SEGMENTS

3 Months Ended

Apr. 30, 2022

Segments [Abstract]

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 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 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, Andrew Marc 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-month periods indicated below:

	Three Months Ended April 30, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	680,904	$	27,885	$	(20,032)	$	688,757
Cost of goods sold		448,769		13,981		(20,032)		442,718
Gross profit		232,135		13,904		—		246,039
Selling, general and administrative expenses		161,808		23,599		—		185,407
Depreciation and amortization		5,414		681		—		6,095
Operating profit (loss)	$	64,913	$	(10,376)	$	—	$	54,537

	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

(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				Year Ended
	April 30, 2022		April 30, 2021		January 31, 2022
	(In thousands)
Licensed brands	$	459,984	$	341,165	$	1,820,491
Proprietary brands		220,920		170,349		890,296
Wholesale net sales	$	680,904	$	511,514	$	2,710,787
Licensed brands	$	13,928	$	6,534	$	39,604
Proprietary brands		13,957		12,885		78,052
Retail net sales	$	27,885	$	19,419	$	117,656