Karl Lagerfeld Acquisition (Tables)

9 Months Ended

Oct. 31, 2022

Business Combinations [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		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		27,331
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		45,894
Trademarks		178,823
Customer relationships		4,294
Investments in unconsolidated affiliates		1,381
Deferred income taxes		9,183
Other long-term assets		2,237
Total assets acquired	$	412,876
Notes payable		3,606
Accounts payable		8,057
Accrued expenses		15,261
Operating lease liabilities		58,942
Income taxes payable		2,099
Other long-term liabilities		5,233
Total liabilities assumed	$	93,198
Total fair value of acquisition consideration	$	319,678

Schedule of identifiable intangible assets

			Weighted Average
	Fair Value		Amortization Period
Trademarks	$	178,823		—
Customer relationships		4,294		8
	$	183,117		—

Schedule of pro forma consolidated results of operations

	Three Months Ended October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
	(unaudited, in thousands, except per share amounts)
Net sales	$	1,078,299	$	1,054,143	$	2,441,024	$	2,127,604
Net income		63,729		105,240		105,428		168,397
Earnings per share:
Basic		1.33		2.17		2.20		3.48
Diluted		1.30		2.13		2.15		3.40