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.