Segments

6 Months Ended

Jul. 31, 2021

Segments [Abstract]

SEGMENTS

Note 10 – Segments

The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, which, prior to the completion of the retail restructuring in fiscal 2021, consisted primarily of Wilsons Leather, G.H. Bass, DKNY and Karl Lagerfeld Paris stores, substantially all of which were operated as outlet stores. Sales through Company-owned channels, with the exception of Vilebrequin, are also included in the retail operations segment. As a result of the restructuring of the Company’s retail operations, the Company closed its Wilsons Leather, G.H. Bass and Calvin Klein Performance retail stores during fiscal 2021. After completion of the restructuring, the Company’s retail operations segment consists of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass, Andrew Marc and Wilsons Leather.

The following segment information is presented for the three-month periods indicated below:

	Three Months Ended July 31, 2021
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	467,013	$	27,285	$	(11,217)	$	483,081
Cost of goods sold		288,306		13,114		(11,217)		290,203
Gross profit		178,707		14,171		—		192,878
Selling, general and administrative expenses		129,291		17,549		—		146,840
Depreciation and amortization		6,086		1,012		—		7,098
Operating profit (loss)	$	43,330	$	(4,390)	$	—	$	38,940

	Three Months Ended July 31, 2020
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	266,809	$	34,507	$	(4,104)	$	297,212
Cost of goods sold		143,340		23,283		(4,104)		162,519
Gross profit		123,469		11,224		—		134,693
Selling, general and administrative expenses		76,727		45,375		—		122,102
Depreciation and amortization		8,392		1,299		—		9,691
(Gain) loss on lease modifications		612		13,690		—		14,302
Operating loss	$	37,738	$	(49,140)	$	—	$	(11,402)

	Six Months Ended July 31, 2021
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	978,527	$	46,704	$	(22,240)	$	1,002,991
Cost of goods sold		614,127		22,757		(22,240)		614,644
Gross profit		364,400		23,947		—		388,347
Selling, general and administrative expenses		254,625		33,818		—		288,443
Depreciation and amortization		12,299		1,843		—		14,142
Asset impairments, net of gain on lease modifications		—		—		—		—
Operating profit (loss)	$	97,476	$	(11,714)	$	—	$	85,762

	Six Months Ended July 31, 2020
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	645,681	$	68,415	$	(11,753)	$	702,343
Cost of goods sold		409,981		45,021		(11,753)		443,249
Gross profit		235,700		23,394		—		259,094
Selling, general and administrative expenses		189,327		87,395		—		276,722
Depreciation and amortization		16,683		2,875		—		19,558
Gain on lease modifications		608		16,881		—		17,489
Operating profit (loss)	$	29,082	$	(83,757)	$	—	$	(54,675)

(1)Represents intersegment sales to the Company’s retail operations segment.