Karl Lagerfeld Acquisition (Tables)

6 Months Ended

Jul. 31, 2022

Business Combinations [Abstract]

Schedule of total consideration paid for acquisition

The total consideration paid 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		9,729
Initial purchase price		216,820
Plus: fair value of prior minority ownership		102,858
Total consideration	$	319,678

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		28,146
Inventories		32,308
Prepaid income taxes		1,100
Prepaid expenses and other current assets		3,347
Property, plant and equipment, net		11,545
Operating lease assets		52,983
Goodwill		46,113
Trademarks		178,823
Customer relationships		4,401
Investments in unconsolidated affiliates		1,381
Deferred income taxes		9,183
Other long-term assets		2,237
Total assets acquired	$	410,066
Notes payable		3,606
Accounts payable		8,057
Accrued expenses		15,261
Operating lease liabilities		56,132
Income taxes payable		2,099
Other long-term liabilities		5,233
Total liabilities assumed	$	90,388
Total fair value of acquisition consideration	$	319,678

Schedule of identifiable intangible assets

			Weighted Average
	Fair Value		Amortization Period
Trademarks	$	178,823		—
Customer relationships		4,401		8
	$	183,224		—

Schedule of pro forma consolidated results of operations

	Three Months Ended July 31,				Six Months Ended July 31,
	2022		2021		2022		2021
	(unaudited, in thousands, except per share amounts)
Net sales	$	628,050	$	518,258	$	1,362,811	$	1,073,929
Net income		11,844		39,316		42,060		63,289
Earnings per share:
Basic		0.25		0.81		0.88		1.31
Diluted		0.24		0.79		0.86		1.28