERFELD ACQUISITION | NOTE 15 — KARL LAGERFELD ACQUISITION On April 29, 2022, the Company entered into a share purchase agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire the remaining 81% interest in KLH that it did not already own, for an aggregate consideration of €193.4 million (approximately $207.6 million) in cash, after taking into account certain adjustments. The acquisition closed on May 31, 2022. The Company funded the purchase price from cash on hand. On May 31, 2022, the effective date of the acquisition, the Company’s previously held 19% investment in KLH and 49% investment in KLNA were remeasured at fair value using a market approach based on the purchase price of the acquisition and a discount for lack of control related to the Company’s previously held minority investment in KLH. As a result of this remeasurement, a non-cash gain of $27.1 million was recorded as of the effective date of the acquisition. The addition of KLH to the Company’s portfolio of owned brands advances several of its strategic initiatives, including increasing its direct ownership of brands and their licensing opportunities and further diversifying its global presence. This acquisition offers additional opportunities to expand the Company’s international growth by further developing its European-based brands, which also include Vilebrequin and Sonia Rykiel. The Company believes that Karl Lagerfeld’s existing digital channel presence provides an opportunity for the Company to enhance its omni-channel business and further accelerate its digital initiatives. Purchase Price Consideration The purchase price of $207.6 million, after taking into account certain adjustments, was paid from cash on hand. The purchase price has been revised to include adjustments in accordance with the Purchase Agreement. The initial purchase price and the valuation of the prior minority ownership for the acquisition of KLH is as follows (in thousands): Cash disbursed for the acquisition of KLH $ 168,592 Plus: cash acquired 38,499 Plus: aggregate adjustments to purchase price 516 Initial purchase price 207,607 Plus: fair value of prior minority ownership 102,858 Total consideration $ 310,465 Allocation of the Purchase Price Consideration The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: (In thousands) Cash and cash equivalents $ 38,499 Accounts receivable, net 28,449 Inventories 33,489 Prepaid income taxes 1,100 Prepaid expenses and other current assets 3,347 Property, plant and equipment, net 11,545 Operating lease assets 55,753 Goodwill 84,336 Trademarks 178,823 Customer relationships 4,294 Deferred income taxes 5,131 Other long-term assets 2,237 Total assets acquired $ 447,003 Notes payable 3,606 Accounts payable 9,175 Accrued expenses 15,261 Operating lease liabilities 58,942 Income taxes payable 2,099 Deferred income taxes 42,222 Other long-term liabilities 5,233 Total liabilities assumed $ 136,538 Total fair value of acquisition consideration $ 310,465 During the year ended January 31, 2023, the Company recorded adjustments to the fair values of assets acquired and liabilities assumed at the date of acquisition based on additional information obtained. The Company recorded an additional $36.9 million in both total assets and total liabilities The Company recognized goodwill for tax purposes of approximately $84.3 million in connection with the acquisition of KLH. The goodwill was assigned to the Company’s wholesale operations reporting unit. In fiscal 2023, as a result of the Company’s annual impairment test, the Company recorded a $347.2 million non-cash impairment charge to fully impair the carrying value of its goodwill. This charge included all of the $84.3 million of goodwill previously recognized in connection with the acquisition of KLH. The Company made an election under Internal Revenue Code Section 338(g) to amortize the total goodwill and intangible assets over a 15 year period for income tax purposes in the United States. The fair values assigned to identifiable intangible assets acquired were based on assumptions and estimates made by management using unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. The fair values of the trademarks were determined using the relief from royalty method and the fair value of the customer relationships were determined using an income approach. The Company classifies these intangibles as Level 3 fair value measurements. Identifiable intangible assets acquired include the following (in thousands): Weighted Average Fair Value Amortization Period Trademarks $ 178,823 — Customer relationships 4,294 8 $ 183,117 — The Company recognized approximately $5.6 million of acquisition related costs that were expensed in fiscal 2023 and fiscal 2022. The fiscal 2023 and fiscal 2022 acquisition and integration costs are recorded within selling, general and administrative expenses in the Company’s consolidated statements of operations and comprehensive income (loss) for the fiscal years ended January 31, 2023 and January 31, 2022, respectively. The fair value of assets acquired and liabilities assumed were finalized as of May 31, 2023. |
EQUITY INVESTMENT
EQUITY INVESTMENT | 12 Months Ended |
Jan. 31, 2024 | |
EQUITY INVESTMENT | |
EQUITY INVESTMENT | NOTE 16 — 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. In May 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own, and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. Prior to May 2022, the investment in KLH was accounted for under the equity method of accounting and was reflected in Investment in Unconsolidated Affiliates on the consolidated balance sheets at January 31, 2022. 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. In May 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. Prior to May 2022, the investment in KLNA was accounted for under the equity method of accounting and was reflected in Investment in Unconsolidated Affiliates on the consolidated balance sheets at January 31, 2022. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jan. 31, 2024 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 17 — RELATED PARTY TRANSACTIONS Transactions with Employees In June 2023, the Company entered into a stock sale and purchase agreement (the “Agreement”) with Sammy Aaron, the Company’s Vice Chairman and President and a Director of the Company. Pursuant to the Agreement, the Company purchased from Mr. Aaron 208,943 shares of its common stock for $4.1 million at a price equal to the closing price of the Company’s shares on the date of the Agreement. Transactions with E-Commerce Retailer In fiscal 2023, the Company made a $25.0 million investment in an e-commerce retailer. The Company’s Chief Executive Officer and Executive Vice President indirectly own 1.4% of the e-commerce retailer through their ownership in a private investment partnership. The Company had no material transactions with the e-commerce retailer during the years ended January 31, 2024 and 2023. Transactions with KL North America Prior to May 30, 2022, G-III owned a 49% ownership interest in KLNA and was considered a related party of KLNA (see Note 16). 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 $3.6 million during the period of February 1, 2022 through May 30, 2022 prior to KLNA becoming a consolidated indirect wholly-owned subsidiary of the Company. The Company incurred royalty and advertising expense of $8.1 million for the year ended January 31, 2022. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jan. 31, 2024 | |
Valuation And Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNT | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Years ended January 31, 2024, 2023 and 2022 Balance at Charges to Balance at Beginning Cost and End of Description of Period Expenses Deductions (1) Period (In thousands) Year ended January 31, 2024 Deducted from asset accounts Allowance for doubtful accounts $ 18,297 $ (163) $ 16,663 $ 1,471 Reserve for returns 30,610 32,022 33,322 29,310 Reserve for sales allowances (2) 59,150 173,120 177,526 54,744 $ 108,057 $ 204,979 $ 227,511 $ 85,525 Year ended January 31, 2023 Deducted from asset accounts Allowance for doubtful accounts $ 17,391 $ 978 $ 72 $ 18,297 Reserve for returns 30,821 31,944 32,155 30,610 Reserve for sales allowances (2) 55,967 155,388 152,205 59,150 $ 104,179 $ 188,310 $ 184,432 $ 108,057 Year ended January 31, 2022 Allowance for doubtful accounts $ 17,459 $ 157 $ 225 $ 17,391 Reserve for returns 40,704 19,475 29,358 30,821 Reserve for sales allowances (2) 58,651 117,605 120,289 55,967 $ 116,814 $ 137,237 $ 149,872 $ 104,179 (1) Accounts written off as uncollectible, net of recoveries. (2) See Note 1 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, 2024 | |
SIGNIFICANT 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 its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that is 75% owned by the Company and is treated as a consolidated majority-owned subsidiary. In October 2021, the Company purchased Sonia Rykiel, a wholly-owned operating subsidiary. The results of Sonia Rykiel are included in our consolidated financial statements beginning in the fourth quarter of fiscal 2022. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that was 19% owned by the Company through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that was 49% owned by the Company and 51% indirectly owned by KLH through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. All material intercompany balances and transactions have been eliminated. The results of KLH are included in the Company’s consolidated financial statements beginning May 31, 2022. KLH, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Fabco and Sonia Rykiel report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. Accordingly, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included in the financial statements for the year ended or ending closest to the Company’s fiscal year end. For example, with respect to the Company’s results for the year ended January 31, 2024, the results of Vilebrequin, Fabco and Sonia Rykiel are included for the year ended December 31, 2023. For the year ended January 31, 2023, the results of KLH, which includes KLNA, are included for the period from May 31, 2022 through December 31, 2022. The results of the Company’s previous 49% ownership interest in KLNA and 19% ownership interest in KLH are included for the period from January 1, 2022 through May 30, 2022. The Company’s retail operations segment reports on a 52/53-week fiscal year. The Company’s year ended January 31, 2024 was a 53-week fiscal year for the retail operations segment. The Company’s year ended January 31, 2023 was a 52-week fiscal year for the retail operations segment. |
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 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. 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 3 – Allowance for Doubtful Accounts. |
Inventories | 5. Inventories Wholesale inventories, which comprises a significant portion of the Company’s inventory, and KLH’s inventories are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Substantially all of the Company’s inventories consist of finished goods. Effective February 1, 2021, the Company elected to change its method of accounting for retail inventories from the lower of cost or market as determined by the retail inventory method to the lower of cost or net realizable value using the weighted average cost method. The Company believes the new method is preferable as it provides better matching of cost of goods sold with revenue, improves the precision of inventory valuation at the balance sheet dates, and more closely aligns with the valuation methods used throughout the rest of the Company. In addition, the change in inventory valuation better aligns with the way the Company manages its business with a focus on the actual margin realized. The Company applied the change prospectively as of February 1, 2021. The cumulative adjustment as of February 1, 2021 was a decrease of $0.3 million in both inventories 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 The Company accounts for its leases in accordance with 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. |
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 2024, the Company recorded a $1.3 million impairment charge related to leasehold improvements, furniture and fixtures, computer hardware and operating lease assets at certain DKNY, Karl Lagerfeld and Vilebrequin stores as a result of the performance at these stores. In fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. In fiscal 2022, the Company recorded a $1.5 million impairment charge related to the leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin 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. |
Net Income (Loss) Per Common Share | 11. Net Income (Loss) Per Common Share Basic net income (loss) per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards and stock options outstanding during the period. Approximately 102,000 and 11,000 shares of common stock have been excluded from the diluted net income per share calculation for the years ended January 31, 2024 and 2022, respectively. All share-based payments outstanding that vest based on the achievement of performance conditions, and for which the respective performance conditions have not been achieved, have been excluded from the diluted per share calculation. The Company issued no shares of common stock in connection with the exercise or vesting of equity awards during the years ended January 31, 2024, 2023 and 2022, respectively. Instead, the Company re-issued 610,631, 387,792 and 194,965 treasury shares in connection with the vesting of equity awards in fiscal 2024, 2023 and 2022, respectively. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income (loss) per share: Year Ended January 31, 2024 2023 2022 (In thousands, except share and per share amounts) Net income (loss) attributable to G-III Apparel Group, Ltd. $ 176,168 $ (133,061) $ 200,593 Basic net income (loss) per share: Basic common shares 45,859 47,653 48,426 Basic net income (loss) per share $ 3.84 $ (2.79) $ 4.14 Diluted net income (loss) per share: Basic common shares 45,859 47,653 48,426 Dilutive restricted stock unit awards and stock options 1,141 — 1,090 Diluted common shares 47,000 47,653 49,516 Diluted net income (loss) per share $ 3.75 $ (2.79) $ 4.05 |
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 two Excess tax benefits arising from the lapse or exercise of an equity award are recognized in income tax expense. The assumed proceeds from applying the treasury stock method when computing net income (loss) 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 $175.6 million, $187.6 million and $130.2 million for the years ended January 31, 2024, 2023 and 2022, 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 $121.7 million, $131.6 million and $93.1 million for the years ended January 31, 2024, 2023 and 2022, respectively. Prepaid advertising, which represents advance payments to licensors for minimum guaranteed payments for advertising under the Company’s licensing agreements, was $7.3 million and $8.3 million at January 31, 2024 and 2023, 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 2024 2023 2024 2023 (In thousands) Secured Notes 1 $ 400,000 $ 400,000 $ 401,080 $ 380,000 Revolving credit facility 2 — 80,087 — 80,087 Note issued to LVMH 3 — 121,202 — 119,426 Unsecured loans 2 8,791 10,866 8,791 10,866 Overdraft facilities 2 2,651 3,657 2,651 3,657 Foreign credit facility 2 8,939 7,792 8,939 7,792 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 fair value of the Company’s secured notes is based on their current market price as of January 31, 2024. The carrying amount of the Company’s variable rate debt approximates the fair value, as interest rates change with the market rates. Furthermore, the carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash, accounts receivable and accounts payable) also approximates fair value due to the short-term nature of these accounts. The 2% note in the original principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKNY and Donna Karan was recorded on the balance sheet 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 fully recoverable. For assets that are not recoverable, 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 2024, the Company recorded a $1.3 million impairment charge primarily During fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. During fiscal 2022, the Company recorded a $1.5 million impairment charge primarily related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance at these stores. |
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. |
Effects of Recently Adopted and Issued Accounting Pronouncements | 19. Effects of Recently Adopted and Issued Accounting Pronouncements Recently Adopted Accounting Guidance There was no new accounting guidance adopted during the year ended January 31, 2024. Accounting Guidance Issued Being Evaluated for Adoption In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The ASU expands the scope and frequency of segment disclosures and introduces the concept of a “significant expense principle,” which requires entities to disclose significant expense categories and amounts that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of a segment’s profit or loss. The ASU also changes current disclosure requirements by allowing entities to report multiple measures of a segment’s profit or loss, provided the reported measures are used by the CODM to assess performance and allocate resources and that the measure closest to GAAP is also provided. Finally, the ASU requires all segment profit or loss and assets disclosures to be provided on both an annual and interim basis and requires entities to disclose the title and position of the individual identified as the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and shall be applied retrospectively to all periods presented in the financial statements. The Company is currently evaluating the standard and determining the extent of additional interim and annual segment disclosures that may be required. In December 2023, the FASB issued , “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. This new guidance is designed to enhance the transparency and decision usefulness of income tax disclosures. The amendments of this update are related to the rate reconciliation and income taxes paid, requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) income taxes paid disaggregated by jurisdiction. is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the standard and determining the extent of additional disclosures that may be required. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
SIGNIFICANT 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 (loss) per share: Year Ended January 31, 2024 2023 2022 (In thousands, except share and per share amounts) Net income (loss) attributable to G-III Apparel Group, Ltd. $ 176,168 $ (133,061) $ 200,593 Basic net income (loss) per share: Basic common shares 45,859 47,653 48,426 Basic net income (loss) per share $ 3.84 $ (2.79) $ 4.14 Diluted net income (loss) per share: Basic common shares 45,859 47,653 48,426 Dilutive restricted stock unit awards and stock options 1,141 — 1,090 Diluted common shares 47,000 47,653 49,516 Diluted net income (loss) per share $ 3.75 $ (2.79) $ 4.05 |
Schedule of carrying values and estimated fair values of debt instruments | 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 2024 2023 2024 2023 (In thousands) Secured Notes 1 $ 400,000 $ 400,000 $ 401,080 $ 380,000 Revolving credit facility 2 — 80,087 — 80,087 Note issued to LVMH 3 — 121,202 — 119,426 Unsecured loans 2 8,791 10,866 8,791 10,866 Overdraft facilities 2 2,651 3,657 2,651 3,657 Foreign credit facility 2 8,939 7,792 8,939 7,792 |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Accounts Receivable and Allowance for Doubtful Accounts | The Company’s accounts receivable and allowance for doubtful accounts as of January 31, 2024 and 2023 were: January 31, 2024 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 563,130 $ 704 $ 563,834 Allowance for doubtful accounts (1,408) (63) (1,471) Accounts receivable, net $ 561,722 $ 641 $ 562,363 January 31, 2023 Wholesale Retail Total (In thousands) Accounts receivable, gross $ 692,033 $ 1,227 $ 693,260 Allowance for doubtful accounts (18,237) (60) (18,297) Accounts receivable, net $ 673,796 $ 1,167 $ 674,963 |
Activity in Allowance for Credit Losses | During the year ended January 31, 2024, accounts receivable balances of $16.7 million were deemed uncollectable and written off against the allowance primarily due to the bankruptcy of certain department store customers. The Company had the following activity in its allowance for credit losses: January 31, 2024 Wholesale Retail Total (In thousands) Balance as of January 31, 2023 $ (18,237) $ (60) $ (18,297) Provision for credit losses 166 (3) 163 Accounts written off as uncollectible 16,663 — 16,663 Balance as of January 31, 2024 $ (1,408) $ (63) $ (1,471) January 31, 2023 Wholesale Retail Total (In thousands) Balance as of January 31, 2022 $ (17,307) $ (84) $ (17,391) Provision for credit losses (1,002) 24 (978) Accounts written off as uncollectible 72 — 72 Balance as of January 31, 2023 $ (18,237) $ (60) $ (18,297) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
PROPERTY AND EQUIPMENT [Abstract] | |
Schedule of property and equipment | January 31, Estimated life 2024 2023 (In thousands) Machinery and equipment 5 years $ 2,586 $ 2,437 Leasehold improvements 3-13 years 91,329 83,768 Furniture and fixtures 3-5 years 134,540 130,340 Computer equipment and software 2-5 years 59,957 52,293 288,412 268,838 Less: accumulated depreciation (233,328) (215,096) $ 55,084 $ 53,742 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
LEASES [Abstract] | |
Schedule of lease assets and liabilities | Leases Classification January 31, 2024 January 31, 2023 (In thousands) Assets Operating Operating lease assets $ 216,886 $ 239,665 Total lease assets $ 216,886 $ 239,665 Liabilities Current operating Current operating lease liabilities $ 56,587 $ 52,917 Noncurrent operating Noncurrent operating lease liabilities 178,247 204,974 Total lease liabilities $ 234,834 $ 257,891 |
Schedule of maturity of operating lease liabilities | Year Ending January 31, Amount (In thousands) 2025 $ 73,297 2026 61,150 2027 48,552 2028 39,004 2029 26,150 After 2029 40,171 Total lease payments $ 288,324 Less: Interest 53,490 Present value of lease liabilities $ 234,834 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
INTANGIBLE ASSETS [Abstract] | |
Schedule of intangible assets | Intangible assets consist of: January 31, 2024 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 19,152 $ (17,930) $ 1,222 Customer relationships 15-17 years 52,592 (25,903) 26,689 Other 5-10 years 9,496 (5,731) 3,765 Total finite-lived intangible assets $ 81,240 $ (49,564) $ 31,676 Indefinite-lived intangible assets Trademarks 630,333 Total indefinite-lived intangible assets 630,333 Total intangible assets, net $ 662,009 January 31, 2023 Estimated Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount (In thousands) Finite-lived intangible assets Licenses 14 years $ 18,955 $ (17,314) $ 1,641 Customer relationships 15-17 years 52,392 (22,931) 29,461 Other 5-10 years 8,583 (4,843) 3,740 Total finite-lived intangible assets $ 79,930 $ (45,088) $ 34,842 Indefinite-lived intangible assets Trademarks 628,156 Total indefinite-lived intangible assets 628,156 Total intangible assets, net $ 662,998 |
Schedule of estimated intangible amortization expense | The estimated amortization expense with respect to intangibles for the next five years is as follows: Year Ending January 31, Amortization Expense (In thousands) 2025 $ 5,106 2026 3,984 2027 3,578 2028 3,264 2029 3,274 |
Schedule of changes in amounts of goodwill | There was no goodwill recognized during the year ended January 31, 2024. Changes in the amounts of goodwill for the year ended January 31, 2023 is summarized by reportable segment as follows (in thousands): Wholesale Retail Total January 31, 2022 $ 262,527 $ — $ 262,527 Acquisition of Karl Lagerfeld 84,336 — 84,336 Acquisition of other foreign business 3,523 — 3,523 Impairment (347,172) — (347,172) Currency translation (3,214) — (3,214) January 31, 2023 $ — $ — $ — |
NOTES PAYABLE AND OTHER LIABI_2
NOTES PAYABLE AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
NOTES PAYABLE AND OTHER LIABILITIES [Abstract] | |
Schedule of long-term debt | January 31, 2024 January 31, 2023 (in thousands) Secured Notes $ 400,000 $ 400,000 Revolving credit facility — 80,087 Note issued to LVMH — 125,000 Unsecured loans 8,791 10,866 Overdraft facilities 2,651 3,657 Foreign credit facility 8,939 7,792 Subtotal 420,381 627,402 Less: Net debt issuance costs (1) (2,548) (4,246) Debt discount — (3,798) Current portion of long-term debt (15,026) (135,518) Total $ 402,807 $ 483,840 (1) Does not include the debt issuance costs, net of amortization, totaling $2.4 million and $4.0 million as of January 31, 2024 and 2023, 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) 2025 $ 15,026 2026 402,385 2027 1,535 2028 730 2029 and thereafter 705 |
Schedule of accrued expenses | January 31, 2024 January 31, 2023 (in thousands) Accrued bonuses $ 38,298 $ 16,831 Other accrued expenses 102,237 98,755 Total $ 140,535 $ 115,586 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
INCOME TAXES [Abstract] | |
Schedule of components of income tax provision | Year Ended January 31, 2024 2023 2022 (In thousands) Current Federal $ 42,376 $ 27,982 $ 39,283 State and city 9,768 8,278 4,484 Foreign 9,971 14,647 5,991 62,115 50,907 49,758 Deferred Federal 6,469 (50,764) 17,090 State and city 878 (4,457) 2,116 Foreign (3,603) 526 1,911 3,744 (54,695) 21,117 Income tax expense (benefit) $ 65,859 $ (3,788) $ 70,875 Income (loss) before income taxes United States $ 218,528 $ (106,086) $ 234,034 Non-United States 22,071 (32,084) 36,942 $ 240,599 $ (138,170) $ 270,976 |
Schedule of significant components of net deferred tax assets | 2024 2023 (In thousands) Deferred income tax assets: Compensation $ 3,444 $ 879 Inventory 13,756 12,197 Provision for bad debts and sales allowances 11,918 15,237 Supplemental employee retirement plan 792 688 Net operating loss 40,183 33,749 Operating lease liability 52,341 56,519 Foreign tax credit carryforward 5,594 3,865 Section 174 R&D amortization 1,016 478 Other 4,919 — Gross deferred income tax assets 133,963 123,612 Less: valuation allowance (39,140) (33,087) Net deferred income tax assets 94,823 90,525 Deferred income tax liabilities: Depreciation and amortization (15,821) (6,268) Intangibles (51,071) (48,760) Operating lease asset (46,546) (50,995) Accrued expenses — (57) Prepaid expenses and other (2,149) (2,279) Other (2,724) (560) Total deferred income tax liabilities (118,311) (108,919) Net deferred income tax liabilities $ (23,488) $ (18,394) |
Schedule of reconciliation of statutory federal income tax rate to effective rate reported in financial statements | 2024 2023 2022 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 3.7 (2.1) 2.0 Permanent differences 2.8 (2.1) 2.8 U.S. tax on foreign earnings 1.8 (6.0) 1.5 Foreign tax rate differential 1.0 1.2 — Foreign tax credit (2.9) 7.9 (3.4) Valuation allowance 0.4 (3.1) 0.8 Goodwill impairment — (17.3) — Non-taxable capital gain — 5.1 — Other, net (1) (0.4) (1.9) 1.5 Actual provision for income taxes 27.4 % 2.7 % 26.2 % |
Schedule of reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) | 2024 2023 2022 (In thousands) Balance at February 1, $ 3,582 $ 2,442 $ 2,293 Additions based on tax positions related to the current year 57 245 — Additions for tax positions of prior years 1,015 895 595 Reductions for tax positions of prior years (413) — — Lapses of statutes of limitations — — (446) Balance at January 31, $ 4,241 $ 3,582 $ 2,442 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Schedule of future minimum royalty and advertising payments required under these agreements | Year Ending January 31, Amount (In thousands) 2025 108,615 2026 91,259 2027 58,111 2028 36,779 2029 11,254 Thereafter 2,308 $ 308,326 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
STOCKHOLDERS' EQUITY, [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, 2021 1,393,268 $ 12.47 466,830 $ 34.17 Granted 326,791 $ 31.52 176,212 $ 31.43 Vested (201,260) $ 20.43 (125,934) $ 30.23 Cancelled (2,650) $ 33.46 — $ — Unvested as of January 31, 2022 1,516,149 $ 15.48 517,108 $ 34.20 Granted 1,076,509 $ 26.88 308,317 $ 31.42 Vested (656,814) $ 29.11 (78,998) $ 35.77 Cancelled (17,599) $ 31.21 (261,898) $ 35.60 Unvested as of January 31, 2023 1,918,245 $ 17.07 484,529 $ 31.41 Granted 572,147 $ 16.47 1,030,381 $ 21.15 Vested (1,153,872) $ 10.61 — $ — Cancelled (43,445) $ 23.39 — $ — Unvested as of January 31, 2024 1,293,075 $ 22.35 1,514,910 $ 24.44 |
Schedule of information regarding stock options | Stock Options 2024 2023 2022 Weighted Weighted Weighted Average Average Average Shares Exercise Shares Exercise Shares Exercise Stock options outstanding at beginning of year — $ — 10,000 $ 18.11 18,245 $ 23.63 Exercised — $ — — $ — — $ — Granted — $ — — $ — — $ — Cancelled or forfeited — $ — (10,000) $ 18.11 (8,245) $ 30.32 Stock options outstanding at end of year — $ — — $ — 10,000 $ 18.11 Exercisable — $ — — $ — 10,000 $ 18.11 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
SEGMENTS [Abstract] | |
Schedule of information regarding reportable segments | The following segment information, in thousands, is presented for the fiscal years ended: January 31, 2024 Wholesale Retail Elimination (1) Total Net sales $ 3,009,614 $ 148,428 $ (59,800) $ 3,098,242 Cost of goods sold 1,839,183 77,012 (59,800) 1,856,395 Gross profit 1,170,431 71,416 — 1,241,847 Selling, general and administrative expenses 826,921 97,302 — 924,223 Depreciation and amortization 22,505 5,018 — 27,523 Asset impairments 7,140 (382) — 6,758 Operating profit (loss) $ 313,865 $ (30,522) $ — $ 283,343 January 31, 2023 Wholesale Retail Elimination (1) Total Net sales $ 3,160,025 $ 137,231 $ (70,528) $ 3,226,728 Cost of goods sold 2,127,318 68,801 (70,528) 2,125,591 Gross profit 1,032,707 68,430 — 1,101,137 Selling, general and administrative expenses 736,820 96,331 — 833,151 Depreciation and amortization 23,980 3,782 — 27,762 Asset impairments 347,722 1,964 — 349,686 Operating profit (loss) $ (75,815) $ (33,647) $ — $ (109,462) January 31, 2022 Wholesale Retail Elimination (1) Total Net sales $ 2,710,787 $ 117,656 $ (61,905) $ 2,766,538 Cost of goods sold 1,782,533 57,721 (61,905) 1,778,349 Gross profit 928,254 59,935 — 988,189 Selling, general and administrative expenses 567,949 80,066 — 648,015 Depreciation and amortization 24,023 3,603 — 27,626 Asset impairments 368 1,087 — 1,455 Operating profit (loss) $ 335,914 $ (24,821) $ — $ 311,093 (1) Represents intersegment sales to the Company’s retail operations segment . |
Schedule of total net sales by licensed and proprietary product sales | The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows: January 31, 2024 2023 2022 (In thousands) Licensed brands $ 1,653,259 $ 1,891,522 $ 1,820,491 Proprietary brands 1,356,355 1,268,503 890,296 Wholesale net sales (1) $ 3,009,614 $ 3,160,025 $ 2,710,787 Licensed brands $ — $ — $ 39,604 Proprietary brands 148,428 137,231 78,052 Retail net sales $ 148,428 $ 137,231 $ 117,656 (1) As of May 31, 2022, the Company acquired the remaining interests in KLH (Karl Lagerfeld branded product) that it did not already own. Net sales of Karl Lagerfeld product were included in licensed brands net sales of the wholesale operations segment through May 31, 2022. Subsequent to May 31, 2022, net sales of Karl Lagerfeld product are included in proprietary brands net sales of the wholesale operations segment. |
Schedule of total net sales for each reportable segments | The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: January 31, January 31, 2024 2023 (In thousands) Wholesale $ 1,562,203 $ 1,746,314 Retail 104,272 127,047 Corporate 1,014,689 839,044 Total Assets $ 2,681,164 $ 2,712,405 |
Schedule of total net sales and long-lived assets by geographic region | The total net sales and long-lived assets by geographic region are as follows: 2024 2023 2022 Long-Lived Long-Lived Long-Lived Geographic Region Net Sales Assets Net Sales Assets Net Sales Assets United States $ 2,400,191 $ 605,548 $ 2,609,710 $ 633,799 $ 2,365,919 $ 938,947 Non-United States 698,051 415,298 617,018 426,106 400,619 150,724 $ 3,098,242 $ 1,020,846 $ 3,226,728 $ 1,059,905 $ 2,766,538 $ 1,089,671 |
KARL LAGERFELD ACQUISITION (Tab
KARL LAGERFELD ACQUISITION (Tables) | 12 Months Ended |
Jan. 31, 2024 | |
KARL LAGERFELD ACQUISITION [Abstract] | |
Schedule of total consideration paid for acquisition | The initial purchase price and the valuation of the prior minority ownership for the acquisition of KLH is as follows (in thousands): Cash disbursed for the acquisition of KLH $ 168,592 Plus: cash acquired 38,499 Plus: aggregate adjustments to purchase price 516 Initial purchase price 207,607 Plus: fair value of prior minority ownership 102,858 Total consideration $ 310,465 |
Schedule of fair values of assets acquired and liabilities | The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: (In thousands) Cash and cash equivalents $ 38,499 Accounts receivable, net 28,449 Inventories 33,489 Prepaid income taxes 1,100 Prepaid expenses and other current assets 3,347 Property, plant and equipment, net 11,545 Operating lease assets 55,753 Goodwill 84,336 Trademarks 178,823 Customer relationships 4,294 Deferred income taxes 5,131 Other long-term assets 2,237 Total assets acquired $ 447,003 Notes payable 3,606 Accounts payable 9,175 Accrued expenses 15,261 Operating lease liabilities 58,942 Income taxes payable 2,099 Deferred income taxes 42,222 Other long-term liabilities 5,233 Total liabilities assumed $ 136,538 Total fair value of acquisition consideration $ 310,465 |
Schedule of identifiable intangible assets | Weighted Average Fair Value Amortization Period Trademarks $ 178,823 — Customer relationships 4,294 8 $ 183,117 — |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 01, 2023 | Jun. 01, 2023 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | May 31, 2022 | May 30, 2022 | Feb. 01, 2021 | Jan. 31, 2021 | Feb. 29, 2016 | Jun. 30, 2015 | |
Accounting Policies [Line Items] | ||||||||||||
Cumulative effect of adoption of ASC | $ 1,385,448 | $ 1,550,260 | $ 1,385,448 | $ 1,519,912 | $ 1,336,241 | |||||||
Inventories | 709,345 | 520,426 | 709,345 | |||||||||
Goodwill impairment | 347,200 | $ 5,900 | $ 347,172 | |||||||||
Anti-dilutive shares excluded from diluted net income per share calculation | 102,000 | 11,000 | ||||||||||
Common stock issued in connection with exercise or vesting of equity awards | 0 | 0 | 0 | |||||||||
Treasury shares re-issued in connection with the exercise or vesting of equity awards | 610,631 | 387,792 | 194,965 | |||||||||
Selling, general and administrative expenses | $ 924,223 | $ 833,151 | $ 648,015 | |||||||||
Advertising expense | 121,700 | 131,600 | 93,100 | |||||||||
Prepaid advertising | $ 8,300 | 7,300 | 8,300 | |||||||||
Repayment of principle amount | $ 50,000 | $ 75,000 | $ 125,000 | |||||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Cumulative effect of adoption of ASC | $ (300) | |||||||||||
Inventories | $ (300) | |||||||||||
Karl Lagerfeld Holding B.V. | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Percentage acquired | 81% | |||||||||||
Intangible assets, estimated useful lives | 15 years | |||||||||||
Karl Lagerfeld Holding B.V. | Karl Lagerfeld Holding B.V. ("KLH") | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Percentage acquired | 81% | |||||||||||
Karl Lagerfeld Holding B.V. ("KLH") | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percent | 19% | 19% | ||||||||||
Goodwill impairment | 84,300 | |||||||||||
Karl Lagerfeld Holding B.V. ("KLH") | Karl Lagerfeld Holding B.V. ("KLH") | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percent | 51% | |||||||||||
Karl Lagerfeld Holding B.V. ("KLH") | Karl Lagerfeld Holding B.V. | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percent | 19% | |||||||||||
KL North America B.V. | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percent | 49% | 49% | ||||||||||
Fabco Holding B.V. | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Ownership percent | 75% | |||||||||||
Wholesale shipping and handling costs | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Selling, general and administrative expenses | $ 175,600 | 187,600 | 130,200 | |||||||||
Restricted Stock Units | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Vesting and exercise period of awards | 3 years | |||||||||||
Performance Shares | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Vesting and exercise period of awards | 3 years | |||||||||||
Lock up period after vesting | 2 years | |||||||||||
Minimum | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Intangible assets, estimated useful lives | 5 years | |||||||||||
Minimum | Performance Shares | ||||||||||||
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 | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Vesting and exercise period of awards | 5 years | |||||||||||
Wholesale operations | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Goodwill impairment | 347,172 | |||||||||||
Retail | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Goodwill impairment | ||||||||||||
DKNY, Karl Lagerfeld Paris and Vilebrequin stores | Furniture and fixtures | ||||||||||||
Accounting Policies [Line Items] | ||||||||||||
Impairment charge on leasehold improvements | $ 1,300 | $ 2,700 | $ 1,500 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Reconciliation between Basic and Diluted Net Income (loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
Net income (loss) attributable to G-III Apparel Group, Ltd. | $ 176,168 | $ (133,061) | $ 200,593 |
Basic net income (loss) per share: | |||
Basic common shares | 45,859 | 47,653 | 48,426 |
Basic net income (loss) per share (in dollars per share) | $ 3.84 | $ (2.79) | $ 4.14 |
Diluted net income (loss) per share: | |||
Basic common shares | 45,859 | 47,653 | 48,426 |
Dilutive restricted stock unit awards and stock options | 1,141 | 1,090 | |
Diluted common shares | 47,000 | 47,653 | 49,516 |
Diluted net income (loss) per share (in dollars per share) | $ 3.75 | $ (2.79) | $ 4.05 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Carrying Values and the Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Aug. 07, 2020 |
Secured notes | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 7.875% | ||
Principal amount of debt | $ 400,000 | ||
Note issued to LVMH | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 2% | ||
Principal amount of debt | $ 125,000 | ||
Debt discount | 40,000 | ||
Level 1 | Secured notes | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 400,000 | $ 400,000 | |
Debt instruments, fair value | 401,080 | 380,000 | |
Level 2 | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 80,087 | ||
Debt instruments, fair value | 80,087 | ||
Level 2 | Unsecured Loan | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 8,791 | 10,866 | |
Debt instruments, fair value | 8,791 | 10,866 | |
Level 2 | Overdraft facilities | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 2,651 | 3,657 | |
Debt instruments, fair value | 2,651 | 3,657 | |
Level 2 | Foreign credit facility | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 8,939 | 7,792 | |
Debt instruments, fair value | $ 8,939 | 7,792 | |
Level 3 | Note issued to LVMH | |||
Debt Instrument [Line Items] | |||
Debt instruments, carrying value | 121,202 | ||
Debt instruments, fair value | $ 119,426 |
REVENUE RECOGNITION - Textuals
REVENUE RECOGNITION - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
REVENUE RECOGNITION [Abstract] | ||
Customer refund liabilities | $ 84,054 | $ 89,760 |
Contract liabilities | 5,200 | 5,100 |
Revenue recognized related to contract liabilities | 4,700 | |
Contract assets | $ 0 | $ 0 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Narrative) (Details) | 12 Months Ended |
Jan. 31, 2024 segment | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Number of reportable segments | 2 |
ALLOWANCE FOR DOUBTFUL ACCOUN_4
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Accounts Receivable and Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 |
Segment Reporting Information [Line Items] | |||
Accounts receivable, gross | $ 563,834 | $ 693,260 | |
Allowance for doubtful accounts | (1,471) | (18,297) | $ (17,391) |
Accounts receivable, net | 562,363 | 674,963 | |
Wholesale | |||
Segment Reporting Information [Line Items] | |||
Accounts receivable, gross | 563,130 | 692,033 | |
Allowance for doubtful accounts | (1,408) | (18,237) | (17,307) |
Accounts receivable, net | 561,722 | 673,796 | |
Retail | |||
Segment Reporting Information [Line Items] | |||
Accounts receivable, gross | 704 | 1,227 | |
Allowance for doubtful accounts | (63) | (60) | $ (84) |
Accounts receivable, net | $ 641 | $ 1,167 |
ALLOWANCE FOR DOUBTFUL ACCOUN_5
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Beginning balance | $ (18,297) | $ (17,391) |
Provision for credit losses | 163 | (978) |
Accounts written off as uncollectible | 16,663 | 72 |
Ending balance | (1,471) | (18,297) |
Wholesale | ||
Segment Reporting Information [Line Items] | ||
Beginning balance | (18,237) | (17,307) |
Provision for credit losses | 166 | (1,002) |
Accounts written off as uncollectible | 16,663 | 72 |
Ending balance | (1,408) | (18,237) |
Retail | ||
Segment Reporting Information [Line Items] | ||
Beginning balance | (60) | (84) |
Provision for credit losses | (3) | 24 |
Ending balance | $ (63) | $ (60) |
INVENTORIES - Textuals (Details
INVENTORIES - Textuals (Details) - USD ($) $ in Millions | Jan. 31, 2024 | Jan. 31, 2023 |
Inventory [Line Items] | ||
Inventory held on consignment | $ 6.6 | $ 6.6 |
Prepaid Expenses and Other Current Assets | ||
Inventory [Line Items] | ||
Inventory return asset | $ 16.5 | $ 19.2 |
PROPERTY AND EQUIPMENT - Proper
PROPERTY AND EQUIPMENT - Property and Equipment at Cost (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 288,412 | $ 268,838 |
Less: accumulated depreciation | (233,328) | (215,096) |
Property and equipment, net | $ 55,084 | $ 53,742 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 5 years | 5 years |
Property and equipment, gross | $ 2,586 | $ 2,437 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 91,329 | $ 83,768 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 3 years | 3 years |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 13 years | 13 years |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 134,540 | $ 130,340 |
Furniture and fixtures | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 3 years | 3 years |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 5 years | 5 years |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 59,957 | $ 52,293 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 2 years | 2 years |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives of fixed assets | 5 years | 5 years |
PROPERTY AND EQUIPMENT - Textua
PROPERTY AND EQUIPMENT - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Property Plant And Equipment [Line Items] | |||
Depreciation expense | $ 22,000 | $ 23,500 | $ 23,600 |
Leasehold improvements and furniture and fixtures | Vilebrequin and Karl Lagerfeld stores | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | $ 800 | ||
Leasehold improvements and furniture and fixtures | DKNY and Karl Lagerfeld Paris stores | |||
Property Plant And Equipment [Line Items] | |||
Impairment charge on leasehold improvements | $ 1,800 | $ 1,300 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Lessee, Operating Lease, Description [Abstract] | |||
Option to extend | true | ||
Lessee, operating lease, option to terminate | The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor. | ||
Variable lease costs and short-term lease costs including rent forgiveness | $ 24,100 | $ 17,100 | $ 10,500 |
Impairment charge related to the operating lease assets | $ 300 | $ 700 | $ 200 |
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, 2024 | Jan. 31, 2023 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease assets | $ 216,886 | $ 239,665 |
Classification of operating lease assets | Operating lease assets | Operating lease assets |
Total lease assets | $ 216,886 | $ 239,665 |
Current operating lease liabilities | $ 56,587 | $ 52,917 |
Classification current operating lease liabilities | Current operating lease liabilities | Current operating lease liabilities |
Noncurrent operating lease liabilities | $ 178,247 | $ 204,974 |
Classification of noncurrent operating liabilities | Noncurrent operating lease liabilities | Noncurrent operating lease liabilities |
Total lease liabilities | $ 234,834 | $ 257,891 |
LEASES - Lease cost (Details)
LEASES - Lease cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Selling, general and administrative expenses | |||
Lease, Cost [Abstract] | |||
Lease costs | $ 73.5 | $ 64.9 | $ 55.7 |
LEASES - Future minimum payment
LEASES - Future minimum payments under our operating lease (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2025 | $ 73,297 | |
2026 | 61,150 | |
2027 | 48,552 | |
2028 | 39,004 | |
2029 | 26,150 | |
After 2029 | 40,171 | |
Total lease payments | 288,324 | |
Less: Interest | 53,490 | |
Present value of lease liabilities | $ 234,834 | $ 257,891 |
LEASES - Other information (Det
LEASES - Other information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 31, 2024 | Jan. 31, 2023 | |
LEASES [Abstract] | ||
Operating lease, lease not yet commenced, description | As of January 31, 2024, there are no material leases that are legally binding but have not yet commenced | |
Weighted average remaining lease term | 5 years | |
Weighted average discount rate | 6.80% | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 76.7 | $ 69.8 |
Right-of-use assets obtained in exchange for lease obligations | $ 35 | $ 126.8 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 |
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 81,240 | $ 79,930 | |
Accumulated amortization | (49,564) | (45,088) | |
Total finite-lived intangible assets | 31,676 | 34,842 | |
Indefinite-lived intangible assets | |||
Goodwill | 0 | 0 | $ 262,527 |
Trademarks | 630,333 | 628,156 | |
Total indefinite-lived intangible assets | 630,333 | 628,156 | |
Total intangible assets, net | 662,009 | 662,998 | |
Trademarks | |||
Indefinite-lived intangible assets | |||
Trademarks | $ 630,333 | 628,156 | |
Minimum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 5 years | ||
Maximum | |||
Indefinite-lived intangible assets | |||
Estimated Life | 17 years | ||
License Agreements | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 19,152 | 18,955 | |
Accumulated amortization | (17,930) | (17,314) | |
Total finite-lived intangible assets | $ 1,222 | $ 1,641 | |
Indefinite-lived intangible assets | |||
Estimated Life | 14 years | 14 years | |
Customer Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Subtotal | $ 52,592 | $ 52,392 | |
Accumulated amortization | (25,903) | (22,931) | |
Total finite-lived intangible assets | $ 26,689 | $ 29,461 | |
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 | $ 9,496 | $ 8,583 | |
Accumulated amortization | (5,731) | (4,843) | |
Total finite-lived intangible assets | $ 3,765 | $ 3,740 | |
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, 2024 USD ($) |
INTANGIBLE ASSETS [Abstract] | |
2025 | $ 5,106 |
2026 | 3,984 |
2027 | 3,578 |
2028 | 3,264 |
2029 | $ 3,274 |
INTANGIBLE ASSETS - Change in G
INTANGIBLE ASSETS - Change in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | May 31, 2022 | |
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 0 | $ 262,527 | ||
Acquisition | 84,336 | |||
Impairment | $ (347,200) | (5,900) | (347,172) | |
Currency translation | (3,214) | |||
Goodwill, Ending Balance | 0 | 0 | 0 | |
Indefinite-lived intangible assets | ||||
Goodwill | 0 | 0 | 0 | |
Karl Lagerfeld Holding B.V. | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 84,300 | |||
Goodwill, Ending Balance | 84,300 | 84,300 | ||
Indefinite-lived intangible assets | ||||
Goodwill | 84,300 | 84,300 | $ 84,336 | |
Foreign Hospitality Business [Member] | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 3,523 | |||
Wholesale operations | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 0 | 262,527 | ||
Acquisition | 84,336 | |||
Impairment | (347,172) | |||
Currency translation | (3,214) | |||
Goodwill, Ending Balance | 0 | 0 | ||
Indefinite-lived intangible assets | ||||
Goodwill | 0 | 0 | ||
Wholesale operations | Foreign Hospitality Business [Member] | ||||
Goodwill [Roll Forward] | ||||
Acquisition | 3,523 | |||
Retail | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 0 | |||
Acquisition | ||||
Impairment | ||||
Currency translation | ||||
Goodwill, Ending Balance | 0 | 0 | ||
Indefinite-lived intangible assets | ||||
Goodwill | $ 0 | 0 | ||
Retail | Foreign Hospitality Business [Member] | ||||
Goodwill [Roll Forward] | ||||
Acquisition |
INTANGIBLE ASSETS - Textuals (D
INTANGIBLE ASSETS - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Intangible assets amortization expense | $ 5,400 | $ 3,900 | $ 3,700 | ||
Impairment of intangible assets | $ 5,900 | 0 | 0 | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairments, Net Of Loss (Gain) On Lease Terminations | ||||
Goodwill impairment | $ 347,200 | $ 5,900 | 347,172 | ||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 | 262,527 |
Wholesale Reporting Unit | |||||
Business Acquisition [Line Items] | |||||
Goodwill impairment | $ 0 | ||||
Premium risk percentage | 7.50% | ||||
Future operating cash flows discount rate | 17.50% |
NOTES PAYABLE AND OTHER LIABI_3
NOTES PAYABLE AND OTHER LIABILITIES - Long-term debt (Details) $ in Thousands, € in Millions | Jan. 31, 2024 USD ($) | Jan. 31, 2024 EUR (€) | Jan. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |||
Total | $ 402,807 | $ 483,840 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 420,381 | 627,402 | |
Less: Net debt issuance costs | (2,548) | (4,246) | |
Debt discount | (3,798) | ||
Current portion of long-term debt | (15,026) | (135,518) | |
Secured notes | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 8,500 | ||
Secured notes | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 400,000 | 400,000 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | 2,400 | 4,000 | |
Revolving credit facility | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 80,087 | ||
LVMH Note | |||
Debt Instrument [Line Items] | |||
Debt discount | (40,000) | ||
LVMH Note | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 125,000 | ||
Unsecured Loan | |||
Debt Instrument [Line Items] | |||
Total | 8,800 | € 8 | |
Unsecured Loan | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 8,791 | 10,866 | |
Overdraft facilities | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | 2,651 | 3,657 | |
Foreign credit facility | Long-term Debt | |||
Debt Instrument [Line Items] | |||
Subtotal | $ 8,939 | $ 7,792 |
NOTES PAYABLE AND OTHER LIABI_4
NOTES PAYABLE AND OTHER LIABILITIES - Textuals (Details) $ in Thousands, € in Millions, SFr in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | 42 Months Ended | |||||||||
Dec. 01, 2023 USD ($) | Jun. 01, 2023 USD ($) | Aug. 06, 2020 USD ($) | Aug. 31, 2020 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2024 EUR (€) | Jan. 31, 2024 USD ($) | Jan. 31, 2024 EUR (€) | Jan. 31, 2023 USD ($) | Jan. 31, 2023 EUR (€) | Jan. 31, 2023 CHF (SFr) | Aug. 07, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Repayment of principle amount | $ 50,000 | $ 75,000 | $ 125,000 | ||||||||||
Outstanding amount | $ 402,807 | $ 402,807 | $ 402,807 | $ 483,840 | |||||||||
Unamortized debt issuance costs | $ 3,300 | ||||||||||||
Interest expense | $ 400 | ||||||||||||
Secured Overnight Financing Rate SOFR Overnight Index Swap Rate One-Month Interest Period [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 1% | ||||||||||||
Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of principle amount | $ 300,000 | ||||||||||||
Long-term Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt discount | 3,798 | ||||||||||||
Secured notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate | 7.875% | 7.875% | |||||||||||
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. | 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. | |||||||||||
Debt instrument interest rate | 7.875% | ||||||||||||
Frequency of periodic payment | semi-annually | semi-annually | |||||||||||
Principal amount of debt | $ 400,000 | ||||||||||||
Debt issuance costs | $ 8,500 | $ 8,500 | $ 8,500 | ||||||||||
Secured notes | If Company experiences a Change of Control [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Redemption percentage | 101% | ||||||||||||
Revolving credit facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issuance costs | $ 2,400 | $ 2,400 | $ 2,400 | $ 4,000 | |||||||||
LVMH Note | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate | 2% | 2% | 2% | 2% | |||||||||
Principal amount of debt | $ 125,000 | $ 125,000 | $ 125,000 | ||||||||||
Debt discount | 40,000 | $ 40,000 | 40,000 | ||||||||||
LVMH Note | Notes Payable Due On June 1 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of principle amount | $ 75,000 | ||||||||||||
Maturity date | Jun. 01, 2023 | Jun. 01, 2023 | |||||||||||
LVMH Note | Notes Payable due on December 1, 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayment of principle amount | $ 50,000 | ||||||||||||
Maturity date | Dec. 01, 2023 | Dec. 01, 2023 | |||||||||||
Unsecured Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Outstanding amount | 8,800 | $ 8,800 | 8,800 | € 8 | |||||||||
Installment payments | € | € 0.6 | ||||||||||||
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 | 2,700 | 2,700 | 2,700 | 2.4 | |||||||||
Standby Letters of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings outstanding | 2,900 | 2,900 | 2,900 | ||||||||||
Foreign credit facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing amount | € | 15 | ||||||||||||
Borrowings outstanding | 8,900 | $ 8,900 | 8,900 | € 8.1 | |||||||||
Foreign credit facility | Euro Interbank Offered Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 1.70% | 1.70% | |||||||||||
Trade | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings outstanding | $ 4,000 | $ 4,000 | $ 4,000 | ||||||||||
Minimum | Unsecured Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed rate | 0% | 0% | 0% | 0% | |||||||||
Minimum | Overdraft facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable interest rate | 0% | 0% | 0% | ||||||||||
Maximum | Unsecured Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed rate | 5% | 5% | 5% | 5% | |||||||||
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 - Second Amended and Restated ABL Credit Agreement (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Aug. 07, 2020 | Aug. 06, 2020 | Jan. 31, 2024 | Jan. 31, 2024 | Jan. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Outstanding amount | $ 402,807 | $ 402,807 | $ 483,840 | ||
Unamortized debt issuance costs | $ 3,300 | ||||
Interest expense | 400 | ||||
Secured Overnight Financing Rate SOFR Overnight Index Swap Rate One-Month Interest Period [Member] | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1% | ||||
Second amended and restated credit agreement | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 6.62% | 6.62% | |||
Second amended and restated credit agreement | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument commitment fee percentage | 0.50% | ||||
Second amended and restated credit agreement | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument commitment fee percentage | 0.35% | ||||
Second amended and restated credit agreement | Prime rate | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 0.50% | ||||
Second amended and restated credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 0.10% | ||||
Senior secured credit facility | |||||
Debt Instrument [Line Items] | |||||
Debt issuance costs | $ 8,000 | ||||
Senior secured credit facility | LIBOR One-Month Interest Period [Member] | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1% | ||||
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] | |||||
Term of credit agreement | 5 years | ||||
Fixed charge coverage ratio | 1% | 1% | |||
Credit covenant compliance | As of January 31, 2024, the Company was in compliance with these covenants. | ||||
Debt issuance costs | $ 5,100 | ||||
Senior secured credit facility | Second amended and restated credit agreement | LIBOR [Member] | Maximum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 2.25% | ||||
Senior secured credit facility | Second amended and restated credit agreement | LIBOR [Member] | Minimum | |||||
Debt Instrument [Line Items] | |||||
Spread interest rate | 1.75% | ||||
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% | ||||
Term Loan | Senior secured credit facility | |||||
Debt Instrument [Line Items] | |||||
Senior secured credit facility | $ 650,000 | ||||
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, 2024 USD ($) |
NOTES PAYABLE AND OTHER LIABILITIES [Abstract] | |
2025 | $ 15,026 |
2026 | 402,385 |
2027 | 1,535 |
2028 | 730 |
2029 and thereafter | $ 705 |
NOTES PAYABLE AND OTHER LIABI_7
NOTES PAYABLE AND OTHER LIABILITIES- Accrued expenses (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
NOTES PAYABLE AND OTHER LIABILITIES [Abstract] | ||
Accrued bonuses | $ 38,298 | $ 16,831 |
Other accrued expenses | 102,237 | 98,755 |
Total | $ 140,535 | $ 115,586 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Current | |||
Federal | $ 42,376 | $ 27,982 | $ 39,283 |
State and city | 9,768 | 8,278 | 4,484 |
Foreign | 9,971 | 14,647 | 5,991 |
Current Income Tax Expense (Benefit), Total | 62,115 | 50,907 | 49,758 |
Deferred | |||
Federal | 6,469 | (50,764) | 17,090 |
State and city | 878 | (4,457) | 2,116 |
Foreign | (3,603) | 526 | 1,911 |
Deferred Income Tax Expense (Benefit), Total | 3,744 | (54,695) | 21,117 |
Income tax expense (benefit) | 65,859 | (3,788) | 70,875 |
Income (loss) before income taxes | |||
United States | 218,528 | (106,086) | 234,034 |
Non-United States | 22,071 | (32,084) | 36,942 |
Income (loss) before income taxes | $ 240,599 | $ (138,170) | $ 270,976 |
INCOME TAXES - Summary of Signi
INCOME TAXES - Summary of Significant Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Deferred income tax assets: | ||
Compensation | $ 3,444 | $ 879 |
Inventory | 13,756 | 12,197 |
Provision for bad debts and sales allowances | 11,918 | 15,237 |
Supplemental employee retirement plan | 792 | 688 |
Net operating loss | 40,183 | 33,749 |
Operating lease liability | 52,341 | 56,519 |
Foreign tax credit carryforward | 5,594 | 3,865 |
Section 174 R&D amortization | 1,016 | 478 |
Other | 4,919 | |
Gross deferred income tax assets | 133,963 | 123,612 |
Less: valuation allowance | (39,140) | (33,087) |
Net deferred income tax assets | 94,823 | 90,525 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (15,821) | (6,268) |
Intangibles | (51,071) | (48,760) |
Operating lease asset | (46,546) | (50,995) |
Accrued expenses | (57) | |
Prepaid expenses and other | (2,149) | (2,279) |
Other | (2,724) | (560) |
Total deferred income tax liabilities | (118,311) | (108,919) |
Net deferred tax liabilities | $ (23,488) | $ (18,394) |
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, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
INCOME TAXES [Abstract] | |||
Provision for Federal income taxes at the statutory rate | 21% | 21% | 21% |
State and local income taxes, net of Federal tax benefit | 3.70% | (2.10%) | 2% |
Permanent differences | 2.80% | (2.10%) | 2.80% |
U.S. tax on foreign earnings | 1.80% | (6.00%) | 1.50% |
Foreign tax rate differential | 1% | 1.20% | |
Foreign tax credit | (2.90%) | 7.90% | (3.40%) |
Valuation allowance | 0.40% | (3.10%) | 0.80% |
Goodwill Impairment | (17.30%) | ||
Non-taxable capital gain | 5.10% | ||
Other, net | (0.40%) | (1.90%) | 1.50% |
Actual provision for income taxes | 27.40% | 2.70% | 26.20% |
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, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at February 1, | $ 3,582 | $ 2,442 | $ 2,293 |
Additions based on tax positions related to the current year | 57 | 245 | |
Additions for tax positions of prior years | 1,015 | 895 | 595 |
Reductions for tax positions of prior years | (413) | ||
Lapses of statues of limitations | (2,100) | (446) | |
Balance at January 31, | $ 4,241 | $ 3,582 | $ 2,442 |
INCOME TAXES - Textuals (Detail
INCOME TAXES - Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2023 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Income Taxes [Line Items] | ||||
Undistributed earnings of foreign subsidiaries | $ 150,000 | |||
Effective tax rate | 27.40% | 2.70% | 26.20% | |
Percentage change in effective tax rate from prior year | (2.70%) | |||
Goodwill impairment | $ 347,200 | $ 5,900 | $ 347,172 | |
Change in valuation allowance | 6,000 | |||
State net operating loss carryforwards | 3,900 | |||
Net operating loss carryforwards, indefinite | 2,100 | |||
Foreign net operating loss carryforwards | 36,300 | |||
Federal net operating loss carryforwards | 5,600 | |||
Provisional charge related to the repatriation tax | 0 | |||
Increase in the unrecognized tax position reserve | 700 | |||
Unrecognized income tax benefits, lapses of statutes of limitations | 2,100 | $ 446 | ||
Excess Foreign Tax Credits | ||||
Income Taxes [Line Items] | ||||
Change in valuation allowance | 1,700 | |||
Foreign Net Operating Losses | ||||
Income Taxes [Line Items] | ||||
Change in valuation allowance | 6,700 | |||
Foreign Net Operating Losses Expected to be Utilized | ||||
Income Taxes [Line Items] | ||||
Change in valuation allowance | $ 2,400 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Royalty and Advertising Payments (Details) - Royalty and Advertising Payments $ in Thousands | Jan. 31, 2024 USD ($) |
Licenses Agreements [Line Items] | |
2025 | $ 108,615 |
2026 | 91,259 |
2027 | 58,111 |
2028 | 36,779 |
2029 | 11,254 |
Thereafter | 2,308 |
Future minimum royalty and advertising payments, total | $ 308,326 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Textuals (Details) $ in Millions, $ in Millions | 12 Months Ended | 24 Months Ended | ||||
Jan. 31, 2024 USD ($) | Jan. 31, 2024 CAD ($) | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2024 CAD ($) | |
Commitment And Contingencies [Line Items] | ||||||
Advertising expense | $ 121.7 | $ 131.6 | $ 93.1 | |||
Value of bond issued for prepayments of additional duties | $ 4.8 | $ 6.5 | ||||
Amendment in prepayments of additional duties | 6.1 | $ 8.2 | ||||
License Agreements | ||||||
Commitment And Contingencies [Line Items] | ||||||
Royalty expense | 154.2 | 162.9 | 145.1 | |||
Advertising expense | $ 36.7 | $ 45.2 | $ 41.2 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock (Details) - $ / shares | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Restricted Stock Units (RSUs) | |||
Awards Outstanding | |||
Unvested, beginning balance | 1,918,245 | 1,516,149 | 1,393,268 |
Granted | 572,147 | 1,076,509 | 326,791 |
Vested | (1,153,872) | (656,814) | (201,260) |
Cancelled | (43,445) | (17,599) | (2,650) |
Unvested, ending balance | 1,293,075 | 1,918,245 | 1,516,149 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 17.07 | $ 15.48 | $ 12.47 |
Granted | 16.47 | 26.88 | 31.52 |
Vested | 10.61 | 29.11 | 20.43 |
Canceled | 23.39 | 31.21 | 33.46 |
Unvested, ending balance | $ 22.35 | $ 17.07 | $ 15.48 |
Performance Shares | |||
Awards Outstanding | |||
Unvested, beginning balance | 484,529 | 517,108 | 466,830 |
Granted | 1,030,381 | 308,317 | 176,212 |
Vested | (78,998) | (125,934) | |
Cancelled | (261,898) | ||
Unvested, ending balance | 1,514,910 | 484,529 | 517,108 |
Weighted Average Grant Date Fair Value | |||
Unvested, beginning balance | $ 31.41 | $ 34.20 | $ 34.17 |
Granted | 21.15 | 31.42 | 31.43 |
Vested | 35.77 | 30.23 | |
Canceled | 35.60 | ||
Unvested, ending balance | $ 24.44 | $ 31.41 | $ 34.20 |
STOCKHOLDERS' EQUITY - Informat
STOCKHOLDERS' EQUITY - Information Regarding All Stock Options (Details) - $ / shares | 12 Months Ended | |
Jan. 31, 2023 | Jan. 31, 2022 | |
Shares | ||
Stock options outstanding at beginning of year | 10,000 | 18,245 |
Cancelled or forfeited | (10,000) | (8,245) |
Stock options outstanding at end of year | 10,000 | |
Exercisable | 10,000 | |
Weighted Average Exercise Price | ||
Stock options outstanding at beginning of year | $ 18.11 | $ 23.63 |
Cancelled or forfeited | $ 18.11 | 30.32 |
Stock options outstanding at end of year | 18.11 | |
Exercisable | $ 18.11 |
STOCKHOLDERS' EQUITY - Textuals
STOCKHOLDERS' EQUITY - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | Oct. 10, 2023 | Aug. 31, 2023 | Jul. 31, 2023 | |
Stockholders Equity [Line Items] | ||||||
Aggregate number of shares authorized for repurchase | 10,000,000 | 6,813,851 | ||||
Common stock share acquired | 1,598,568 | 1,587,581 | 656,213 | |||
Aggregate purchase price | $ 26,100 | $ 26,949 | $ 17,300 | |||
Stock repurchase program, remaining shares authorized | 10,000,000 | |||||
Long-Term Incentive Stock Plan | ||||||
Stockholders Equity [Line Items] | ||||||
Shares authorized | 2,800,000 | |||||
Shares available for grant | 2,404,510 | |||||
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] | ||||||
Share-based compensation expense | $ 17,200 | 32,500 | 17,400 | |||
Unrecognized stock compensation related to unvested option awards | 32,800 | 20,800 | 21,200 | |||
Fair value of award for which restrictions lapsed | $ 23,000 | $ 20,400 | $ 10,800 | |||
Performance Shares | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting and exercise period of awards | 3 years | |||||
Lock up period after vesting | 2 years | |||||
Performance Shares | Minimum | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting and exercise period of awards | 2 years | |||||
Performance Shares | Maximum | ||||||
Stockholders Equity [Line Items] | ||||||
Vesting and exercise period of awards | 5 years |
CONCENTRATION - Textuals (Detai
CONCENTRATION - Textuals (Details) - Customer | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Customer One | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 19.20% | 21.60% | 23.90% |
Customer One | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 21.40% | 22.90% | |
Customer Two | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 13.60% | 15.40% | 14.80% |
Customer Two | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 13.30% | 13.20% | |
Customer Three | Sales Revenue, Net [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 10.10% | 12.70% | |
Customer Three | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 12.20% | 12.30% | |
Customer Four | Accounts Receivable [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration risk | 11.50% |
EMPLOYEE BENEFIT PLANS - Textua
EMPLOYEE BENEFIT PLANS - Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
EMPLOYEE BENEFIT PLANS [Abstract] | |||
Non-discretionary matching contribution | 100% | ||
Percentage of employee's compensation matched by employer | 3% | ||
Employer matching percentage of employee contributions | 50% | ||
Percentage of additional employee's compensation matched by employer | 2% | ||
Defined contribution plan, matching contributions | $ 4.3 | $ 4 | $ 0.3 |
SEGMENTS - Information Regardin
SEGMENTS - Information Regarding Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 3,098,242 | $ 3,226,728 | $ 2,766,538 |
Cost of goods sold | 1,856,395 | 2,125,591 | 1,778,349 |
Gross profit | 1,241,847 | 1,101,137 | 988,189 |
Selling, general and administrative expenses | 924,223 | 833,151 | 648,015 |
Depreciation and amortization | 27,523 | 27,762 | 27,626 |
Asset impairments | 6,758 | 349,686 | 1,455 |
Operating profit (loss) | 283,343 | (109,462) | 311,093 |
Operating Segments | Wholesale operations | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,009,614 | 3,160,025 | 2,710,787 |
Cost of goods sold | 1,839,183 | 2,127,318 | 1,782,533 |
Gross profit | 1,170,431 | 1,032,707 | 928,254 |
Selling, general and administrative expenses | 826,921 | 736,820 | 567,949 |
Depreciation and amortization | 22,505 | 23,980 | 24,023 |
Asset impairments | 7,140 | 347,722 | 368 |
Operating profit (loss) | 313,865 | (75,815) | 335,914 |
Operating Segments | Retail | |||
Segment Reporting Information [Line Items] | |||
Net sales | 148,428 | 137,231 | 117,656 |
Cost of goods sold | 77,012 | 68,801 | 57,721 |
Gross profit | 71,416 | 68,430 | 59,935 |
Selling, general and administrative expenses | 97,302 | 96,331 | 80,066 |
Depreciation and amortization | 5,018 | 3,782 | 3,603 |
Asset impairments | (382) | 1,964 | 1,087 |
Operating profit (loss) | (30,522) | (33,647) | (24,821) |
Elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (59,800) | (70,528) | (61,905) |
Cost of goods sold | $ (59,800) | $ (70,528) | $ (61,905) |
SEGMENTS - Schedule of Total Ne
SEGMENTS - Schedule of Total Net Sales by Licensed and Proprietary Product Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 3,098,242 | $ 3,226,728 | $ 2,766,538 |
Elimination | |||
Segment Reporting Information [Line Items] | |||
Net sales | (59,800) | (70,528) | (61,905) |
Wholesale operations | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 3,009,614 | 3,160,025 | 2,710,787 |
Wholesale operations | Operating Segments | Licensed Brands [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,653,259 | 1,891,522 | 1,820,491 |
Wholesale operations | Operating Segments | Proprietary Brands [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,356,355 | 1,268,503 | 890,296 |
Retail | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net sales | 148,428 | 137,231 | 117,656 |
Retail | Operating Segments | Licensed Brands [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 39,604 | ||
Retail | Operating Segments | Proprietary Brands [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 148,428 | $ 137,231 | $ 78,052 |
SEGMENTS - Information of Total
SEGMENTS - Information of Total Assets for Company's Reportable Segments (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,681,164 | $ 2,712,405 |
Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,014,689 | 839,044 |
Operating Segments | Wholesale operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,562,203 | 1,746,314 |
Operating Segments | Retail | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 104,272 | $ 127,047 |
SEGMENTS - Method of Overhead A
SEGMENTS - Method of Overhead Allocation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 3,098,242 | $ 3,226,728 | $ 2,766,538 |
Long-Lived Assets | 1,020,846 | 1,059,905 | 1,089,671 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,400,191 | 2,609,710 | 2,365,919 |
Long-Lived Assets | 605,548 | 633,799 | 938,947 |
Non-United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 698,051 | 617,018 | 400,619 |
Long-Lived Assets | $ 415,298 | $ 426,106 | $ 150,724 |
SEGMENTS - Textuals (Details)
SEGMENTS - Textuals (Details) $ in Millions | 12 Months Ended | ||
Jan. 31, 2024 USD ($) segment | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
SEGMENTS [Abstract] | |||
Number of Reportable Segments | segment | 2 | ||
Capital expenditures for outside of United States | $ | $ 15 | $ 10.5 | $ 4.3 |
KARL LAGERFELD ACQUISITION (Det
KARL LAGERFELD ACQUISITION (Detail) - Karl Lagerfeld Holding B.V. $ in Thousands | May 31, 2022 USD ($) |
Business Acquisition [Line Items] | |
Purchase price | $ 168,592 |
Plus: cash acquired | 38,499 |
Plus: aggregate adjustments to purchase price | 516 |
Initial purchase price | 207,607 |
Plus: fair value of prior minority ownership | 102,858 |
Total consideration | $ 310,465 |
KARL LAGERFELD ACQUISITION (Fai
KARL LAGERFELD ACQUISITION (Fair Value of Assets Acquired) (Details) - USD ($) $ in Thousands | Jan. 31, 2024 | Jan. 31, 2023 | May 31, 2022 | Jan. 31, 2022 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 0 | $ 0 | $ 262,527 | |
Karl Lagerfeld Holding B.V. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 38,499 | |||
Accounts receivable, net | 28,449 | |||
Inventories | 33,489 | |||
Prepaid income taxes | 1,100 | |||
Prepaid expenses and other current assets | 3,347 | |||
Property, plant and equipment, net | 11,545 | |||
Operating lease assets | 55,753 | |||
Goodwill | $ 84,300 | 84,336 | ||
Deferred income taxes | 5,131 | |||
Other long-term assets | 2,237 | |||
Total assets acquired | 447,003 | |||
Notes payable | 3,606 | |||
Accounts payable | 9,175 | |||
Accrued Expense | 15,261 | |||
Operating lease liabilities | 58,942 | |||
Income taxes payable | 2,099 | |||
Deferred income taxes. | 42,222 | |||
Other long-term liabilities | 5,233 | |||
Total liabilities assumed | 136,538 | |||
Total fair value of acquisition consideration | 310,465 | |||
Karl Lagerfeld Holding B.V. | Trade Names [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 178,823 | |||
Karl Lagerfeld Holding B.V. | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 4,294 |
KARL LAGERFELD ACQUISITION (Int
KARL LAGERFELD ACQUISITION (Intangible Assets Acquired) (Details) - Karl Lagerfeld Holding B.V. - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Business Acquisition [Line Items] | |||
Fair value | $ 183,117 | ||
Weighted average amortization period | 0 years | ||
Transaction cost | $ 5,600 | $ 5,600 | |
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Fair value | $ 178,823 | ||
Weighted average amortization period | 0 years | ||
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Fair value | $ 4,294 | ||
Weighted average amortization period | 8 years |
KARL LAGERFELD ACQUISITION - Te
KARL LAGERFELD ACQUISITION - Textual (Detail) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||||
May 31, 2022 USD ($) | May 31, 2022 EUR (€) | Jan. 31, 2023 USD ($) | Jan. 31, 2024 USD ($) | Jan. 31, 2023 USD ($) | May 30, 2022 | Jan. 31, 2022 USD ($) | Feb. 29, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | |||||||||
Recorded gain | $ 27,071 | ||||||||
Goodwill impairment | $ 347,200 | $ 5,900 | 347,172 | ||||||
Goodwill | 0 | $ 0 | 0 | $ 262,527 | |||||
Karl Lagerfeld Holding B.V. ("KLH") | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percent | 19% | 19% | |||||||
Goodwill impairment | 84,300 | ||||||||
KLNA | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percent | 49% | ||||||||
KL North America B.V. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percent | 49% | 49% | |||||||
Karl Lagerfeld Holding B.V. | |||||||||
Business Acquisition [Line Items] | |||||||||
Remaining percentage of interest | 81% | ||||||||
Initial Purchase Price | $ 207,607 | ||||||||
Business combination, consideration transferred | € | € 193.4 | ||||||||
Recorded gain | 27,100 | ||||||||
Adjustment to assets in acquisition | 36,900 | ||||||||
Adjustment to liabilities in acquisition | 36,900 | ||||||||
Goodwill | $ 84,336 | $ 84,300 | $ 84,300 | ||||||
Estimated Life | 15 years | ||||||||
Karl Lagerfeld Holding B.V. | Karl Lagerfeld Holding B.V. ("KLH") | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percent | 19% | ||||||||
Karl Lagerfeld Holding B.V. | Karl Lagerfeld Holding B.V. ("KLH") | |||||||||
Business Acquisition [Line Items] | |||||||||
Remaining percentage of interest | 81% |
EQUITY INVESTMENT - Textuals (D
EQUITY INVESTMENT - Textuals (Details) € in Millions, $ in Millions | 1 Months Ended | ||||
Feb. 29, 2016 EUR (€) | Feb. 29, 2016 USD ($) | Jun. 30, 2015 USD ($) | May 31, 2022 | May 30, 2022 | |
Karl Lagerfeld Holding B.V. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount paid to acquired interest in joint venture | € 32.5 | $ 35.4 | |||
KL North America | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Amount paid to acquired interest in joint venture | $ 25 | ||||
Karl Lagerfeld Holding B.V. ("KLH") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percent | 19% | 19% | 19% | ||
KL North America B.V. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percent | 49% | 49% | |||
Kingdom Holding 1 BV ("KH1") | Karl Lagerfeld Holding B.V. ("KLH") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percent | 81% |
RELATED PARTY TRANSACTIONS - Te
RELATED PARTY TRANSACTIONS - Textuals (Details) - USD ($) $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | May 30, 2022 | Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | May 31, 2022 | May 29, 2022 | |
Related Party Transaction [Line Items] | |||||||
Repurchases of common stock | $ 26,100 | $ 26,949 | $ 17,300 | ||||
KLNA | |||||||
Related Party Transaction [Line Items] | |||||||
Percent of interest acquired in joint venture | 49% | ||||||
Related Party | KLNA | |||||||
Related Party Transaction [Line Items] | |||||||
Percent of interest acquired in joint venture | 49% | ||||||
Related Party | E Commerce Retailer | E Commerce Retailer | |||||||
Related Party Transaction [Line Items] | |||||||
Investment | $ 25,000 | ||||||
Related Party | KLNA | |||||||
Related Party Transaction [Line Items] | |||||||
Royalty and advertising expense | $ 3,600 | $ 8,100 | |||||
Related Party | Chief Executive Officer | E Commerce Retailer | E Commerce Retailer | |||||||
Related Party Transaction [Line Items] | |||||||
Percentage of ownership interest | 1.40% | ||||||
Related Party | President | |||||||
Related Party Transaction [Line Items] | |||||||
Shares repurchased | 208,943 | ||||||
Repurchases of common stock | $ 4,100 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 108,057 | $ 104,179 | $ 116,814 |
Charges to Cost and Expenses | 204,979 | 188,310 | 137,237 |
Deductions | 227,511 | 184,432 | 149,872 |
Balance at End of Period | 85,525 | 108,057 | 104,179 |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 18,297 | 17,391 | 17,459 |
Charges to Cost and Expenses | (163) | 978 | 157 |
Deductions | 16,663 | 72 | 225 |
Balance at End of Period | 1,471 | 18,297 | 17,391 |
Reserve for returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 30,610 | 30,821 | 40,704 |
Charges to Cost and Expenses | 32,022 | 31,944 | 19,475 |
Deductions | 33,322 | 32,155 | 29,358 |
Balance at End of Period | 29,310 | 30,610 | 30,821 |
Reserve for sales allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 59,150 | 55,967 | 58,651 |
Charges to Cost and Expenses | 173,120 | 155,388 | 117,605 |
Deductions | 177,526 | 152,205 | 120,289 |
Balance at End of Period | $ 54,744 | $ 59,150 | $ 55,967 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 31, 2024 | Jan. 31, 2023 | Jan. 31, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 176,168 | $ (133,061) | $ 200,593 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jan. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |