SEGMENTS

12 Months Ended

Jan. 31, 2025

SEGMENTS

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 platforms. Wholesale revenues also include revenues from license agreements related to trademarks associated with the Company’s

owned brands. 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 Company determines its operating segments based on how the chief operating decision maker (“CODM”) views and analyzes each segment’s operations and performance. The Company’s CODM is its Chief Executive Officer. The CODM utilizes operating profit or loss as the measure of segment profit or loss. The CODM uses operating profit or loss to determine resource allocation and operational decisions for matters including, but not limited to, compensation, advertising and facilities needs.

All historical financial segment information has been recast to conform to the new disclosure requirements under ASU 2023-07.

The following segment information, in thousands, is presented for the fiscal years ended:

	January 31, 2025
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	3,083,749	$	166,464	$	(69,417)	$	3,180,796
Cost of goods sold		1,869,199		82,488		(69,417)		1,882,270
Gross profit		1,214,550		83,976		—		1,298,526
Selling, general and administrative expenses:
Compensation		374,896		31,606		—		406,502
Facility fees		206,387		32,830		—		239,217
Advertising		132,381		14,424		—		146,805
Other segment items(2)		162,675		14,613		—		177,288
Total selling, general and administrative expenses		876,339		93,473		—		969,812
Depreciation and amortization		22,951		4,493		—		27,444
Asset impairments		8,195		—		—		8,195
Operating profit (loss)	$	307,065	$	(13,990)	$	—	$	293,075

	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:
Compensation		353,380		35,364		—		388,744
Facility fees		207,055		35,943		—		242,998
Advertising		111,109		11,456		—		122,565
Other segment items(2)		155,377		14,539		—		169,916
Total 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:
Compensation		284,454		35,146		—		319,600
Facility fees		204,092		37,403		—		241,495
Advertising		121,321		10,244		—		131,565
Other segment items(2)		126,953		13,538		—		140,491
Total 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)

(1) Represents intersegment sales to the Company’s retail operations segment.

(2) Other segment items include design and product development costs, professional fees, office expenses, freight and packaging and other selling, general and administrative expenses.

The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:

	January 31,
	2025		2024		2023
	(In thousands)
Licensed brands	$	1,525,658	$	1,653,259	$	1,891,522
Proprietary brands		1,558,091		1,356,355		1,268,503
Wholesale net sales(1)	$	3,083,749	$	3,009,614	$	3,160,025
Licensed brands	$	—	$	—	$	—
Proprietary brands		166,464		148,428		137,231
Retail net sales	$	166,464	$	148,428	$	137,231

(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,
	2025		2024
	(In thousands)
Wholesale	$	1,508,111	$	1,562,203
Retail		97,226		104,272
Corporate		877,897		1,014,689
Total Assets	$	2,483,234	$	2,681,164

The total net sales and long-lived assets by geographic region are as follows:

	2025				2024				2023
			Long-Lived				Long-Lived				Long-Lived
Geographic Region	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	2,461,443	$	685,110	$	2,400,191	$	605,548	$	2,609,710	$	633,799
Non-United States		719,353		462,770		698,051		415,298		617,018		426,106
	$	3,180,796	$	1,147,880	$	3,098,242	$	1,020,846	$	3,226,728	$	1,059,905

Capital expenditures for locations outside of the United States totaled $18.1 million, $15.0 million and $10.5 million for the years ended January 31, 2025, 2024 and 2023, respectively.