Business Combinations (Tables)

12 Months Ended

Jan. 28, 2023

Business Combinations

Summary of our preliminary allocation of the purchase price

The following table summarizes our preliminary allocation of the purchase price for the Johnny Was acquisition (in thousands):

	Johnny Was acquisition
Cash and cash equivalents	$	7,296
Receivables		8,777
Inventories (1)		23,434
Prepaid expenses and other assets		6,353
Property and equipment		21,108
Intangible assets		134,640
Goodwill		96,637
Operating lease assets		54,859
Accounts payable, accrued expenses and other liabilities		(34,777)
Non-current portion of operating lease liabilities		(47,009)
Purchase price	$	271,318

(1) Includes an estimate for the step-up of acquired inventory from cost to fair value of $4 million pursuant to the purchase method of accounting, which was recognized in our consolidated statement of operations in Fiscal 2022 as acquired inventory was sold.

Summary of Intangible assets allocated in connection with our preliminary purchase price allocation

We acquired tradenames and trademarks as well as customer relationships as part of the acquisition. We used the relief from royalty method to estimate the fair value of trademarks and tradenames and the multi-period excess earnings method under the income approach to estimate the fair value of customer relationships. Intangible assets allocated in connection with our preliminary purchase price allocation consisted of the following (in thousands):

		Johnny Was
	Useful life	acquisition
Finite lived intangible assets acquired, primarily consisting of customer relationships	8 - 13 years	$	56,740
Trade names and trademarks	Indefinite		77,900
		$	134,640

Schedule of pro forma statements of operations

Schedule of pro forma statements of operations

	Fiscal 2022		Fiscal 2021
Net sales	$	1,546,371	$	1,327,875
Earnings before income taxes	$	237,919	$	169,832
Net earnings	$	182,380	$	135,276
Earnings per share:
Basic	$	11.47	$	8.02
Diluted	$	11.22	$	8.13