SEGMENTS

12 Months Ended

Jan. 31, 2023

SEGMENTS [Abstract]

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 under the Company’s owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, other than sales of the Karl Lagerfeld Paris brand from retail stores and digital outlets. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, G.H. Bass and Andrew Marc and Sonia Rykiel. 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 are operated as outlet stores. Sales through Company-owned digital 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, in thousands, is presented for the fiscal years ended:

	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		736,820		96,331		—		833,151
Depreciation and amortization		23,980		3,782		—		27,762
Asset impairments and gain on lease terminations		347,722		1,964		—		349,686
Operating profit (loss)	$	(75,815)	$	(33,647)	$	—	$	(109,462)

	January 31, 2022
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	2,710,787	$	117,656	$	(61,905)	$	2,766,538
Cost of goods sold		1,782,533		57,721		(61,905)		1,778,349
Gross profit		928,254		59,935		—		988,189
Selling, general and administrative expenses		567,949		80,066		—		648,015
Depreciation and amortization		24,023		3,603		—		27,626
Asset impairments and gain on lease terminations		368		1,087		—		1,455
Operating profit (loss)	$	335,914	$	(24,821)	$	—	$	311,093

	January 31, 2021
	Wholesale		Retail		Elimination (1)		Total
Net sales	$	1,916,763	$	170,421	$	(32,038)	$	2,055,146
Cost of goods sold		1,229,548		113,194		(32,038)		1,310,704
Gross profit		687,215		57,227		—		744,442
Selling, general and administrative expenses		444,549		160,553		—		605,102
Depreciation and amortization		31,998		6,627		—		38,625
Asset impairments and gain on lease terminations		1,010		16,863		—		17,873
Operating profit (loss)	$	209,658	$	(126,816)	$	—	$	82,842

(2) 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:

	January 31,
	2023		2022		2021
	(In thousands)
Licensed brands	$	1,891,522	$	1,820,491	$	1,390,112
Proprietary brands		1,268,503		890,296		526,651
Wholesale net sales	$	3,160,025	$	2,710,787	$	1,916,763
Licensed brands	$	—	$	39,604	$	17,488
Proprietary brands		137,231		78,052		152,933
Retail net sales	$	137,231	$	117,656	$	170,421

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,
	2023		2022
	(In thousands)
Wholesale	$	1,746,314	$	2,073,834
Retail		127,047		111,517
Corporate		839,044		557,177
Total Assets	$	2,712,405	$	2,742,528

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

	2023				2022				2021
			Long-Lived				Long-Lived				Long-Lived
Geographic Region	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	2,609,710	$	633,799	$	2,365,919	$	938,947	$	1,755,791	$	834,181
Non-United States		617,018		426,106		400,619		150,724		299,355		258,165
	$	3,226,728	$	1,059,905	$	2,766,538	$	1,089,671	$	2,055,146	$	1,092,346

Capital expenditures for locations outside of the United States totaled $10.5 million, $4.3 million and $3.0 million for the years ended January 31, 2023, 2022 and 2021, respectively.