SEGMENTS

3 Months Ended

Apr. 30, 2024

SEGMENTS [Abstract]

SEGMENTS

NOTE 9 – 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 royalty 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 is presented for the three month periods indicated below:

	Three Months Ended April 30, 2024
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	597,766	$	30,528	$	(18,547)	$	609,747
Cost of goods sold		353,228		16,173		(18,547)		350,854
Gross profit		244,538		14,355		—		258,893
Selling, general and administrative expenses		215,575		21,046		—		236,621
Depreciation and amortization		7,015		1,753		—		8,768
Operating profit (loss)	$	21,948	$	(8,444)	$	—	$	13,504

	Three Months Ended April 30, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	586,903	$	30,217	$	(10,531)	$	606,589
Cost of goods sold		352,470		14,849		(10,531)		356,788
Gross profit		234,433		15,368		—		249,801
Selling, general and administrative expenses		204,089		23,872		—		227,961
Depreciation and amortization		5,745		831		—		6,576
Operating profit (loss)	$	24,599	$	(9,335)	$	—	$	15,264

(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:

	Three Months Ended
	April 30, 2024		April 30, 2023
	(In thousands)
Licensed brands	$	261,706	$	298,005
Proprietary brands		336,060		288,898
Wholesale net sales	$	597,766	$	586,903
Licensed brands	$	—	$	—
Proprietary brands		30,528		30,217
Retail net sales	$	30,528	$	30,217