Segments

3 Months Ended

Apr. 30, 2021

Segments [Abstract]

SEGMENTS

Note 10 – 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, which, prior to the completion of the retail restructuring in fiscal 2021, consisted primarily of Wilsons Leather, G.H. Bass, DKNY and Karl Lagerfeld Paris stores, substantially all of which were 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 closed its Wilsons Leather, G.H. Bass and Calvin Klein Performance retail stores during fiscal 2021. After completion of the restructuring, the Company’s retail operations segment consists of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels for DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass, Andrew Marc and Wilsons Leather.

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

	Three Months Ended April 30, 2021
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	511,514	$	19,419	$	(11,023)	$	519,910
Cost of goods sold		325,821		9,643		(11,023)		324,441
Gross profit		185,693		9,776		—		195,469
Selling, general and administrative expenses		125,334		16,269		—		141,603
Depreciation and amortization		6,212		832		—		7,044
Operating profit (loss)	$	54,147	$	(7,325)	$	—	$	46,822

	Three Months Ended April 30, 2020
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	378,871	$	33,908	$	(7,648)	$	405,131
Cost of goods sold		266,639		21,739		(7,648)		280,730
Gross profit		112,232		12,169		—		124,401
Selling, general and administrative expenses		112,600		42,020		—		154,620
Depreciation and amortization		8,292		1,575		—		9,867
(Gain) loss on lease modifications		(5)		3,192		—		3,187
Operating loss	$	(8,655)	$	(34,618)	$	—	$	(43,273)

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