Segments

6 Months Ended

Jul. 31, 2020

Segments [Abstract]

SEGMENTS

Note 11 – 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 under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin business. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Vilebrequin, G.H. Bass and Andrew Marc. The retail operations segment consists primarily of direct sales to consumers through Company-operated stores, consisting primarily of Wilsons Leather, G.H. Bass and DKNY stores, substantially all of which are operated as outlet stores. Sales through Company-owned channels, with the exception of Vilebrequin, are also included in the retail operations segment. As a result of the restructuring of the Company’s retail operations, the Company is in the process of closing all of its Wilsons Leather and G.H. Bass retail stores. After completion of the restructuring, the Company’s retail operations segment will consist of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass.

The following segment information is presented for the three and six-month periods indicated below:

	Three Months Ended July 31, 2020
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	266,809	$	34,507	$	(4,104)	$	297,212
Cost of goods sold		143,340		23,283		(4,104)		162,519
Gross profit		123,469		11,224		—		134,693
Selling, general and administrative expenses		76,727		45,375		—		122,102
Depreciation and amortization		8,392		1,299		—		9,691
Asset impairments, net of gain on lease modifications		612		13,690		—		14,302
Operating profit (loss)	$	37,738	$	(49,140)	$	—	$	(11,402)

	Three Months Ended July 31, 2019
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	588,601	$	83,706	$	(28,415)	$	643,892
Cost of goods sold		395,728		44,810		(28,415)		412,123
Gross profit		192,873		38,896		—		231,769
Selling, general and administrative expenses		141,540		54,908		—		196,448
Depreciation and amortization		7,763		2,026		—		9,789
Gain on lease modifications		—		(1,393)		—		(1,393)
Operating profit (loss)	$	43,570	$	(16,645)	$	—	$	26,925

	Six Months Ended July 31, 2020
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	645,681	$	68,415	$	(11,753)	$	702,343
Cost of goods sold		409,981		45,021		(11,753)		443,249
Gross profit		235,700		23,394		—		259,094
Selling, general and administrative expenses		189,327		87,395		—		276,722
Depreciation and amortization		16,683		2,875		—		19,558
Asset impairments, net of gain on lease modifications		608		16,881		—		17,489
Operating profit (loss)	$	29,082	$	(83,757)	$	—	$	(54,675)

	Six Months Ended July 31, 2019
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,159,240	$	165,610	$	(47,406)	$	1,277,444
Cost of goods sold		767,308		89,709		(47,406)		809,611
Gross profit		391,932		75,901		—		467,833
Selling, general and administrative expenses		288,797		109,510		—		398,307
Depreciation and amortization		15,284		3,978		—		19,262
Gain on lease modifications		—		(2,222)		—		(2,222)
Operating profit (loss)	$	87,851	$	(35,365)	$	—	$	52,486

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

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

	July 31, 2020		July 31, 2019		January 31, 2020
	(In thousands)
Wholesale	$	1,685,530	$	2,109,198	$	1,912,175
Retail		139,373		362,595		272,832
Corporate		444,911		240,643		380,130
Total assets	$	2,269,814	$	2,712,436	$	2,565,137