SEGMENTS

9 Months Ended

Oct. 31, 2024

SEGMENTS

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 and nine month periods indicated below:

	Three Months Ended October 31, 2024
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,066,635	$	42,333	$	(22,209)	$	1,086,759
Cost of goods sold		656,659		20,178		(22,209)		654,628
Gross profit		409,976		22,155		—		432,131
Selling, general and administrative expenses		235,628		23,612		—		259,240
Depreciation and amortization		5,674		882		—		6,556
Operating profit (loss)	$	168,674	$	(2,339)	$	—	$	166,335

	Three Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,054,303	$	32,711	$	(19,904)	$	1,067,110
Cost of goods sold		636,961		16,640		(19,904)		633,697
Gross profit		417,342		16,071		—		433,413
Selling, general and administrative expenses		213,263		23,045		—		236,308
Depreciation and amortization		5,475		1,120		—		6,595
Asset impairments		222		—		—		222
Operating profit (loss)	$	198,382	$	(8,094)	$	—	$	190,288

	Nine Months Ended October 31, 2024
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,284,710	$	110,060	$	(53,509)	$	2,341,261
Cost of goods sold		1,374,544		53,328		(53,509)		1,374,363
Gross profit		910,166		56,732		—		966,898
Selling, general and administrative expenses		658,645		66,246		—		724,891
Depreciation and amortization		17,113		3,591		—		20,704
Operating profit (loss)	$	234,408	$	(13,105)	$	—	$	221,303

	Nine Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,280,391	$	97,268	$	(44,199)	$	2,333,460
Cost of goods sold		1,369,315		48,478		(44,199)		1,373,594
Gross profit		911,076		48,790		—		959,866
Selling, general and administrative expenses		633,841		69,635		—		703,476
Depreciation and amortization		16,247		2,883		—		19,130
Asset impairments		222		—		—		222
Operating profit (loss)	$	260,766	$	(23,728)	$	—	$	237,038

(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				Nine Months Ended
	October 31, 2024		October 31, 2023		October 31, 2024		October 31, 2023
	(In thousands)
Licensed brands	$	560,780	$	625,231	$	1,109,630	$	1,261,894
Proprietary brands		505,855		429,072		1,175,080		1,018,497
Wholesale net sales	$	1,066,635	$	1,054,303	$	2,284,710	$	2,280,391
Licensed brands	$	—	$	—	$	—	$	—
Proprietary brands		42,333		32,711		110,060		97,268
Retail net sales	$	42,333	$	32,711	$	110,060	$	97,268

The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:

	October 31, 2024		October 31, 2023		January 31, 2024
	(In thousands)
Wholesale	$	1,611,042	$	1,700,179	$	1,562,203
Retail		115,505		120,080		104,272
Corporate		1,057,064		929,074		1,014,689
Total assets	$	2,783,611	$	2,749,333	$	2,681,164