RELATED PARTY TRANSACTIONS

12 Months Ended

Jan. 31, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE N — RELATED PARTY TRANSACTIONS

Transactions with Fabco

G-III owns a 49% ownership interest in Fabco and is considered a related party of Fabco (see Note M). The Company sells inventory to Fabco and granted Fabco’s subsidiary the right to use certain Donna Karan and DKNY trademarks. In fiscal 2019, the Company sold $4.3 million in inventory to Fabco. The Company recorded $2.2 million and $0.2 million of licensing revenue from Fabco during the years ended January 31, 2019 and 2018, respectively. As of January 31, 2019, Fabco prepaid $0.8 million to the Company for minimum royalties and marketing fees relating to the first quarter of 2019 and has a $0.5 million payable balance relating to inventory purchased from the Company and its subsidiaries.

Transactions with KL North America

G-III owns a 49% ownership interest in KLNA and is considered a related party of KLNA (see note M). 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 $6.4 million, $4.8 million and $4.0 million for the years ended January 31, 2019, 2018 and 2017, respectively. The amount of royalty and advertising due to KLNA as of January 31, 2019, 2018 and 2017 was $2.1 million, $1.5 million and $0.7 million, respectively.