10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2023

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from          to       

Commission File Number: 0-18183

 G-III APPAREL GROUP, LTD.

(Exact name of registrant as specified in its charter) 

Delaware	41-1590959
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
512 Seventh Avenue, New York, New York	10018
(Address of principal executive offices)	(Zip Code)

(212) 403-0500

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	GIII	The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)  Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐    No ☒

As of December 4, 2023, there were 45,727,662 shares of issuer’s common stock, par value $0.1 per share, outstanding.

TABLE OF CONTENTS

		Page No.
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets – October 31, 2023 (Unaudited), October 31, 2022 (Unaudited) and January 31, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income – For the Three and Nine Months Ended October 31, 2023 and 2022 (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity – October 31, 2023 and October 31, 2022 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows – For the Nine Months Ended October 31, 2023 and 2022 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33
Part II	OTHER INFORMATION
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 5.	Other Information	34
Item 6.	Exhibits	35

7

2

PART I – FINANCIAL INFORMATION

Item 1.          Financial Statements.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	October 31,		October 31,		January 31,
	2023		2022		2023
	(Unaudited)		(Unaudited)
	(In thousands, except per share amounts)
ASSETS
Current assets
Cash and cash equivalents	$	197,391	$	150,719	$	191,652
Accounts receivable, net of allowance for doubtful accounts of $18,412 $18,258 and $18,297, respectively		863,221		881,135		674,963
Inventories		591,530		900,987		709,345
Prepaid income taxes		2,216		1,110		5,886
Prepaid expenses and other current assets		58,779		50,594		70,654
Total current assets		1,713,137		1,984,545		1,652,500
Investments in unconsolidated affiliates		24,354		25,870		24,467
Property and equipment, net		52,032		54,185		53,742
Operating lease assets		221,474		216,663		239,665
Other assets, net		53,852		54,206		52,644
Other intangibles, net		32,565		34,585		34,842
Deferred income tax assets, net		26,389		8,973		26,389
Trademarks		625,530		607,526		628,156
Goodwill		—		303,668		—
Total assets	$	2,749,333	$	3,290,221	$	2,712,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of notes payable	$	59,099	$	91,613	$	135,518
Accounts payable		179,396		223,154		169,508
Accrued expenses		153,200		150,349		115,586
Customer refund liabilities		108,042		99,528		89,760
Current operating lease liabilities		55,897		50,645		52,917
Income tax payable		46,380		26,956		14,875
Other current liabilities		330		933		905
Total current liabilities		602,344		643,178		579,069
Notes payable, net of discount and unamortized issuance costs		402,846		787,892		483,840
Deferred income tax liabilities, net		44,265		34,894		44,783
Noncurrent operating lease liabilities		183,522		185,171		204,974
Other noncurrent liabilities		14,543		16,787		15,141
Total liabilities		1,247,520		1,667,922		1,327,807
Redeemable noncontrolling interests		(1,407)		41		(850)
Stockholders' Equity
Preferred stock; 1,000 shares authorized; no shares issued		—		—		—
Common stock - $0.01 par value; 120,000 shares authorized; 49,396, 49,396 and 49,396 shares issued, respectively		264		264		264
Additional paid-in capital		453,504		465,230		468,712
Accumulated other comprehensive loss		(15,995)		(42,744)		(11,653)
Retained earnings		1,131,258		1,245,061		983,944
Common stock held in treasury, at cost - 3,670, 1,907 and 2,680 shares, respectively		(65,811)		(45,553)		(55,819)
Total stockholders' equity		1,503,220		1,622,258		1,385,448
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	2,749,333	$	3,290,221	$	2,712,405

The accompanying notes are an integral part of these statements.

3

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(Unaudited)
	(In thousands, except per share amounts)
Net sales	$	1,067,110	$	1,078,299	$	2,333,460	$	2,372,300
Cost of goods sold		633,697		733,672		1,373,594		1,552,708
Gross profit		433,413		344,627		959,866		819,592
Selling, general and administrative expenses		236,308		239,893		703,476		616,351
Depreciation and amortization		6,595		7,270		19,130		20,021
Asset impairments and gain on lease terminations		222		250		222		212
Operating profit		190,288		97,214		237,038		183,008
Other (loss) income		(3,129)		(2,795)		(1,964)		24,823
Interest and financing charges, net		(11,024)		(16,052)		(32,666)		(40,805)
Income before income taxes		176,135		78,367		202,408		167,026
Income tax expense		48,755		17,521		55,651		39,489
Net income		127,380		60,846		146,757		127,537
Less: Loss attributable to noncontrolling interests		(260)		(257)		(557)		(519)
Net income attributable to G-III Apparel Group, Ltd.	$	127,640	$	61,103	$	147,314	$	128,056
NET INCOME PER COMMON SHARE ATTRIBUTABLE TO G-III APPAREL GROUP, LTD.:
Basic:
Net income per common share	$	2.79	$	1.29	$	3.21	$	2.68
Weighted average number of shares outstanding		45,723		47,488		45,904		47,832
Diluted:
Net income per common share	$	2.74	$	1.26	$	3.13	$	2.62
Weighted average number of shares outstanding		46,560		48,475		46,992		48,866
Net income	$	127,380	$	60,846	$	146,757	$	127,537
Other comprehensive loss:
Foreign currency translation adjustments		(11,391)		(26,473)		(4,317)		(28,111)
Other comprehensive loss		(11,391)		(26,473)		(4,317)		(28,111)
Comprehensive income	$	115,989	$	34,373	$	142,440	$	99,426
Comprehensive loss attributable to noncontrolling interests:
Net loss		(260)		(257)		(557)		(519)
Foreign currency translation adjustments		(1)		(45)		(25)		(104)
Comprehensive loss attributable to noncontrolling interests		(261)		(302)		(582)		(623)
Comprehensive income attributable to G-III Apparel Group, Ltd.	$	115,728	$	34,071	$	141,858	$	98,803

The accompanying notes are an integral part of these statements.

4

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

					Accumulated				Common
			Additional		Other				Stock
	Common		Paid-In		Comprehensive		Retained		Held In
	Stock		Capital		Loss		Earnings		Treasury		Total
	(Unaudited)
	(In thousands)
Balance as of July 31, 2023	$	264	$	448,762	$	(4,603)	$	1,003,618	$	(65,926)	$	1,382,115
Equity awards vested, net		—		(115)		—		—		115		—
Share-based compensation expense		—		4,890		—		—		—		4,890
Taxes paid for net share settlements		—		(33)		—		—		—		(33)
Other comprehensive loss, net		—		—		(11,392)		—		—		(11,392)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		127,640		—		127,640
Balance as of October 31, 2023	$	264	$	453,504	$	(15,995)	$	1,131,258	$	(65,811)	$	1,503,220
Balance as of July 31, 2022	$	264	$	461,621	$	(16,226)	$	1,183,958	$	(45,616)	$	1,584,001
Equity awards vested, net		—		(63)		—		—		63		—
Share-based compensation expense		—		3,672		—		—		—		3,672
Other comprehensive loss, net		—		—		(26,518)		—		—		(26,518)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		61,103		—		61,103
Balance as of October 31, 2022	$	264	$	465,230	$	(42,744)	$	1,245,061	$	(45,553)	$	1,622,258
Balance as of January 31, 2023	$	264	$	468,712	$	(11,653)	$	983,944	$	(55,819)	$	1,385,448
Equity awards vested, net		—		(16,108)		—		—		16,108		—
Share-based compensation expense		—		11,728		—		—		—		11,728
Taxes paid for net share settlements		—		(10,828)		—		—		—		(10,828)
Other comprehensive loss, net		—		—		(4,342)		—		—		(4,342)
Repurchases of common stock		—		—		—		—		(26,100)		(26,100)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		147,314		—		147,314
Balance as of October 31, 2023	$	264	$	453,504	$	(15,995)	$	1,131,258	$	(65,811)	$	1,503,220
Balance as of January 31, 2022	$	264	$	456,329	$	(14,529)	$	1,117,005	$	(39,157)	$	1,519,912
Equity awards vested, net		—		(10,226)		—		—		10,226		—
Share-based compensation expense		—		28,917		—		—		—		28,917
Taxes paid for net share settlements		—		(9,790)		—		—		—		(9,790)
Other comprehensive loss, net		—		—		(28,215)		—		—		(28,215)
Repurchases of common stock		—		—		—		—		(16,622)		(16,622)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		128,056		—		128,056
Balance as of October 31, 2022	$	264	$	465,230	$	(42,744)	$	1,245,061	$	(45,553)	$	1,622,258

The accompanying notes are an integral part of these statements.

5

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended October 31,
	2023		2022
	(Unaudited, in thousands)
Cash flows from operating activities
Net income attributable to G-III Apparel Group, Ltd.	$	147,314	$	128,056
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		19,130		20,021
Loss on disposal of fixed assets		239		127
Non-cash operating lease costs		43,467		38,264
Gain on lease terminations		—		(38)
Asset impairment		222		250
Equity gain (loss) in unconsolidated affiliates		3,725		(817)
Change in fair value of equity securities		(1,009)		1,182
Share-based compensation		11,728		28,917
Deferred financing charges and debt discount amortization		6,054		7,629
Deferred income taxes		(519)		(1,347)
Non-cash gain on fair value of prior minority ownership of Karl Lagerfeld		—		(30,925)
Changes in operating assets and liabilities:
Accounts receivable, net		(188,258)		(248,280)
Inventories		117,815		(355,313)
Income taxes, net		35,175		29,444
Prepaid expenses and other current assets		12,636		5,274
Other assets, net		(3,044)		(718)
Customer refund liabilities		18,282		12,740
Operating lease liabilities		(43,750)		(38,312)
Accounts payable, accrued expenses and other liabilities		47,064		(11,484)
Net cash provided by (used in) operating activities		226,271		(415,330)
Cash flows from investing activities
Operating lease assets initial direct costs		(52)		(85)
Investment in e-commerce retailer		—		(25,000)
Investment in equity interest of private company		(3,600)		—
Investment in equity securities		—		(22,378)
Sale of equity securities		—		22,434
Capital expenditures		(15,653)		(14,803)
Acquisition of KLH, net of cash acquired		—		(168,592)
Acquisition of other foreign business, net of cash required		—		(2,701)
Net cash used in investing activities		(19,305)		(211,125)
Cash flows from financing activities
Repayment of borrowings - revolving facility		(112,826)		(172,513)
Proceeds from borrowings - revolving facility		32,738		512,748
Repayment of borrowings - LVMH Note		(75,000)		—
Repayment of borrowings - foreign facilities		(106,100)		(28,512)
Proceeds from borrowings - foreign facilities		99,032		36,863
Purchase of treasury shares		(26,100)		(16,622)
Taxes paid for net share settlements		(10,828)		(9,790)
Net cash (used in) provided by financing activities		(199,084)		322,174
Foreign currency translation adjustments		(2,143)		(10,984)
Net increase (decrease) in cash and cash equivalents		5,739		(315,265)
Cash and cash equivalents at beginning of period		191,652		465,984
Cash and cash equivalents at end of period	$	197,391	$	150,719
Supplemental disclosures of cash flow information
Cash payments:
Interest, net	$	32,882	$	38,391
Income tax payments, net	$	20,195	$	4,643

The accompanying notes are an integral part of these statements.

6

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

As used in these financial statements, the term “Company” or “G-III” refers to G-III Apparel Group, Ltd. and its subsidiaries. The Company designs, sources and markets an extensive range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company also operates retail stores and licenses its proprietary brands under several product categories.

The Company consolidates the accounts of its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that is 75% owned by the Company and is treated as a consolidated majority-owned subsidiary. Sonia Rykiel is a wholly-owned operating subsidiary. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that was 19% owned by the Company through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that was 49% owned by the Company and 51% indirectly owned by KLH through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. All material intercompany balances and transactions have been eliminated. The results of KLH are included in the Company’s consolidated financial statements beginning May 31, 2022.

KLH, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Fabco and Sonia Rykiel report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. Accordingly, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included in the financial statements for the quarter ended or ending closest to the Company’s fiscal quarter end. For example, with respect to the Company’s results for the nine-month period ended October 31, 2023, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included for the nine-month period ended September 30, 2023. For the year ended January 31, 2023, the results of KLH, which includes KLNA, are included for the period from May 31, 2022 through December 31, 2022. The results of the Company’s previous 49% ownership interest in KLNA and 19% ownership interest in KLH are included for the period from January 1, 2022 through May 30, 2022. The Company’s retail operations segment reports on a 52/53 week fiscal year. For fiscal 2024 and 2023, the three and nine-month periods for the retail operations segment were each 13-week and 39-week periods, respectively, and ended on October 28, 2023 and October 29, 2022, respectively.

The results for the three and nine months ended October 31, 2023 are not necessarily indicative of the results expected for the entire fiscal year, given the seasonal nature of the Company’s business. The accompanying financial statements included herein are unaudited. All adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim period presented have been reflected.

The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 filed with the Securities and Exchange Commission (the “SEC”).

Assets and liabilities of the Company’s foreign operations, where the functional currency is not the U.S. dollar (reporting currency), are translated from the foreign currency into U.S. dollars at period-end rates, while income and expenses are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive loss within stockholders’ equity.

7

NOTE 2 – ALLOWANCE FOR DOUBTFUL ACCOUNTS

The Company’s financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. The Company considers its trade receivables to consist of two portfolio segments: wholesale and retail trade receivables. Wholesale trade receivables result from credit the Company has extended to its wholesale customers based on pre-defined criteria and are generally due within 30 to 60 days. Retail trade receivables primarily relate to amounts due from third-party credit card processors for the settlement of debit and credit card transactions and are typically collected within 3 to 5 days.

The Company’s accounts receivable and allowance for doubtful accounts as of October 31, 2023, October 31, 2022 and January 31, 2023 were:

	October 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	880,827	$	806	$	881,633
Allowance for doubtful accounts		(18,349)		(63)		(18,412)
Accounts receivable, net	$	862,478	$	743	$	863,221
	October 31, 2022
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	898,383	$	1,010	$	899,393
Allowance for doubtful accounts		(18,192)		(66)		(18,258)
Accounts receivable, net	$	880,191	$	944	$	881,135
	January 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	692,033	$	1,227	$	693,260
Allowance for doubtful accounts		(18,237)		(60)		(18,297)
Accounts receivable, net	$	673,796	$	1,167	$	674,963

The allowance for doubtful accounts for wholesale trade receivables is estimated based on several factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (such as in the case of bankruptcy filings (including potential bankruptcy filings), extensive delay in payment or substantial downgrading by credit rating agencies), a specific reserve for bad debt is recorded against amounts due from that customer to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other wholesale customers, an allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the end of the reporting period for financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. The Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

The allowance for doubtful accounts for retail trade receivables is estimated at the credit card chargeback rate applied to the previous 90 days of credit card sales. In addition, the Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

8

The Company had the following activity in its allowance for credit losses:

	Wholesale		Retail		Total
	(In thousands)
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)
Provision for credit losses, net		(115)		(3)		(118)
Accounts written off as uncollectible		3		—		3
Balance as of October 31, 2023	$	(18,349)	$	(63)	$	(18,412)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(935)		18		(917)
Accounts written off as uncollectible		50		—		50
Balance as of October 31, 2022	$	(18,192)	$	(66)	$	(18,258)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(1,002)		24		(978)
Accounts written off as uncollectible		72		—		72
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)

NOTE 3 – INVENTORIES

Wholesale inventories, which comprise a significant portion of the Company’s inventory, are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Retail and Vilebrequin inventories are stated at the lower of cost (determined by the weighted average method) or net realizable value. Substantially all of the Company’s inventories consist of finished goods.

The inventory return asset, which consists of the amount of goods that are anticipated to be returned by customers, was $15.6 million, $17.1 million and $19.2 million as of October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Inventory held on consignment by the Company’s customers totaled $7.9 million, $6.5 million and $6.6 million at October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The Company reflects this inventory on its condensed consolidated balance sheets.

NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Generally Accepted Accounting Principles establish a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

● Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable.

● Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement.

9

The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments:

		Carrying Value						Fair Value
		October 31,		October 31,		January 31,		October 31,		October 31,		January 31,
Financial Instrument	Level	2023		2022		2023		2023		2022		2023
		(In thousands)
Secured Notes	1	$	400,000	$	400,000	$	400,000	$	396,340	$	379,000	$	380,000
Revolving credit facility	2		—		340,235		80,087		—		340,235		80,087
Note issued to LVMH	3		49,787		119,415		121,202		49,350		118,173		119,426
Unsecured loans	2		9,097		10,446		10,866		9,097		10,446		10,866
Overdraft facilities	2		1,872		3,664		3,657		1,872		3,664		3,657
Foreign credit facility	2		4,161		10,416		7,792		4,161		10,416		7,792

The Company’s debt instruments are recorded at their carrying values in its condensed consolidated balance sheets, which may differ from their respective fair values. The fair value of the Company’s secured notes is based on their current market price as of October 31, 2023. The carrying amount of the Company’s variable rate debt approximates the fair value, as interest rates change with market rates. Furthermore, the carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash, accounts receivable and accounts payable) also approximates fair value due to the short-term nature of these accounts.

The 2% note in the original principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKNY and Donna Karan was recorded on the balance sheet at a discount of $40.0 million in accordance with ASC 820 – Fair Value Measurements (“ASC 820”). For purposes of this fair value disclosure, the Company based its fair value estimate for the LVMH Note on the initial fair value as determined at the date of the acquisition of DKNY and Donna Karan and records the amortization using the effective interest method over the term of the LVMH Note. The Company repaid $75.0 million of the principal amount of the LVMH Note on June 1, 2023 and the remaining $50.0 million of such principal amount on December 1, 2023.

The fair value of the LVMH Note was considered a Level 3 valuation in the fair value hierarchy.

Non-Financial Assets and Liabilities

The Company’s non-financial assets that are measured at fair value on a nonrecurring basis include long-lived assets, which consist primarily of property and equipment and operating lease assets. The Company reviews these assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable. For assets that are not recoverable, an impairment loss is recognized equal to the difference between the carrying amount of the asset or asset group and its estimated fair value. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These fair value measurements are considered level 3 measurements in the fair value hierarchy. During fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance of these stores.

NOTE 5 – LEASES

The Company leases retail stores, warehouses, distribution centers, office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases are for a term of one to ten years.  Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years.  Several of the Company’s retail store leases include an option to terminate the lease based on failure to achieve a specified sales volume. The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor.

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Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease assets and liabilities as of October 31, 2023, October 31, 2022 and January 31, 2023 consist of the following:

Leases	Classification	October 31, 2023		October 31, 2022		January 31, 2023
		(In thousands)
Assets
Operating	Operating lease assets	$	221,474	$	216,663	$	239,665
Liabilities
Current operating	Current operating lease liabilities	$	55,897	$	50,645	$	52,917
Noncurrent operating	Noncurrent operating lease liabilities		183,522		185,171		204,974
Total lease liabilities		$	239,419	$	235,816	$	257,891

The Company recorded lease costs of $18.1 million and $55.1 million during the three and nine months ended October 31, 2023. The Company recorded lease costs of $17.1 million and $46.1 million during the three and nine months ended October 31, 2022. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $6.7 million and $18.1 million for the three and nine months ended October 31, 2023. The Company recorded variable lease costs and short-term lease costs of $6.1 million and $16.7 million for the three and nine months ended October 31, 2022. Short-term lease costs are immaterial.

As of October 31, 2023, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2028 and thereafter are as follows:

Year Ending January 31,	Amount
	(In thousands)
2024	$	17,459
2025		72,772
2026		59,813
2027		46,756
2028		37,635
After 2028		60,142
Total lease payments	$	294,577
Less: Interest		55,158
Present value of lease liabilities	$	239,419

As of October 31, 2023, there are no material leases that are legally binding but have not yet commenced.

As of October 31, 2023, the weighted average remaining lease term related to operating leases is 5.0 years. The weighted average discount rate related to operating leases is 8.5%.

Cash paid for amounts included in the measurement of operating lease liabilities was $53.2 million and $47.6 million during the nine months ended October 31, 2023 and 2022, respectively. Right-of-use assets obtained in exchange for lease obligations were $26.8 million and $96.7 million during the nine months ended October 31, 2023 and 2022, respectively.

NOTE 6 – KARL LAGERFELD ACQUISITION

On April 29, 2022, the Company entered into a share purchase agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire the remaining 81% interest in KLH that it did not already own, for an aggregate consideration of €193.4 million (approximately $207.6 million) in cash, after taking into account certain adjustments. The acquisition closed on May 31, 2022. The Company funded the purchase price from cash on hand.

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On May 31, 2022, the effective date of the acquisition, the Company’s previously held 19% investment in KLH and 49% investment in KLNA were remeasured at fair value using a market approach based on the purchase price of the acquisition and a discount for lack of control related to the Company’s previously held minority investment in KLH. As a result of this remeasurement, a non-cash gain of $27.1 million was recorded as of the effective date of the acquisition.

The addition of Karl Lagerfeld to the Company’s portfolio of owned brands advances several of its strategic initiatives, including increasing its direct ownership of brands and their licensing opportunities and further diversifying its global presence. This acquisition offers additional opportunities to expand the Company’s international growth by further developing its European-based brands, which also include Vilebrequin and Sonia Rykiel. The Company believes that Karl Lagerfeld’s existing digital channel presence provides an opportunity for the Company to enhance its omni-channel business and further accelerate its digital initiatives.

Purchase Price Consideration

The purchase price of $207.6 million, after taking into account certain adjustments, was paid from cash on hand. The purchase price has been revised to include adjustments in accordance with the Purchase Agreement.

The initial purchase price and the valuation of the prior minority ownership for the acquisition of KLH is as follows (in thousands):

Cash disbursed for the acquisition of KLH	$	168,592
Plus: cash acquired		38,499
Plus: aggregate adjustments to purchase price		516
Initial purchase price		207,607
Plus: fair value of prior minority ownership		102,858
Total consideration	$	310,465

Allocation of the Purchase Price Consideration

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:

(In thousands)
Cash and cash equivalents	$	38,499
Accounts receivable, net		28,449
Inventories		33,489
Prepaid income taxes		1,100
Prepaid expenses and other current assets		3,347
Property, plant and equipment, net		11,545
Operating lease assets		55,753
Goodwill		84,336
Trademarks		178,823
Customer relationships		4,294
Deferred income taxes		5,131
Other long-term assets		2,237
Total assets acquired	$	447,003
Notes payable		3,606
Accounts payable		9,175
Accrued expenses		15,261
Operating lease liabilities		58,942
Income taxes payable		2,099
Deferred income taxes		42,222
Other long-term liabilities		5,233
Total liabilities assumed	$	136,538
Total fair value of acquisition consideration	$	310,465

During the year ended January 31, 2023, the Company recorded adjustments to the fair values of assets acquired and liabilities assumed at the date of acquisition based on additional information obtained. The Company recorded an

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additional $36.9 million in both total assets and total liabilities, primarily related to goodwill, deferred tax assets and liabilities, operating lease assets, inventories, accounts receivable, net, accounts payable, customer relationships and operating lease liabilities.

The Company recognized goodwill of approximately $84.3 million in connection with the acquisition of KLH. The goodwill was assigned to the Company’s wholesale operations reporting unit. In fiscal 2023, as a result of the Company’s annual impairment test, the Company recorded a $347.2 million non-cash impairment charge to fully impair the carrying value of its goodwill. This charge included all of the $84.3 million of goodwill previously recognized in connection with the acquisition of KLH. The Company made an election under Internal Revenue Code Section 338(g) to amortize the total goodwill and intangible assets over a 15 year period for income tax purposes in the United States.

The fair values assigned to identifiable intangible assets acquired were based on assumptions and estimates made by management using unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. The fair values of the trademarks were determined using the relief from royalty method and the fair value of the customer relationships were determined using an income approach. The Company classifies these intangibles as Level 3 fair value measurements. Identifiable intangible assets acquired include the following (in thousands):

			Weighted Average
	Fair Value		Amortization Period
Trademarks	$	178,823		—
Customer relationships		4,294		8
	$	183,117		—

The Company recognized approximately $5.6 million of acquisition related costs that were expensed in fiscal 2023 and fiscal 2022. The fiscal 2023 and fiscal 2022 acquisition and integration costs were recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income for the fiscal years ended January 31, 2023 and 2022, respectively.

The fair value of assets acquired and liabilities assumed were finalized as of May 31, 2023.

NOTE 7 – NET INCOME PER COMMON SHARE

Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards outstanding during the period. Approximately 8,200 and 59,200 shares of common stock have been excluded from the diluted net income per share calculation for the three and nine months ended October 31, 2023. Approximately 310,600 and 258,600 shares of common stock have been excluded from the diluted net income per share calculation for the three and nine months ended October 31, 2022. All share-based payments outstanding that vest based on the achievement of performance conditions, and for which the respective performance conditions have not been achieved, have been excluded from the diluted per share calculation.

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(In thousands, except share and per share amounts)
Net income attributable to G-III Apparel Group, Ltd.	$	127,640	$	61,103	$	147,314	$	128,056
Basic net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Basic net income per share	$	2.79	$	1.29	$	3.21	$	2.68
Diluted net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Dilutive restricted stock unit awards and stock options		837		987		1,088		1,034
Diluted common shares		46,560		48,475		46,992		48,866
Diluted net income per share	$	2.74	$	1.26	$	3.13	$	2.62

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NOTE 8 – NOTES PAYABLE

Long-term debt consists of the following:

	October 31, 2023		October 31, 2022		January 31, 2023
	(In thousands)
Secured Notes	$	400,000	$	400,000	$	400,000
Revolving credit facility		—		340,235		80,087
LVMH Note		50,000		125,000		125,000
Unsecured loans		9,097		10,446		10,866
Overdraft facilities		1,872		3,664		3,657
Foreign credit facility		4,161		10,416		7,792
Subtotal		465,130		889,761		627,402
Less: Net debt issuance costs (1)		(2,972)		(4,671)		(4,246)
Debt discount		(213)		(5,585)		(3,798)
Current portion of long-term debt		(59,099)		(91,613)		(135,518)
Total	$	402,846	$	787,892	$	483,840

(1) Does not include debt issuance costs, net of amortization, totaling $2.8 million, $4.4 million and $4.0 million as of October 31, 2023, October 31, 2022 and January 31, 2023, respectively, related to the revolving credit facility. These debt issuance costs have been deferred and are classified in assets in the accompanying condensed consolidated balance sheets in accordance with ASC 835.

Senior Secured Notes

In August 2020, the Company completed a private debt offering of $400 million aggregate principal amount of its 7.875% Senior Secured Notes due August 2025 (the “Notes”). The terms of the Notes are governed by an indenture (the “Indenture”), among the Company, the guarantors party thereto and U.S. Bank, National Association, as trustee and collateral agent (the “Collateral Agent”). The net proceeds of the Notes were used (i) to repay the $300 million that was outstanding under the Company’s prior term loan facility due 2022 (the “Term Loan”), (ii) to pay related fees and expenses and (iii) for general corporate purposes.

The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year.

The Notes are unconditionally guaranteed on a senior-priority secured basis by the Company’s current and future wholly-owned domestic subsidiaries that guarantee any of the Company’s credit facilities, including the Company’s ABL facility (the “ABL Facility”) pursuant to the ABL Credit Agreement, or certain future capital markets indebtedness of the Company or the guarantors.

The Notes and the related guarantees are secured by (i) first priority liens on the Company’s Cash Flow Priority Collateral (as defined in the Indenture), and (ii) a second-priority lien on the Company’s ABL Priority Collateral (as defined in the Indenture), in each case subject to permitted liens described in the Indenture.

In connection with the issuance of the Notes and execution of the Indenture, the Company and the Guarantors entered into a pledge and security agreement (the “Pledge and Security Agreement”), among the Company, the Guarantors and the Collateral Agent.

The Notes are subject to the terms of the intercreditor agreement which governs the relative rights of the secured parties in respect of the ABL Facility and the Notes (the “Intercreditor Agreement”). The Intercreditor Agreement restricts the actions permitted to be taken by the Collateral Agent with respect to the Collateral on behalf of the holders of the Notes.

The Company may redeem some or all of the Notes at any time and from time to time at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

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If the Company experiences a Change of Control (as defined in the Indenture), the Company is required to offer to repurchase the Notes at 101% of the principal amount of such Notes plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

The Indenture contains covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other restricted payments, make certain investments, incur restrictions on the ability of the Company’s restricted subsidiaries that are not guarantors to pay dividends or make certain other payments, create or incur certain liens, sell assets and subsidiary stock, impair the security interests, transfer all or substantially all of the Company’s assets or enter into merger or consolidation transactions, and enter into transactions with affiliates. The Indenture provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest, breach of other agreements in the Indenture, failure to pay certain other indebtedness, failure of certain guarantees to be enforceable, failure to perfect certain collateral securing the Notes, failure to pay certain final judgments, and certain events of bankruptcy or insolvency.

The Company incurred debt issuance costs totaling $8.5 million related to the Notes. In accordance with ASC 835, the debt issuance costs have been deferred and are presented as a contra-liability, offsetting the outstanding balance of the Notes, and are amortized over the remaining life of the Notes.

Second Amended and Restated ABL Credit Agreement

In August 2020, the Company’s subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, AM Retail Group, Inc. and The Donna Karan Company Store LLC (collectively, the “Borrowers”), entered into the second amended and restated credit agreement (the “ABL Credit Agreement”) with the Lenders named therein and with JPMorgan Chase Bank, N.A., as Administrative Agent. The ABL Credit Agreement is a five year senior secured credit facility that provides for borrowings in the aggregate principal amount of up to $650 million. The Company and certain of its subsidiaries (the “Guarantors”), are Loan Guarantors under the ABL Credit Agreement.

The ABL Credit Agreement refinanced, amended and restated the Amended Credit Agreement, dated as of December 1, 2016 (as amended, supplemented or otherwise modified from time to time prior to August 7, 2020, the “Prior Credit Agreement”). The Prior Credit Agreement provided for borrowings of up to $650 million. The ABL Credit Agreement extended the maturity date of this facility from December 2021 to August 2025.

Amounts available under the ABL Credit Agreement are subject to borrowing base formulas and overadvances as specified in the ABL Credit Agreement. Borrowings originally bore interest, at the Borrowers’ option, at LIBOR plus a margin of 1.75% to 2.25% or an alternate base rate margin of 0.75% to 1.25% (defined as the greatest of (i) the “prime rate” of JPMorgan Chase Bank, N.A. from time to time, (ii) the federal funds rate plus 0.5% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 1.00%, with the applicable margin determined based on Borrowers’ availability under the ABL Credit Agreement. In April 2023, the Company amended the ABL Credit Agreement to replace LIBOR with the Adjusted Term Secured Overnight Financing Rate (“SOFR”) as a successor rate. All other material terms and conditions of the ABL Credit Agreement were unchanged. Borrowings under the amended ABL Credit Agreement now bear interest, at the Borrower’s option, at the alternate base rate (defined as, for a given day, the greatest of (i) the “prime rate” in effect on such day, (ii) the NYFRB Rate (as defined in the amendment) in effect on such day plus 0.5% and (iii) the Adjusted Term SOFR (defined as an interest rate per annum equal to the Term SOFR for such interest period plus 0.10%) for a one-month interest period as published two business days prior to such day plus 1%) plus an applicable spread or the Adjusted Term SOFR Rate plus an applicable spread. The Company applied certain provisions and practical expedients of ASC 848 – Reference Rate Reform related to the transition from LIBOR to SOFR.

The ABL Credit Agreement is secured by specified assets of the Borrowers and the Guarantors. In addition to paying interest on any outstanding borrowings under the ABL Credit Agreement, the Company is required to pay a commitment fee to the lenders under the credit agreement with respect to the unutilized commitments. The commitment fee accrues at a tiered rate equal to 0.50% per annum on the average daily amount of the available commitments when the average usage is less than 50% of the total available commitments and decreases to 0.35% per annum on the average daily amount of the available commitments when the average usage is greater than or equal to 50% of the total available commitments.

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The revolving credit facility contains covenants that, among other things, restrict the Company’s ability to, subject to specified exceptions, incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires the Company to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months of the Company. As of October 31, 2023, the Company was in compliance with these covenants.

As of October 31, 2023, the Company had no borrowings outstanding under the ABL Credit Agreement. The ABL credit agreement also includes amounts available for letters of credit. As of October 31, 2023, there were outstanding trade and standby letters of credit amounting to $2.0 million and $2.9 million, respectively.

At the date of the refinancing of the Prior Credit Agreement, the Company had $3.3 million of unamortized debt issuance costs remaining from the Prior Credit Agreement. The Company extinguished and charged to interest expense $0.4 million of the prior debt issuance costs and incurred new debt issuance costs totaling $5.1 million related to the ABL Credit Agreement. The Company has recorded $8.0 million of debt issuance costs related to the ABL Credit Agreement. As permitted under ASC 835, the debt issuance costs have been deferred and are presented as an asset which is amortized ratably over the term of the ABL Credit Agreement.

LVMH Note

As a portion of the consideration for the acquisition of Donna Karan International (“DKI”), the Company issued to LVMH a junior lien secured promissory note in the principal amount of $125.0 million that bears interest at the rate of 2% per year. $75.0 million of the principal amount of the LVMH Note was repaid on June 1, 2023 and the remaining $50.0 million of such principal amount was paid on December 1, 2023. The LVMH Note is classified in current portion of notes payable in the Company’s condensed consolidated balance sheets as of October 31, 2023 and January 31, 2023. $75.0 million of the LVMH Note is classified in current portion of notes payable in the Company’s condensed consolidated balance sheet as of October 31, 2022.

ASC 820 requires the LVMH Note to be recorded at fair value at issuance. As a result, the Company recorded a $40.0 million debt discount upon issuance of the LVMH Note. This discount is being amortized as interest expense using the effective interest method over the term of the LVMH Note.

Unsecured Loans

Several of the Company’s foreign entities borrow funds under various unsecured loans of which a portion is to provide funding for operations in the normal course of business while other loans are European state backed loans as part of COVID-19 relief programs. In the aggregate, the Company is currently required to make quarterly installment payments of principal in the amount of €0.6 million under these unsecured loans. Interest on the outstanding principal amount of the unsecured loans accrues at a fixed rate equal to 0% to 5.0% per annum, payable on either a quarterly or monthly basis. As of October 31, 2023, the Company had an aggregate outstanding balance of €8.6 million ($9.1 million) under these unsecured loans.

Overdraft Facilities

During fiscal 2021, T.R.B International SA (“TRB”) entered into several overdraft facilities that allow for applicable bank accounts to be in a negative position up to a certain maximum overdraft. TRB entered into an uncommitted overdraft facility with HSBC Bank allowing for a maximum overdraft of €5 million. Interest on drawn balances accrues at a rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin of 1.75% per annum, payable quarterly. The facility may be cancelled at any time by TRB or HSBC Bank. As part of a COVID-19 relief program, TRB and its subsidiaries have also entered into several state backed overdraft facilities with UBS Bank in Switzerland for an aggregate of CHF 4.7 million at varying interest rates of 0% to 0.5%. As of October 31, 2023, TRB had an aggregate of €1.8 million ($1.9 million) drawn under these facilities.

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Foreign Credit Facility

KLH has a credit agreement with ABN AMRO Bank N.V. with a credit limit of €15.0 million which is secured by specified assets of KLH. Borrowings bear interest at the EURIBOR plus a margin of 1.7%. As of October 31, 2023, KLH had €3.9 million ($4.2 million) of borrowings outstanding under this credit facility.

NOTE 9 – REVENUE RECOGNITION

Disaggregation of Revenue

In accordance with ASC 606 – Revenue from Contracts with Customers, the Company discloses its revenues by segment. Each segment presents its own characteristics with respect to the timing of revenue recognition and the type of customer. In addition, disaggregating revenues using a segment basis is consistent with how the Company’s Chief Operating Decision Maker manages the Company. The Company has identified the wholesale operations segment and the retail operations segment as distinct sources of revenue.

Wholesale Operations Segment. Wholesale revenues include sales of products to retailers under owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital outlets. Wholesale revenues from sales of products are recognized when control transfers to the customer. The Company considers control to have been transferred when the Company has transferred physical possession of the product, the Company has a right to payment for the product, the customer has legal title to the product and the customer has the significant risks and rewards of the product. Wholesale revenues are adjusted by variable consideration arising from implicit or explicit obligations. Wholesale revenues also include revenues from license agreements related to the DKNY, Donna Karan, Karl Lagerfeld, G.H. Bass, Andrew Marc, Vilebrequin and Sonia Rykiel trademarks owned by the Company.

Retail Operations Segment. Retail store revenues are generated by direct sales to consumers through Company-operated stores and product sales through the Company’s digital channels for the DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather businesses. Retail stores primarily consist of DKNY and Karl Lagerfeld Paris retail stores, substantially all of which are operated as outlet stores. Retail operations segment revenues are recognized at the point of sale when the customer takes possession of the goods and tenders payment. Digital revenues primarily consist of sales to consumers through the Company’s digital platforms. Digital revenue is recognized when a customer takes possession of the goods. Retail sales are recorded net of applicable sales tax.

Contract Liabilities

The Company’s contract liabilities, which are recorded within accrued expenses in the accompanying condensed consolidated balance sheets, primarily consist of gift card liabilities and advance payments from licensees. In some of its retail concepts, the Company also offers a limited loyalty program where customers accumulate points redeemable for cash discount certificates that expire 90 days after issuance. Total contract liabilities were $3.3 million, $3.3 million and $5.1 million at October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The Company recognized $3.1 million in revenue for the three months ended October 31, 2023 related to contract liabilities that existed at July 31, 2023. The Company recognized $4.3 million in revenue for the nine months ended October 31, 2023 related to contract liabilities that existed at January 31, 2023. There were no contract assets recorded as of October 31, 2023, October 31, 2022 and January 31, 2023. Substantially all of the advance payments from licensees as of October 31, 2023 are expected to be recognized as revenue within the next twelve months.

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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 to retailers under owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital outlets. Wholesale revenues also include revenues from license agreements related to the DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, G.H. Bass, Andrew Marc and Sonia Rykiel trademarks owned by the Company. 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 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 and nine month periods indicated below:

	Three Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,054,303	$	32,711	$	(19,904)	$	1,067,110
Cost of goods sold		636,961		16,640		(19,904)		633,697
Gross profit		417,342		16,071		—		433,413
Selling, general and administrative expenses		213,263		23,045		—		236,308
Depreciation and amortization		5,475		1,120		—		6,595
Asset impairments and gain on lease terminations		222		—		—		222
Operating profit (loss)	$	198,382	$	(8,094)	$	—	$	190,288

	Three Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,069,574	$	28,762	$	(20,037)	$	1,078,299
Cost of goods sold		740,734		12,975		(20,037)		733,672
Gross profit		328,840		15,787		—		344,627
Selling, general and administrative expenses		216,916		22,977		—		239,893
Depreciation and amortization		6,224		1,046		—		7,270
Asset impairment, net of gain on lease terminations		250		—		—		250
Operating profit (loss)	$	105,450	$	(8,236)	$	—	$	97,214

	Nine Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,280,391	$	97,268	$	(44,199)	$	2,333,460
Cost of goods sold		1,369,315		48,478		(44,199)		1,373,594
Gross profit		911,076		48,790		—		959,866
Selling, general and administrative expenses		633,841		69,635		—		703,476
Depreciation and amortization		16,247		2,883		—		19,130
Asset impairment, net of gain on lease terminations		222		—		—		222
Operating profit (loss)	$	260,766	$	(23,728)	$	—	$	237,038

	Nine Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,338,435	$	87,758	$	(53,893)	$	2,372,300
Cost of goods sold		1,564,595		42,006		(53,893)		1,552,708
Gross profit		773,840		45,752		—		819,592
Selling, general and administrative expenses		548,411		67,940		—		616,351
Depreciation and amortization		17,304		2,717		—		20,021
Asset impairment, net of gain on lease terminations		250		(38)		—		212
Operating profit (loss)	$	207,875	$	(24,867)	$	—	$	183,008

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

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The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2023		October 31, 2022		October 31, 2023		October 31, 2022
	(In thousands)
Licensed brands	$	625,231	$	669,408	$	1,261,894	$	1,403,142
Proprietary brands		429,072		400,166		1,018,497		935,293
Wholesale net sales(1)	$	1,054,303	$	1,069,574	$	2,280,391	$	2,338,435
Licensed brands	$	—	$	—	$	—	$	—
Proprietary brands		32,711		28,762		97,268		87,758
Retail net sales	$	32,711	$	28,762	$	97,268	$	87,758

(1) As of May 31, 2022, the Company acquired the remaining interests in KLH (Karl Lagerfeld branded product) that it did not already own. Net sales of Karl Lagerfeld product were included in licensed brands net sales of the wholesale operations segment through May 31, 2022. Subsequent to May 31, 2022, net sales of Karl Lagerfeld product are included in proprietary brands net sales of the wholesale operations segment.

NOTE 11 – STOCKHOLDERS’ EQUITY

For the three months ended October 31, 2023, the Company issued no shares of common stock and utilized 4,354 shares of treasury stock in connection with the vesting of equity awards. For the three months ended October 31, 2022, the Company issued no shares of common stock and utilized 2,366 shares of treasury stock in connection with the vesting of equity awards. For the nine months ended October 31, 2023, the Company issued no shares of common stock and utilized 608,325 shares of treasury stock in connection with the vesting of equity awards. For the nine months ended October 31, 2022, the Company issued no shares of common stock and utilized 385,485 shares of treasury stock in connection with the vesting of equity awards.

NOTE 12 – CANADIAN CUSTOMS DUTY EXAMINATION

In accordance with a favorable ruling by the Canadian International Trade Tribunal, in fiscal 2023 and fiscal 2024, G-III Canada received refunds from the Canada Border Service Agency (“CBSA”) in the aggregate amount of CAD$2.7 million ($2.0 million), including interest and net of a dutiable design assist, for amounts paid by G-III Canada to the CBSA between February 1, 2014 and January 31, 2018. G-III Canada has filed adjustment requests with the CBSA for the period from February 1, 2018 to January 31, 2022 to amend declared dutiable values. These amendments are expected to result in an additional refund of duty and interest, net of refunds already received, from the CBSA of approximately CAD$12.4 million ($8.9 million) plus related interest. These amounts are recorded within other assets, net in the condensed consolidated balance sheets.

NOTE 13 – RECENT ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

There was no accounting guidance adopted during the three months ended October 31, 2023.

Issued Accounting Guidance Being Evaluated for Adoption

The Company has reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.

NOTE 14 – RELATED PARTY TRANSACTION

In June 2023, the Company entered into a stock sale and purchase agreement (the “Agreement”) with Sammy Aaron, the Company’s Vice Chairman and President and a Director of the Company. Pursuant to the Agreement, the Company purchased from Mr. Aaron 208,943 shares of its common stock for $4.1 million at a price equal to the closing price of the Company’s shares on the date of the Agreement.

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NOTE 15 – EMPLOYMENT AGREEMENTS

On August 9, 2023, the Company entered into a new employment agreement with Morris Goldfarb, its Chairman and Chief Executive Officer. The employment agreement included provisions, among others, that (i) changed the structure of Mr. Goldfarb’s annual cash incentive that are designed to align with current market practice and reduce the size of the annual cash incentive, (ii) changed the mix of annual cash compensation and annual equity grants in a manner that increases the weighting of equity compared to cash and encourages long-term performance and shareholder value creation, and (iii) in recognition of the significant reduction in the annual cash incentive agreed to by Mr. Goldfarb, provide for a grant of 700,000 performance share units (PSUs) that may be earned over three years if certain stock price and relative total shareholder return targets are achieved.

On August 29, 2023, the Company entered into a new employment agreement with Sammy Aaron, its Vice Chairman and President. The employment agreement included provisions, among others, that (i) changed to the structure of Mr. Aaron’s annual cash incentive that are designed to align with current market practice and to reduce the size of the annual cash incentive, (ii) changed the mix of annual cash compensation and annual equity grants in a manner that increases the weighting of equity compared to cash and encourages long-term performance and shareholder value creation and (iii) in recognition of the significant reduction in the annual cash incentive agreed to by Mr. Aaron, provides for a special bonus of $2,000,000 that was paid shortly after the new employment agreement was entered into and a retention bonus of $1,000,000 payable if, as of January 31, 2025, the Company has not terminated the employment agreement for “cause” or he has not terminated the employment agreement without “cause” or without “Good Reason” (each of the terms as defined in the employment agreement).

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Item 2.         Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Unless the context otherwise requires, “G-III,” “us,” “we” and “our” refer to G-III Apparel Group, Ltd. and its subsidiaries. References to fiscal years refer to the year ended or ending on January 31 of that year. For example, our fiscal year ending January 31, 2024 is referred to as “fiscal 2024.”

KLH, Vilebrequin, Fabco and Sonia Rykiel report results on a calendar year basis rather than on the January 31 fiscal year basis used by G-III. Accordingly, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included in the financial statements for the quarter ended or ending closest to G-III’s fiscal quarter end. For example, with respect to our results for the nine-month period ended October 31, 2023, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included for the nine-month period ended September 30, 2023. We accounted for our investment in each of KLH and KLNA using the equity method of accounting through May 30, 2022. Effective May 31, 2022, KLH is accounted for as our consolidated wholly-owned subsidiary and KLNA is an indirect wholly-owned subsidiary of ours. Our retail operations segment uses a 52/53-week fiscal year. For fiscal 2024 and 2023, the three and nine-month periods for the retail operations segment were each 13-week and 39-week periods, respectively, and ended on October 28, 2023 and October 29, 2022, respectively.

Various statements contained in this Form 10-Q, in future filings by us with the SEC, in our press releases and in oral statements made from time to time by us or on our behalf constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and are indicated by words or phrases such as “anticipate,” “estimate,” “expect,” “will,” “project,” “we believe,” “is or remains optimistic,” “currently envisions,” “forecasts,” “goal” and similar words or phrases and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. Forward-looking statements also include representations of our expectations or beliefs concerning future events that involve risks and uncertainties, including, but not limited to, the following:

● the failure to maintain our material license agreements could cause us to lose significant revenues and have a material adverse effect on our results of operations;

● unless we are able to increase the sales of our other products, acquire new businesses and/or enter into other license agreements covering different products, the limited extension period of the amended Calvin Klein and Tommy Hilfiger license agreements could cause a significant decrease in our net sales and have a material adverse effect on our results of operations;

● any adverse change in our relationship with PVH Corp. and its Calvin Klein or Tommy Hilfiger brands would have a material adverse effect on our results of operations;

● our dependence on the strategies and reputation of our licensors;

● risks relating to our wholesale operations including, among others, maintaining the image of our proprietary brands, business practices of our customers that could adversely affect us and retail customer concentration;

● risks relating to our retail operations segment;

● our ability to achieve operating enhancements and cost reductions from our retail operations;

● dependence on existing management;

● our ability to make strategic acquisitions and possible disruptions from acquisitions, including our ownership of the entire Karl Lagerfeld business;

● need for additional financing;

● seasonal nature of our business and effect of unseasonable or extreme weather on our business;

● possible adverse effects from disruptions to the worldwide supply chain;

● price, availability and quality of materials used in our products;

● the need to protect our trademarks and other intellectual property;

● risk that our licensees may not generate expected sales or maintain the value of our brands;

● the impact of the current economic and credit environment on us, our customers, suppliers and vendors, including without limitation, the effects of inflationary cost pressures and higher interest rates;

● effects of war, acts of terrorism, natural disasters or public health crises could adversely affect our business and results of operations, including the wars in Ukraine and the Middle East;

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● the global health crisis caused by COVID-19 has had, and the current and uncertain future outlook with respect to COVID-19 and its variants will likely continue to have, adverse effects on our business, financial condition and results of operations;

● our dependence on foreign manufacturers;

● risks of expansion into foreign markets, conducting business internationally and exposures to foreign currencies;

● risks related to the implementation of the national security law in Hong Kong;

● the need to successfully upgrade, maintain and secure our information systems;

● increased exposure to consumer privacy, cybersecurity and fraud concerns, including as a result of the remote working environment;

● possible adverse effects of data security or privacy breaches;

● the impact on our business of the imposition of tariffs by the United States government and the escalation of trade tensions between countries;

● changes in tax legislation or exposure to additional tax liabilities could impact our business;

● the effect of regulations applicable to us as a U.S. public company;

● focus on corporate responsibility issues by stakeholders;

● potential effect on the price of our stock if actual results are worse than financial forecasts or if we are unable to provide financial forecasts;

● fluctuations in the price of our common stock;

● impairment of our trademarks or other intangibles may require us to record charges against earnings as was the case in the fourth quarter of fiscal 2023; and

● risks related to our indebtedness.

Any forward-looking statements are based largely on our expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control. A detailed discussion of significant risk factors that have the potential to cause our actual results to differ materially from our expectations is described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended January 31, 2023. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Overview

G-III designs, sources and markets an extensive range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. G-III has a substantial portfolio of more than 30 licensed and proprietary brands, anchored by our global power brands: DKNY, Donna Karan, Karl Lagerfeld, Calvin Klein and Tommy Hilfiger. We are not only licensees, but also brand owners, and we distribute our products through multiple channels.

Our own proprietary brands include DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, Marc New York, Wilsons Leather and Sonia Rykiel. We have an extensive portfolio of well-known licensed brands, including Calvin Klein, Tommy Hilfiger, Nautica, Halston, Levi’s, Guess?, Kenneth Cole, Cole Haan, Vince Camuto, Dockers and Champion. Through our team sports business, we have licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and over 150 U.S. colleges and universities. We also source and sell products to major retailers under their private retail labels.

Our products are sold through a cross section of leading retailers such as Macy’s, including its Bloomingdale’s division, Dillard’s, Hudson’s Bay Company, including its Saks Fifth Avenue division, Nordstrom, Kohl’s, TJX Companies, Ross Stores, Burlington and Costco. We also sell our products using digital channels through retail partners such as macys.com, nordstrom.com and dillards.com, each of which has a substantial online business. In addition, we sell to leading online retail partners such as Amazon, Fanatics, Zalando and Zappos.

We also distribute apparel and other products directly to consumers through our own DKNY, Karl Lagerfeld, Karl Lagerfeld Paris and Vilebrequin retail stores, as well as through our digital channels for the DKNY, Donna Karan, Karl Lagerfeld, Karl Lagerfeld Paris, Vilebrequin, G.H. Bass, Wilsons Leather and Sonia Rykiel businesses.

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We operate in fashion markets that are intensely competitive. Our ability to continuously evaluate and respond to changing consumer demands and tastes, across multiple market segments, distribution channels and geographic areas is critical to our success. Although our portfolio of brands is aimed at diversifying our risks in this regard, misjudging shifts in consumer preferences could have a negative effect on our business. Our success in the future will depend on our ability to design products that are accepted in the marketplace, source the manufacture of our products on a competitive basis, and continue to diversify our product portfolio and the markets we serve.

We believe that consumers prefer to buy brands they know, and we have continually sought to increase the portfolio of name brands we can offer through different tiers of retail distribution, for a wide array of products at a variety of price points. We have increased the portfolio of brands we offer through licenses, acquisitions and joint ventures. It is our objective to continue to expand our product offerings and we are continually discussing new licensing opportunities with brand owners and seeking to acquire established brands.

Recent Developments

Repositioning and Expansion of Donna Karan

We acquired the DKNY and Donna Karan brands, two of the most iconic American fashion brands, in December 2016. We initially repositioned and relaunched DKNY and we have successfully grown the brand. We are now focused on the repositioning and expansion of the Donna Karan brand for Spring 2024. The new Donna Karan will be a modern system of dressing created to appeal to a woman’s senses on every level, addressing her full lifestyle needs. Our Donna Karan product is expected to be distributed in North America and internationally through our diversified distribution network, including better department stores, digital channels and our own Donna Karan website. Donna Karan is widely considered to be a top fashion brand and is recognized as one of the most famous designer names in American fashion. We believe that the strength of the Donna Karan brand, along with our success with the DKNY brand, demonstrates the potential for our new Donna Karan products.

License Agreement for Nautica Brand

In March 2023, we entered into a long-term license with Authentic Brands Group for the Nautica brand in North America.

We plan to produce products under the Nautica brand across a number of categories starting with a full women’s jeanswear collection and then expanding in a phased approach into additional categories including sportswear, suit separates and dresses. The new five-year license agreement, effective beginning in January 2024, includes three extensions, for five years each. First deliveries are expected to begin in January 2024. The product is expected to be distributed in North America through our diversified distribution network, including better department stores, digital channels and Nautica’s stores and website, as well as in franchised stores globally. We believe that significant opportunity exists in the better women’s apparel space in categories where we have strong expertise. The Nautica brand joins our portfolio of some of the largest American brands in the world.

License Agreement for Halston Brand

In May 2023, we entered into a global twenty-five year master license with Xcel Brands, Inc. to design and produce all categories of men’s and women’s product for the Halston brand.

The agreement provides for an initial term of five years, followed by a twenty-year period, as well as a purchase option at the end of the twenty-five year term. First deliveries of Halston product are expected to begin in the fall of 2024. Our Halston product is expected to be distributed globally through our diversified distribution network, including better department stores and digital channels. We believe that significant opportunity exists in the better women’s apparel space where G-III has significant expertise. The Halston brand joins G-III’s portfolio of some of the largest American brands in the world.

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License Agreement for Champion Brand

In September 2023, we entered into a license with HanesBrands Inc. to design and produce a men’s and women’s outerwear collection for their Champion brand in North America.

The agreement provides for an initial term of five years, effective beginning in January 2024, with a five year renewal option based on achieving sales targets. First deliveries of Champion product are expected for the Fall 2024 season. Our Champion product is expected to be distributed in North America through our diversified distribution network, including better department stores and digital channels. Our collections will feature quality heritage pieces that complement and enhance Champion’s principles. We believe this license aligns with G-III’s core competencies in outerwear and will fit seamlessly into our well-developed outerwear divisions.

Segments

We report based on two segments: wholesale operations and retail operations.

Our wholesale operations segment includes sales of products to retailers under owned, licensed and private label brands, as well as sales related to the Karl Lagerfeld and Vilebrequin businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by our retail stores and digital outlets. Wholesale revenues also include revenues from license agreements related to our owned trademarks including DKNY, Donna Karan, Karl Lagerfeld, G.H. Bass, Andrew Marc, Vilebrequin and Sonia Rykiel.

Our retail operations segment consists primarily of direct sales to consumers through our company-operated stores and product sales through our digital channels for the DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather businesses. Our company-operated stores primarily consist of DKNY and Karl Lagerfeld Paris retail stores, substantially all of which are operated as outlet stores.

Trends Affecting Our Business

Industry Trends

Significant trends that affect the apparel industry include retail chains closing unprofitable stores, an increased focus by retail chains and others on expanding digital sales and providing convenience-driven fulfillment options, the continued consolidation of retail chains and the desire on the part of retailers to consolidate vendors supplying them.

In addition, we sell our products online through retail partners such as macys.com, nordstrom.com and dillards.com, each of which has a substantial online business. As sales of apparel through digital channels continue to increase, we are developing additional digital marketing initiatives on both our web sites and third party web sites and through social media. We are investing in digital personnel, marketing, logistics, planning, distribution and other strategic opportunities to expand our digital footprint. Our digital business consists of our own web platforms at www.dkny.com, www.donnakaran.com, www.ghbass.com, www.vilebrequin.com, www.wilsonsleather.com, www.soniarykiel.com, www.karllagerfeldparis.com and www.karl.com. In addition, we sell to leading online retail partners such as Amazon, Fanatics, Zalando and Zappos and have made minority investments in two e-commerce retailers.

A number of retailers have experienced financial difficulties, which in some cases have resulted in bankruptcies, liquidations and/or store closings. The financial difficulties of a retail customer of ours could result in reduced business with that customer. We may also assume higher credit risk relating to receivables of a retail customer experiencing financial difficulty that could result in higher reserves for doubtful accounts or increased write-offs of accounts receivable. We attempt to mitigate credit risk from our customers by closely monitoring accounts receivable balances and shipping levels, as well as the ongoing financial performance and credit standing of customers.

Retailers are seeking to differentiate their offerings by devoting more resources to the development of exclusive products, whether by focusing on their own private label products or on products produced exclusively for a retailer by a national brand manufacturer. Exclusive brands are only made available to a specific retailer. As a result, customers loyal to their brands can only find them in the stores of that retailer.

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We have attempted to respond to general trends in our industry by continuing to focus on selling products with recognized brand equity, by attention to design, quality and value and by improving our sourcing capabilities. We have also responded with the strategic acquisitions made by us, such as our purchase of the interests not previously owned by us that resulted in Karl Lagerfeld becoming our wholly-owned subsidiary, and new license agreements entered into by us, such as our recent license agreements for the Nautica, Halston and Champion brands, that added to our portfolio of licensed and proprietary brands and helped diversify our business by adding new product lines and expanding distribution channels. We believe that our broad distribution capabilities help us to respond to the various shifts by consumers between distribution channels and that our operational capabilities will enable us to continue to be a vendor of choice for our retail partners.

Tax Laws and Regulations

On December 12, 2022, the Council of the European Union (“EU”) announced that EU member states reached an agreement to implement the minimum tax component of the Organization for Economic Co-operation and Development’s international tax reform initiative, known as Pillar Two.  The Pillar Two Model Rules provide for a global minimum tax of 15% for multinational enterprise groups, and is expected to be effective for our fiscal year ending January 31, 2025. We are in the process of evaluating the impact of Pillar Two, if any, on our tax rate and financial results. We will continue to monitor the developing laws as further information becomes available.

Inflation and Interest Rates

Inflationary pressures have impacted the entire economy, including our industry. Recent high rates of inflation, including increased fuel and food prices, have led to a softening of consumer demand and increased promotional activity in the apparel categories we sell and may lead to further challenges to increase our sales. Ongoing inflation may also negatively impact our cost structure and labor costs in the future.

The Federal Reserve raised interest rates multiple times in fiscal 2023, as well as thus far in fiscal 2024, in response to concerns about inflation and may continue to do so in the future. Higher interest rates increase the cost of our borrowing under our revolving credit facility, may increase economic uncertainty and may negatively affect consumer spending. Volatility in interest rates may adversely affect our business or our customers. If the equity and credit markets deteriorate, it may make any necessary debt or equity financing more difficult to obtain in a timely manner or on favorable terms, or at all.

Foreign currency fluctuation

Our consolidated operations are impacted by the relationships between our reporting currency, the U.S. Dollar, and those of our non-United States subsidiaries whose functional/local currency is other than the U.S. Dollar, primarily the Euro. Volatility in the global foreign currency exchange rates may have a negative impact on the reported results of certain of our non-United States subsidiaries in the future, when translated to the U.S. Dollar.

Supply Chain

In fiscal 2022 and 2023, there were numerous factors disrupting the shipping industry that negatively affected transit times from our overseas suppliers, as well as our ability to ensure that we were able to import our product in a manner that allows for timely delivery to our customers.

More recently, shipping costs and transit times have returned to levels comparable to, and in some cases lower than, pre-pandemic time periods. We continue to monitor the transportation market for circumstances that may cause delays and negatively impact our ability to deliver product to our retail partners in a timely manner.

As a result of supply chain disruptions, in fiscal 2023, we accelerated production schedules to allow for more lead time and to accommodate the anticipated extended transit times from our overseas suppliers in an effort to import our product in a manner that allows for timely delivery to our customers. As a result, our inventory levels were higher than usual in fiscal 2023.

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Elevated inventory levels and disruptions in the shipping industry contributed to us incurring significant demurrage charges in fiscal 2023. We implemented measures to ensure that we did not incur these charges in our current fiscal year, including reducing product buys to account for current inventory levels and adjusting our production schedules to receive inventory closer to the need for delivery. We experienced inventory levels that were higher than normal through the first half of fiscal 2024. As a result, our warehouse operations were less efficient and we continued to incur additional labor and storage costs related to our inventory in the first half of fiscal 2024. Our inventory levels returned to a more normalized level in the third quarter of fiscal 2024 and we expect this to continue into the fourth quarter of fiscal 2024. Our warehouse capacity has been, and we expect it to continue to be, sufficient for our needs which is expected to bring these costs in line with historical norms. As a result, our warehousing and distribution costs have been reduced for the third quarter of fiscal 2024 and we expect reduced costs to continue through the fourth quarter of fiscal 2024.

We have secured all required space with two of our long-term steamship carrier partners, including the space needed for our peak period and beyond. We continue to monitor supply chain challenges, most recently the developing situation with the Panama Canal, and will divert or adjust routes accordingly to ensure delivery of our product.

Impact of COVID-19

The continued impact of COVID-19 on our business operations remains uncertain and cannot be predicted. The extent to which COVID-19 impacts our results will depend on continued developments around the world in the public and private responses to COVID-19. New information may emerge concerning the severity and the spread of variants of the COVID-19 virus in locations that are important to our business. Actions taken to contain COVID-19 or its variants, or treat their impact, may change or become more restrictive if additional waves of infections occur. We continue to monitor the latest developments regarding the impacts of COVID-19 and have incorporated certain assumptions regarding the duration, severity and global macroeconomic impact of the pandemic into our financial outlook.

International Conflicts

We are monitoring the direct and indirect impacts from the military conflicts between Russia and Ukraine and Israel and Hamas. These international conflicts and the continued threat of terrorism, heightened security measures and military action in response to acts of terrorism or civil unrest have disrupted commerce and intensified concerns regarding the United States and world economies. Our sales in Russia, Ukraine and Israel are not material to our financial results. However, the imposition of additional sanctions by the United States and/or foreign governments, as well as the sanctions already in place, could lead to restrictions related to sales and our supply chain for which the financial impact is uncertain. In addition, the continuation or escalation of these international conflicts, including the potential for additional countries to declare war against each other, may lead to further, broader unfavorable macroeconomic conditions, including unfavorable foreign exchange rates, increases in fuel prices, food shortages, a weakening of the worldwide economy, lower consumer demand and volatility in financial markets. The possible effects of these international conflicts could have a material adverse effect on our business and our results of operations.

Results of Operations

Three months ended October 31, 2023 compared to three months ended October 31, 2022

Net sales for the three months ended October 31, 2023 decreased to $1.07 billion from $1.08 billion in the same period last year. Net sales of our segments are reported before intercompany eliminations.

Net sales of our wholesale operations segment decreased to $1.05 billion for the three months ended October 31, 2023 from $1.07 billion in the comparable period last year. This decrease was primarily the result of a decrease in net sales of Calvin Klein and Tommy Hilfiger licensed products. This decrease was partially offset by an increase in net sales of our DKNY and Karl Lagerfeld products. The increase in sales of DKNY products was primarily related to handbags and women’s outerwear.

Net sales of our retail operations segment increased to $32.7 million for the three months ended October 31, 2023 from $28.8 million in the same period last year. The number of retail stores operated by us increased from 60 at October 31,

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2022 to 62 at October 31, 2023. The increase in sales in our retail operations segment was primarily the result of increased sales at our Karl Lagerfeld Paris stores.

Gross profit was $433.4 million, or 40.6% of net sales, for the three months ended October 31, 2023, compared to $344.6 million, or 32.0% of net sales, in the same period last year. The gross profit percentage in our wholesale operations segment was 39.6% in the three months ended October 31, 2023 compared to 30.7% in the same period last year. The gross profit percentage in the prior year period was negatively impacted by $26.7 million in demurrage charges incurred due to our inability to pick up freight from port terminals in a timely manner. The gross profit percentage in the current year period was positively impacted by lower freight costs compared to the same period last year. The gross profit percentage in our retail operations segment was 49.1% for the three months ended October 31, 2023 compared to 54.9% for the same period last year. The gross profit percentage in the current year period was negatively impacted by an increase in promotional activity.  

Selling, general and administrative expenses decreased to $236.3 million in the three months ended October 31, 2023 from $239.9 million in the same period last year. The decrease in expenses was primarily due to a decrease of $9.0 million in third-party warehouse and facility expenses primarily related to lower inventory levels during the period. This decrease was partially offset by an increase of $5.1 million in compensation expense, primarily as a result of increases in salaries.

Depreciation and amortization was $6.6 million for the three months ended October 31, 2023 compared to $7.3 million in the same period last year. This decrease primarily results from lower depreciation and amortization as a result of a reduction in capital expenditures in recent years.

Other loss was $3.1 million in the three months ended October 31, 2023 compared to $2.8 million in the same period last year. We recorded $2.7 million in losses from unconsolidated affiliates during the three months ended October 31, 2023 compared to $0.2 million in losses from unconsolidated affiliates in the same period last year. Other loss in the current period also consisted of $0.4 million of foreign currency losses compared to $4.0 million of foreign currency losses during the same period last year.

Interest and financing charges, net, for the three months ended October 31, 2023 were $11.0 million compared to $16.1 million in the same period last year. The decrease in interest and financing charges was primarily due to a decrease of $2.5 million in interest charges as a result of lower average borrowings under our revolving credit facility in the current year period and a decrease of $1.1 million in interest charges related to the LVMH Note as a result of the repayment of $75 million in principal of this Note on June 1, 2023.

Income tax expense was $48.8 million for the three months ended October 31, 2023 compared to $17.5 million for the same period last year. Our effective tax rate increased to 27.7% in the current year’s quarter from 22.4% in last year’s comparable quarter. The lower effective tax rate in the prior year period was due the exclusion of the gain recognized as a result of the remeasurement of the fair value of our previously held 19% investment in KLH and 49% interest in KLNA from taxable income.

Nine months ended October 31, 2023 compared to nine months ended October 31, 2022

Net sales for the nine months ended October 31, 2023 decreased to $2.33 billion from $2.37 billion in the same period last year. Net sales of our segments are reported before intercompany eliminations.

Net sales of our wholesale operations segment decreased to $2.28 billion for the nine months ended October 31, 2023 from $2.34 billion in the comparable period last year. This decrease was primarily the result of a decrease in net sales of Calvin Klein and Tommy Hilfiger licensed products. This decrease was partially offset by the addition of $110.2 million in net sales due to the inclusion of the results of the acquired Karl Lagerfeld business for all of the current period compared to only four months in the same period last year.

Net sales of our retail operations segment increased to $97.3 million for the nine months ended October 31, 2023 from $87.8 million in the same period last year. The number of retail stores operated by us increased from 60 at October 31, 2022 to 62 at October 31, 2023. The increase in sales in our retail operations segment was primarily the result of increased sales at our Karl Lagerfeld Paris stores.

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Gross profit was $959.9 million, or 41.1% of net sales, for the nine months ended October 31, 2023, compared to $819.6 million, or 34.5% of net sales, in the same period last year. The gross profit percentage in our wholesale operations segment was 40.0% in the nine months ended October 31, 2023 compared to 33.0% in the same period last year. The gross profit percentage in the prior year period was negatively impacted by $30.8 million in demurrage charges incurred due to our inability to pick up freight from port terminals in a timely manner. The gross profit percentage in the current year period was positively impacted by lower freight costs and slightly higher prices to our customers compared to the same period last year. The gross profit percentage in our retail operations segment was 50.2% for the nine months ended October 31, 2023 compared to 52.1% for the same period last year. The gross profit percentage in the current year period was negatively impacted by an increase in promotional activity.  

Selling, general and administrative expenses increased to $703.5 million in the nine months ended October 31, 2023 from $616.4 million in the same period last year. We recognized an additional $72.8 million of expenses due to the inclusion of the results of KLH for the current period ended October 31, 2023 as compared to only four months in the same period last year. The remainder of the increase in expenses was primarily due to an increase of $16.7 million in compensation expense, primarily from an increase in salaries and bonus expense accruals. This increase was partially offset by reduced royalty advertising expenses which decreased due to lower net sales of licensed product.

Depreciation and amortization was $19.1 million for the nine months ended October 31, 2023 compared to $20.0 million in the same period last year. This decrease primarily results from lower depreciation and amortization as a result of a reduction in capital expenditures in recent years, partially offset by an increase of $2.4 million of depreciation and amortization expense due to the inclusion of the results of KLH for all of the current period compared to four months in the same period last year.

Other loss was $2.0 million in the nine months ended October 31, 2023 compared to other income of $24.8 million for the same period last year. Other income in the prior year period consisted of a gain of $30.9 million during the nine months ended October 31, 2022 as a result of the remeasurement of our previously held 19% investment in KLH and 49% investment in KLNA as of the effective date of the acquisition by us of the interests in KLH that we did not previously own. Other loss in the current period consisted of $0.7 million of foreign currency income during the nine months ended October 31, 2023 compared to $9.4 million of foreign currency losses during the same period last year. Additionally, we recorded $3.7 million in losses from unconsolidated affiliates during the nine months ended October 31, 2023 compared to $0.8 million in income from unconsolidated affiliates in the same period last year.

Interest and financing charges, net, for the nine months ended October 31, 2023 were $32.7 million compared to $40.8 million in the same period last year. The decrease in interest and financing charges was primarily due to a $3.0 million increase in investment income from having a larger cash position in the current year compared to the prior year and a decrease of $2.2 million in interest charges due to lower average borrowings under our revolving credit facility in the current year period. In addition, there was a decrease of $1.6 million in interest charges related to the LVMH Note as a result of the repayment of $75 million in principal of this Note on June 1, 2023.

Income tax expense was $55.7 million for the nine months ended October 31, 2023 compared to $39.5 million for the same period last year. Our effective tax rate increased to 27.5% in the current year’s period from 23.6% in last year’s comparable period. The lower effective tax rate in the prior year period was due to the exclusion of the gain recognized as a result of the remeasurement of the fair value of our previously held 19% investment in KLH and 49% interest in KLNA from taxable income.

Liquidity and Capital Resources

Cash Availability

We rely on our cash flows generated from operations, cash and cash equivalents and the borrowing capacity under our revolving credit facility to meet the cash requirements of our business. The cash requirements of our business are primarily related to the seasonal buildup in inventories, compensation paid to employees, payments to vendors in the normal course of business, capital expenditures, interest payments on debt obligations and income tax payments. A principal payment of $75 million was made on June 1, 2023 with respect to the LVMH Note. The remaining principal amount of $50 million under the LVMH Note was paid on December 1, 2023. We have also used cash to repurchase our shares.

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As of October 31, 2023, we had cash and cash equivalents of $197.4 million and availability under our revolving credit facility of approximately $645 million. As of October 31, 2023, we were in compliance with all covenants under our senior secured notes and revolving credit facility.

Senior Secured Notes

In August 2020, we completed a private debt offering of $400 million aggregate principal amount of our 7.875% Senior Secured Notes due August 2025 (the “Notes). The terms of the Notes are governed by an indenture, dated as of August 7, 2020 (the “Indenture”), among us, the guarantors party thereto and U.S. Bank, National Association, as trustee and collateral agent (the “Collateral Agent”). The net proceeds of the Notes were used (i) to repay the $300 million that was outstanding under our prior term loan facility due 2022 (the “Term Loan”), (ii) to pay related fees and expenses and (iii) for general corporate purposes.

The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year.

The Notes are unconditionally guaranteed on a senior-priority secured basis by our current and future wholly-owned domestic subsidiaries that guarantee any of our credit facilities, including our ABL facility (the “ABL Facility”) pursuant to the ABL Credit Agreement, or certain future capital markets indebtedness of ours or the guarantors.

The Notes and the related guarantees are secured by (i) first priority liens on our Cash Flow Priority Collateral (as defined in the Indenture), and (ii) a second-priority lien on our ABL Priority Collateral (as defined in the Indenture), in each case subject to permitted liens described in the Indenture.

In connection with the issuance of the Notes and execution of the Indenture, we and the Guarantors entered into a pledge and security agreement (the “Pledge and Security Agreement”), among us, the Guarantors and the Collateral Agent.

The Notes are subject to the terms of the intercreditor agreement which governs the relative rights of the secured parties in respect of the ABL Facility and the Notes (the “Intercreditor Agreement”). The Intercreditor Agreement restricts the actions permitted to be taken by the Collateral Agent with respect to the Collateral on behalf of the holders of the Notes.

We may redeem some or all of the Notes at any time and from time to time at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

If we experience a Change of Control (as defined in the Indenture), we are required to offer to repurchase the Notes at 101% of the principal amount of such Notes plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

The Indenture contains covenants that, among other things, limit our ability and the ability of our restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other restricted payments, make certain investments, incur restrictions on the ability of our restricted subsidiaries that are not guarantors to pay dividends or make certain other payments, create or incur certain liens, sell assets and subsidiary stock, impair the security interests, transfer all or substantially all of our assets or enter into merger or consolidation transactions, and enter into transactions with affiliates. The Indenture provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest, breach of other agreements in the Indenture, failure to pay certain other indebtedness, failure of certain guarantees to be enforceable, failure to perfect certain collateral securing the Notes, failure to pay certain final judgments, and certain events of bankruptcy or insolvency.

We incurred debt issuance costs totaling $8.5 million related to the Notes. In accordance with ASC 835, the debt issuance costs have been deferred and are presented as a contra-liability, offsetting the outstanding balance of the Notes, and are amortized over the remaining life of the Notes.

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Second Amended and Restated ABL Credit Agreement

In August 2020, our subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, AM Retail Group, Inc. and The Donna Karan Company Store LLC (collectively, the “Borrowers”), entered into the second amended and restated credit agreement (the “ABL Credit Agreement”) with the Lenders named therein and with JPMorgan Chase Bank, N.A., as Administrative Agent. The ABL Credit Agreement is a five year senior secured credit facility that provides for borrowings in the aggregate principal amount of up to $650 million. We and certain of our subsidiaries (the “Guarantors”), are Loan Guarantors under the ABL Credit Agreement.

The ABL Credit Agreement refinanced, amended and restated the Amended Credit Agreement, dated as of December 1, 2016 (as amended, supplemented or otherwise modified from time to time prior to August 7, 2020, the “Prior Credit Agreement”). The Prior Credit Agreement provided for borrowings of up to $650 million. The ABL Credit Agreement extended the maturity date of this facility from December 2021 to August 2025.

Amounts available under the ABL Credit Agreement are subject to borrowing base formulas and overadvances as specified in the ABL Credit Agreement. Borrowings originally bore interest, at the Borrowers’ option, at LIBOR plus a margin of 1.75% to 2.25% or an alternate base rate margin of 0.75% to 1.25% (defined as the greatest of (i) the “prime rate” of JPMorgan Chase Bank, N.A. from time to time, (ii) the federal funds rate plus 0.5% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 1.00%, with the applicable margin determined based on Borrowers’ availability under the ABL Credit Agreement. In April 2023, we amended the ABL Credit Agreement to replace LIBOR with Adjusted Term Secured Overnight Financing Rate (“SOFR”) as a successor rate. All other material terms and conditions of the ABL Credit Agreement were unchanged. Borrowings under the amended ABL Credit Agreement now bear interest, at the Borrower’s option, at the alternate base rate (defined as, for a given day, the greatest of (i) the “prime rate” in effect on such day, (ii) the NYFRB Rate (as defined in the amendment) in effect on such day plus 0.5% and (iii) the Adjusted Term SOFR (defined as an interest rate per annum equal to the Term SOFR for such interest period plus 0.10%) for a one-month interest period as published two business days prior to such day plus 1%) plus an applicable spread or the Adjusted Term SOFR Rate plus an applicable spread. We applied certain provisions and practical expedients of ASC 848 – Reference Rate Reform related to the transition from LIBOR to SOFR. We do not expect a material change to our interest expense or results of operations as a result of transitioning the reference rate used in our ABL Credit Agreement from LIBOR to SOFR.

The ABL Credit Agreement is secured by specified assets of the Borrowers and the Guarantors. In addition to paying interest on any outstanding borrowings under the ABL Credit Agreement, we are required to pay a commitment fee to the lenders under the credit agreement with respect to the unutilized commitments. The commitment fee accrues at a tiered rate equal to 0.50% per annum on the average daily amount of the available commitments when the average usage is less than 50% of the total available commitments and decreases to 0.35% per annum on the average daily amount of the available commitments when the average usage is greater than or equal to 50% of the total available commitments.

The revolving credit facility contains covenants that, among other things, restrict our ability to, subject to specified exceptions, incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires us to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months. As of October 31, 2023, we were in compliance with these covenants.

As of October 31, 2023, we had no borrowings outstanding under the ABL Credit Agreement. The ABL Credit Agreement also includes amounts available for letters of credit. As of October 31, 2023, there were outstanding trade and standby letters of credit amounting to $2.0 million and $2.9 million, respectively.

At the date of the refinancing of the Prior Credit Agreement, we had $3.3 million of unamortized debt issuance costs remaining from the Prior Credit Agreement. We extinguished and charged to interest expense $0.4 million of the prior debt issuance costs and incurred new debt issuance costs totaling $5.1 million related to the ABL Credit Agreement. We have recorded $8.0 million of debt issuance costs related to our ABL Credit Agreement. As permitted under ASC 835, the debt issuance costs have been deferred and are presented as an asset which is amortized ratably over the term of the ABL Credit Agreement.

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LVMH Note

We issued to LVMH, as a portion of the consideration for the acquisition of DKI, a junior lien secured promissory note in favor of LVMH in the principal amount of $125 million (the “LVMH Note”) that bears interest at the rate of 2% per year. $75 million of the principal amount of the LVMH Note was repaid on June 1, 2023 and the remaining $50 million of such principal amount was paid on December 1, 2023. The LVMH Note is classified in current portion of notes payable in our Company’s condensed consolidated balance sheet as of October 31, 2023 and January 31, 2023. $75.0 million of the LVMH Note is classified in current portion of notes payable in our condensed consolidated balance sheet as of October 31, 2022.

Based on an independent valuation, it was determined that the LVMH Note should be treated as having been issued at a discount of $40 million in accordance with ASC 820 — Fair Value Measurements. This discount is being amortized as interest expense using the effective interest method over the term of the LVMH Note.

In connection with the issuance of the LVMH Note, LVMH entered into (i) a subordination agreement providing that our obligations under the LVMH Note are subordinate and junior to our obligations under the revolving credit facility and Term Loan and (ii) a pledge and security agreement with us and our subsidiary, G-III Leather, pursuant to which we and G-III Leather granted to LVMH a security interest in specified collateral to secure our payment and performance of our obligations under the LVMH Note that is subordinate and junior to the security interest granted by us with respect to our obligations under the revolving credit facility and Term Loan.

Unsecured Loans

Several of our foreign entities borrow funds under various unsecured loans of which a portion is to provide funding for operations in the normal course of business while other loans are European state backed loans as part of COVID-19 relief programs. In the aggregate, we are currently required to make quarterly installment payments of principal in the amount of €0.6 million under these unsecured loans. Interest on the outstanding principal amount of the unsecured loans accrues at a fixed rate equal to 0% to 5.0% per annum, payable on either a quarterly or monthly basis. As of October 31, 2023, the Company had an aggregate outstanding balance of €8.6 million ($9.1 million) under these unsecured loans.

Overdraft Facilities

During fiscal 2021, TRB entered into several overdraft facilities that allow for applicable bank accounts to be in a negative position up to a certain maximum overdraft. TRB entered into an uncommitted overdraft facility with HSBC Bank allowing for a maximum overdraft of €5 million. Interest on drawn balances accrues at a fixed rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin of 1.75% per annum, payable quarterly. The facility may be cancelled at any time by TRB or HSBC Bank. As part of a COVID-19 relief program, TRB and its subsidiaries have also entered into several state backed overdraft facilities with UBS Bank in Switzerland for an aggregate of CHF 4.7 million at varying interest rates of 0% to 0.5%. As of October 31, 2023, TRB had an aggregate of €1.8 million ($1.9 million) drawn under these facilities.

Foreign Credit Facility

KLH has a credit agreement with ABN AMRO Bank N.V. with a credit limit of €15.0 million which is secured by specified assets of KLH. Borrowings bear interest at the EURIBOR plus a margin of 1.7%. As of October 31, 2023, KLH had €3.9 million ($4.2 million) of borrowings outstanding under this credit facility.

Outstanding Borrowings

Our primary operating cash requirements are to fund our seasonal buildup in inventories and accounts receivable, primarily during the second and third fiscal quarters each year. Due to the seasonality of our business, we generally reach our peak borrowings under our asset-based credit facility during our third fiscal quarter. The primary sources to meet our operating cash requirements have been borrowings under this credit facility and cash generated from operations.

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We had no borrowings outstanding under our revolving credit facility at October 31, 2023 and $340.2 million outstanding at October 31, 2022, respectively. We had $400 million in borrowings outstanding under the Notes at October 31, 2023 and October 31, 2022, respectively. Our contingent liability under open letters of credit was approximately $4.9 million and $9.9 million at October 31, 2023 and 2022, respectively. In addition to the amounts outstanding under these two loan agreements, at October 31, 2023 and 2022, we had $50 million and $125 million of face value principal amount outstanding under the LVMH Note, respectively. As of October 31, 2023 and 2022, we had an aggregate of €8.6 million ($9.1 million) and €10.7 million ($10.4 million) outstanding under the Company’s various unsecured loans. As of October 31, 2023 and 2022, we had €1.8 million ($1.9 million) and €3.7 million ($3.7 million) outstanding under our various overdraft facilities. As of October 31, 2023 and 2022, we had €3.9 million ($4.2 million) and €10.6 million ($10.4 million) outstanding under KLH’s foreign credit facility.

Share Repurchase Program

In August 2023, our Board of Directors authorized an increase in the number of shares covered by our share repurchase program to an aggregate amount of 10,000,000 shares. Prior to this increase, we had 6,813,851 authorized shares under this program. Pursuant to this program, during the nine months ended October 31, 2023, we acquired 1,598,568 of our shares of common stock for an aggregate purchase price of $26.1 million. The timing and actual number of shares repurchased, if any, will depend on a number of factors, including market conditions and prevailing stock prices, and are subject to compliance with certain covenants contained in our loan agreement. Share repurchases may take place on the open market, in privately negotiated transactions or by other means, and would be made in accordance with applicable securities laws. As of October 31, 2023, we had remaining 10,000,000 shares authorized for purchase under this program. As of December 4, 2023, we had 45,727,662 shares of common stock outstanding.

Cash from Operating Activities

We generated $226.3 million in cash from operating activities during the nine months ended October 31, 2023, primarily as a result of our net income of $147.3 million, a decrease of $117.8 million in inventories and increases of $47.1 million in accounts payable and accrued expenses and $18.2 million in customer refund liabilities. We also generated cash from operating activities as a result of non-cash charges relating primarily to depreciation and amortization of $19.1 million and share-based compensation of $11.7 million. These items were offset, in part, by an increase of $188.3 million in accounts receivable.

The changes in operating cash flow items are consistent with our seasonal pattern with the exception of the decrease in inventory which resulted from our inventory returning to a more normalized level after experiencing a period of elevated inventory levels in fiscal 2023 due to supply chain disruptions. Our accounts receivable and customer refund liabilities increased because we experience higher sales levels in our third and fourth quarters.

Cash from Investing Activities

We used $19.3 million of cash in investing activities during the nine months ended October 31, 2023. We had $15.7 million in capital expenditures primarily related to infrastructure and information technology expenditures and additional fixturing costs at department stores. In addition, we used $3.6 million for an investment in the equity of a private company.

Cash from Financing Activities

Net cash used by financing activities was $199.1 million during nine months ended October 31, 2023 primarily as a result of repayments of borrowings of $112.8 million under our ABL Credit Agreement, partially offset by borrowings of $32.7 million under that Agreement, as well as the $75.0 million principal repayment of the LVMH Note. In addition, we used $26.1 million of cash to repurchase 1,598,568 shares of our common stock under our share repurchase program and $10.8 million for taxes paid in connection with net share settlements of stock grants that vested.

Critical Accounting Policies

Our discussion of results of operations and financial condition relies on our consolidated financial statements that are prepared based on certain critical accounting policies that require management to make judgments and estimates that are

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subject to varying degrees of uncertainty. We believe that investors need to be aware of these policies and how they impact our financial statements as a whole, as well as our related discussion and analysis presented herein. While we believe that these accounting policies are based on sound measurement criteria, actual future events can, and often do, result in outcomes that can be materially different from these estimates or forecasts.

The accounting policies and related estimates described in our Annual Report on Form 10-K for the year ended January 31, 2023 are those that depend most heavily on these judgments and estimates. As of October 31, 2023, there have been no material changes to our critical accounting policies.

Item 3.         Quantitative and Qualitative Disclosures About Market Risk.

There are no material changes to the disclosure made with respect to these matters in our Annual Report on Form 10-K for the year ended January 31, 2023.

Item 4.         Controls and Procedures.

As of the end of the period covered by this report, our management, including our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure, and thus, are effective in making known to them material information relating to G-III required to be included in this report.

Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting during the period covered by the Quarterly Report that have materially affected, or are reasonably likely to materially affect, these internal controls.

On May 31, 2022, we acquired KLH. See Note 6 – Karl Lagerfeld Acquisition in the accompanying Notes to our Condensed Consolidated Financial Statements in this Quarterly Report and Note 15 – Karl Lagerfeld Acquisition in the accompanying Notes to our Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended January 31, 2023 for further information on our acquisition of KLH. The KLH acquisition represents a change in our internal control over financial reporting. We have substantially completed the design of the internal controls environment for KLH and are in the process of completing our effectiveness testing. We will include the internal controls and procedures of KLH in our annual assessment of the effectiveness of our internal control over financial reporting for our 2024 fiscal year.

PART II – OTHER INFORMATION

Item 1A.      Risk Factors.

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors contained in “Item 1A.-Risk Factors” in our Annual Report on Form 10-K for the year ended January 31, 2023 (the “Annual Report”), which could materially affect our business, financial condition and/or future results. As of October 31, 2023, there have been no material changes in our risk factors from those set forth in the Annual Report. The risks described in the Annual Report are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or future results.

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Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds.

The following table provides information with respect to the Company’s common stock that the Company repurchased during the three months ended October 31, 2023. Included in this table are shares withheld during September 2023 to satisfy tax withholding requirements in connection with stock awards.

Date Purchased	Total Number of Shares Purchased (1)	Average Price Paid Per Share (1)		Total Number of Share Purchased as Part of Publicly Announced Program (2)	Maximum Number of Shares that may yet be Purchased Under the Program (2)
August 1 - August 31, 2023	—	$	—	—		10,000,000
September 1 - September 30, 2023	1,344		24.42	—		10,000,000
October 1 - October 31, 2023	—		—	—		10,000,000
	1,344	$	12.21	—		10,000,000

(1) Included in this table are 1,344 shares withheld during the three-month period ended October 2023 in connection with the settlement of vested restricted stock units to satisfy tax withholding requirements. Our 2015 Long-Term Incentive Plan provides that shares withheld are valued at the closing price per share on the date withheld.

(2) In August 2023, our Board of Directors reapproved our previously authorized share repurchase program and increased the number of shares remaining under that program from 6,813,851 to 10,000,000 shares. This program has no expiration date. Repurchases under the program may be made from time to time through open market purchases, accelerated share repurchase programs, privately negotiated transactions or other methods, as we deem appropriate.

Item 5.        Other Information

During the three months ended October 31, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Item 6.        Exhibits.

3.1	Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, dated July 2, 2008).
3.1(a)	Certificate of Amendment of Certificate of Incorporation, dated June 8, 2006 (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q, dated September 13, 2006).
3.1(b)	Certificate of Amendment of Certificate of Incorporation, dated June 7, 2011 (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, dated June 9, 2011).
3.1(c)	Certificate of Amendment of Certificate of Incorporation, dated June 30, 2015 (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, dated July 1, 2015).
3.2	By-Laws, as amended, of G-III (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K, dated March 15, 2013).
10.1	Performance Share Unit Agreement, dated August 9, 2023 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K, dated August 10, 2023).
10.2	Employment Agreement, dated August 9, 2023, between G-III Apparel Group, Ltd. and Morris Goldfarb (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, dated August 10, 2023).
10.3	G-III Apparel Group, Ltd. 2015 Long-Term Incentive Plan, as amended (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K, dated August 10, 2023).
10.4	Employment Agreement, dated August 29, 2023, between G-III Apparel Group, Ltd. and Sammy Aaron (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K, dated August 30, 2023).
10.5	G-III Apparel Group, Ltd. 2023 Long-Term Incentive Plan (incorporated by reference to Appendix A of the Company’s Schedule 14A, filed on September 11, 2023).
10.6	Performance Share Unit Agreement, dated October 17, 2023 (filed herewith).
31.1	Certification by Morris Goldfarb, Chief Executive Officer of G-III Apparel Group, Ltd., pursuant to Rule 13a - 14(a) or Rule 15d - 14(a) of the Securities Exchange Act of 1934, as amended, in connection with G-III Apparel Group, Ltd.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2023.
31.2	Certification by Neal S. Nackman, Chief Financial Officer of G-III Apparel Group, Ltd., pursuant to Rule 13a - 14(a) or Rule 15d - 14(a) of the Securities Exchange Act of 1934, as amended, in connection with G-III Apparel Group, Ltd.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2023.
32.1*	Certification by Morris Goldfarb, Chief Executive Officer of G-III Apparel Group, Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with G-III Apparel Group, Ltd.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2023.
32.2*	Certification by Neal S. Nackman, Chief Financial Officer of G-III Apparel Group, Ltd., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, in connection with G-III Apparel Group, Ltd.’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2023.
101.INS	iXBRL Instance Document.
101.SCH	iXBRL Schema Document.
101.CAL	iXBRL Calculation Linkbase Document.
101.DEF	iXBRL Extension Definition.
101.LAB	iXBRL Label Linkbase Document.
101.PRE	iXBRL Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* This certification is deemed furnished, and not filed, for purposes of section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	G-III APPAREL GROUP, LTD.                   (Registrant)
Date: December 6, 2023	By:	/s/ Morris Goldfarb
		Morris Goldfarb
		Chief Executive Officer
Date: December 6, 2023	By:	/s/ Neal S. Nackman
		Neal S. Nackman
		Chief Financial Officer

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EX-10.6

Exhibit 10.6

G-III APPAREL GROUP, LTD.

2023 LONG-TERM INCENTIVE PLAN

PERFORMANCE SHARE UNIT AGREEMENT

AGREEMENT, made as of the 17^th day of October, 2023 (the “Effective Date”), between G-III APPAREL GROUP, LTD. (the “Company”) and Morris Goldfarb (the “Participant”), pursuant to the G-III Apparel Group, Ltd. 2023 Long-Term Incentive Plan, as amended (the “Plan”). Capitalized terms that are used but not defined in this Agreement shall have the meanings given to them by the Plan. “Initial Grant Effective Date” means August 9, 2023.

1.         Performance Share Unit Award. In accordance with the Plan, the Company hereby grants to the Participant 320,000 performance share units (“PSUs”). Each PSU represents the right to receive one share of the Company’s common stock (a “Share”), subject to the terms and conditions of this Agreement and the Plan including, without limitation, the potential 20% upward or downward adjustment in the number of Shares based on the Company’s Total Shareholder Return (TSR) relative to the TSR of the component companies of the S&P 1500 Apparel, Accessories and Luxury Good Index issued to the Participant pursuant to this Agreement.

2.         Vesting Conditions.  The performance condition (“Minimum Share Price Condition”) is satisfied as follows:

(a) as to all PSUs, if at any time, or from time to time, beginning on the Initial Grant Effective Date and ending on or before the fifth anniversary of the Initial Grant Effective Date (“Fifth Anniversary Date”), the average closing price per share of the Company’s common stock on the Nasdaq Global Select Market during any period of fifteen (15) consecutive trading days (the “Average Closing Price”) is at least $30.00; or

(b) as to the number of PSUs set forth on Exhibit A hereto, if at any time, or from time to time, beginning on the Initial Grant Effective Date and ending on or before the Fifth Anniversary Date the Average Closing Price is at least $25.00.

The Participant’s right to receive Shares covered by this Agreement shall become vested on the date the Compensation Committee (the “Committee”) of the Board of Directors of the Company has confirmed the satisfaction of the Minimum Share Price Condition, subject to the condition (the “Service Condition”) that Participant is continuously employed with or providing other service to the Company through the third anniversary of the Initial Grant Effective Date (the “Third Anniversary Date”). Subject to paragraph 5 below, if the Minimum Share Price Condition is not satisfied by the Fifth Anniversary Date, the award will be forfeited. The number of PSUs that vest in accordance with this paragraph 2 may be increased or decreased by up to 20% in accordance with Exhibit B, and the timing of settlement of such vested PSUs shall be in accordance with paragraph 3 and Exhibit B. All determinations with respect to the satisfaction of the performance and service conditions shall be made by the Committee.

3.         Settlement of PSUs. If and when PSUs become vested, the Participant will have the right to receive a corresponding number of whole Shares from the Company in full settlement of such vested PSUs, unless the Committee shall decide to settle such award in cash, or a combination of Shares and cash, with any cash paid in lieu of Shares based on the Fair Market Value of such Shares on the vesting date. Such Shares will be issued and delivered in certificated or electronic form, or if applicable such cash paid, and, subject to Exhibit B, as soon as practicable after the lapse of the applicable substantial risks of forfeiture (as determined in accordance with Section 409A of the Code for purposes of the short-term deferral exemption thereunder) (but not more than 75 days after such date and in no event later than the 15^th day of the third month of the Company’s tax year following the tax year in which such risk of forfeiture lapses), subject to any applicable tax withholding and other conditions set forth in the Plan, this Agreement and/or applicable law. The applicable substantial risks of forfeiture are, at any given time between the Initial Grant Effective Date and the Fifth Anniversary Date, the Minimum Share Price Condition and the Service Condition. Once the Service Condition has been satisfied or deemed satisfied, or the Minimum Share Price Condition has been satisfied, the other condition must still be satisfied (or deemed satisfied), in whole or in part, in accordance with the terms of this Agreement before the Participant becomes entitled to receive settlement of any part of the PSUs.

4.         Termination of Employment or Service; Acceleration of Vesting. (a) Upon the termination of the Participant’s employment or other service with the Company by the Company for cause (as defined in Section 6(a) of the Employment Agreement) or by the Participant (x) without cause (as defined in Section 6(b) of the Employment Agreement) or (y) without Good Reason (as defined in the Plan), any unvested PSUs then covered by this Agreement shall be canceled and the Participant shall have no further rights with respect thereto.  

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(b) In the event that the Company terminates the Participant’s employment or service without cause (as defined in Section 6(a) of the Employment Agreement) or the Participant terminates his employment or service (x) for cause (as defined in Section 6(b) of the Employment Agreement) or (y) for Good Reason (as defined in the Plan), the Service Condition will be deemed to be satisfied and the Compensation Committee (or board of directors of the Company) shall determine in good faith whether the Minimum Share Price Condition has been satisfied as of the date of such termination of employment or service and the remaining award will continue to be subject to the vesting conditions in paragraph 2 above through the Fifth Anniversary Date and be settled in accordance with paragraph 3 and Exhibit B.

(c) In the event the Participant’s employment or service terminates by reason of his death or disability, then the Service Condition will be deemed to be satisfied and the Compensation Committee (or the board of directors of the Company) shall determine in good faith whether the Minimum Share Price Condition has been satisfied as of the date of such termination of employment or service.

5.Change in Control. (a) As of the closing date of a Change in Control transaction (the “Closing Date”), the Compensation Committee (or the board of directors of the Company) shall determine in good faith whether the Minimum Share Price Condition has been satisfied (together with the corresponding number of vested PSUs, such number of vested PSUs referred to as the “CIC Date Vested PSUs”) based on an “Average Closing Price” equal to the greater of (x) the highest average closing price per share of the Company’s common stock on the Nasdaq Global Select Market during any period of fifteen (15) consecutive trading days (calculated through the Closing Date) and (y) the per share price paid to the Company’s stockholders at the closing of such Change in Control transaction (the "Change in Control Price"). If the number of CIC Date Vested PSUs is zero, then the Award will be forfeited.

(b) If the number of CIC Date Vested PSUs is greater than zero, and in connection with a Qualifying Transaction (defined below) the Award represented by this Agreement is assumed by the issuer of the Qualifying Shares (defined below) under Section 9.1 of the Plan, then this Agreement shall continue in full force and effect, with the Minimum Share Price Condition satisfied as to the number of CIC Date Vested PSUs, and then the Award will be settled in accordance with paragraph 3 and Exhibit B on the first to occur of (i) the Service Condition having been satisfied or (ii) the Company terminates the Participant’s employment or service without cause (as defined in Section 6(a) of the Employment Agreement) or the Participant terminates his employment or service for cause (as defined in Section 6(b) of the Employment Agreement).  

(c)  If the Company consummates a Change in Control transaction that is not a Qualifying Transaction, or the Award represented by this Agreement is not assumed under Section 9.1 of the Plan in connection with the closing of such Change in Control transaction, and the number of CIC Date Vested PSUs is greater than zero, the Service Condition shall be deemed satisfied, and the award will be settled in accordance with paragraph 3 and Exhibit B.

(d) “Qualifying Shares” means shares of common stock of a company (other than the Company) listed for trading on the NYSE or Nasdaq Stock Market. “Qualifying Transaction” means a Change in Control transaction pursuant to which the Company’s stockholders receive Qualifying Shares (defined below) in exchange for their shares of the Company’s common stock.

6.         No Rights as a Shareholder. The Participant shall have no ownership or other rights of a stockholder with respect to Shares underlying the PSUs (including any right to receive dividends or to vote such Shares) unless and until such Shares are issued to the Participant in settlement of vested PSUs.

7.         Tax Withholding. Prior to any settlement of vested PSUs, the Participant shall be required to pay or make adequate arrangements satisfactory to the Company for the payment of all applicable tax withholding obligations. The Participant hereby authorizes the Company to satisfy all or part of the amount of such tax withholding obligations by deducting such amount from cash compensation or other payments that would otherwise be owed to the Participant. The Committee, acting in its sole discretion and pursuant to applicable law, may permit the Participant to satisfy any such tax withholding obligations with Shares that would otherwise be issued to the Participant in settlement of vested PSUs, and/or with previously owned shares of the Company’s common stock held by the Participant. The amount of the Participant’s tax withholding obligation that is satisfied in shares of the Company’s common stock, if any, shall be based upon the Fair Market Value of such shares on the date such shares are delivered or withheld.

8.         Restrictions on Transfer. Except as otherwise permitted by the Committee acting in its discretion under the Plan, the PSUs and the Participant’s right to receive Shares in settlement of vested PSUs may not be sold, assigned, transferred, pledged or otherwise alienated or disposed of (except by will or the laws of descent and distribution), and may not become subject to attachment, garnishment, execution or other legal or equitable process, and any attempt to do so shall be null and void.

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9.         No Other Rights Conferred. Nothing contained herein shall be deemed to give the Participant a right to be retained in the employ or other service of the Company or any affiliate or affect the right of the Company and its affiliates to terminate or amend the terms and conditions of the Participant’s employment or other service.

10.       Provisions of the Plan Control; Spin-Offs. The provisions of the Plan, the terms of which are incorporated in this Agreement, shall govern if and to the extent that there are inconsistencies between those provisions and the provisions hereof. In connection with a ‘spin off’ transaction (or other similar capital change) covered by Section 4.2 of the Plan, and the Committee or the Board is exercising its discretion under that Section to make equitable adjustments to the Award, the Participant shall have the right to direct the Committee to adjust the Award under one of the methods listed on Exhibit C hereto, provided that the Participant will not have that right if the exercise of that right would result in adverse tax consequences to the Company under Section 409A.

11.       Successors. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns.

12.       Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and may not be modified except by written instrument executed by the parties.

13.       Governing Law. This Agreement shall be governed by the laws of the State of Delaware, without regard to its principles of conflict of laws.

14.       Counterparts. This Agreement may be executed in separate counterparts, each of which will be an original and all of which taken together shall constitute one and the same agreement.

G-III APPAREL GROUP, LTD.
By:	/s/ Neal Nackman
Neal Nackman
/s/ Morris Goldfarb
Morris Goldfarb

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Exhibit A

Vesting of PSUs

Average Stock Price*% of Shares Vested # of Shares Vested+

$30.00100%320,000

$29.0090%288,000

$28.0080%256,000

$27.0070%224,000

$26.0060%192,000

$25.0050%160,000

Less than $25.000%0

*If (i) the average closing price per share of the Company’s common stock on the Nasdaq Global Select Market for any period of fifteen (15) consecutive trading days ending on the fifth anniversary of the Initial Grant Effective Date is at least equal to the amount listed in the column “Average Stock Price” or (ii) in the event of a Change in Control that is not a Qualifying Transaction, the Change in Control Price is at least equal to the amount listed in the Column Average Stock Price (as adjusted as provided in the Agreement), then in each case the percentage and number of vested PSUs is as set forth opposite such average stock price.

+Will also apply in the event of a Change in Control Transaction that is a Qualifying Transaction, and amounts listed under “Average Stock Price” and “# of Shares Vested” would be modified as provided in the Agreement.

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Exhibit B

Total Shareholder Return (“TSR”) Modifier. The total number of PSUs that vest, if any, based on Section 2 of this Agreement shall then be subject to adjustment, determined by multiplying (i) such total number of vested PSUs as determined in accordance with Exhibit A by (ii) the Relative TSR Multiplier Percentage which is determined based on the Company's TSR relative to the Comparator Companies (defined below) in the S&P 1500 Apparel, Accessories and Luxury Good Index (the “Comparator Group”) over the Comparison Period (defined below), as set forth in the following chart:

Performance Level	Relative TSR Percentile Achieved	Relative TSR Multiplier Percentage
Threshold	At or less than 25th	80%
Target	At the 50th	No modifier
Ceiling	At or above 75th	120%

If the Relative TSR Percentile Achieved falls in between the Performance Levels specified above, linear interpolation will be used to calculate the Relative TSR Multiplier Percentage, For the avoidance of doubt, in no event may the Relative TSR Multiplier Percentage be less than 80% or greater than 120%.

TSR modifier will be applied as follows to allow for an adjustment of up to +/-20% for shares that vest during each year. The periods on which TSR is measured (“Comparison Period”) and settled is as detailed below:

For shares that vest on the 3rd anniversary of the grant date of the initial installment (i.e., in August 2026), TSR modifier will be applied as of the 3rd anniversary date and shares will be settled as soon as practical after the 3rd anniversary, subject to paragraph 3 of the PSU Agreement to which this Exhibit is attached.

For shares that vest after the 3rd anniversary of the grant date of the initial installment and on or before 1/31/2027, the TSR modifier will be applied as of 1/31/2027 and shares will be settled prior to 75 days following 1/31/2027

For shares that vest between 2/1/2027 and on or before 1/31/2028, the TSR modifier will be applied as of 1/31/2028 and shares will be settled prior to 75 days following 1/31/2028

For shares that vest between 2/1/2028 and the 5th anniversary of the grant date of the initial installment, the TSR modifier will be applied as of the 5th anniversary and shares will be settled as soon as practical after the 5th anniversary, but no later than as provided in paragraph 3 of the PSU Agreement to which this Exhibit is attached.

In the event the Company's absolute TSR for the Comparison Period is less than zero, no positive adjustment shall be made.

The final number of PSUs to vest based on this calculation shall be rounded to the nearest whole share, with no payment for any fractional shares made.

(A) Formula for Calculating TSR and Determining Percentile Rank

TSR for the Company shall be expressed as a percentage and calculated according to the following formula:

TSR = (End Average Share Value / Begin Average Share Value) -1

Where:

End Average Share Value means the average Share Value over the trading days in the End Average Period.

End Average Period means the fifteen (15) trading days at the end of the Comparison Period.

Begin Average Share Value means the average Share Value over the trading days in Begin Average Period.

Begin Average Period means the first fifteen (15) trading days during the first month of the Comparison Period.

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Share Value means, for a given trading day, the Closing Price of a share of Common Stock multiplied by the Accumulated Shares for such trading day.

Accumulated Shares means, for a given trading day, the sum of (i) one (1) share plus (ii) the cumulative number of shares of Common Stock purchasable with dividends declared on the Common Stock to that point during the period since the first day of the Begin Average Period, assuming same day reinvestment of such dividends at the Closing Price on the ex-dividend date.

Closing Price means, for a given trading day, the closing price of a share of the Company’s common stock on the NASDAQ National Market.

Comparator Companies has the meaning ascribed to such term on Schedule I hereto.

(B) Percentile rank for the Company shall be expressed as a percentage and calculated as follows:

FIRST: For the Company and for each other company in the Comparator Group, determine the TSR for the Comparison Period.

SECOND: Rank the TSR values determined in the first step for the Comparator Companies from high to low and determine the Company's percentile rank by applying the percentile rank function available in Microsoft Excel or any comparable spreadsheet application.

THIRD: Plot the percentile rank for the Company determined in the second step against the Relative TSR Percentile table above and determine the resulting Relative TSR Multiplier Percentage corresponding to that percentile rank.

The Comparator Group is determined as of the first day of the Begin Average Period. Any new company entrants into the Comparator Group after that date are to be excluded from the Comparator Group.

A company that (i) files for bankruptcy, reorganization, or liquidation under any chapter of the U.S. Bankruptcy Code, (ii) is the subject of an involuntary bankruptcy proceeding that is not dismissed within 30 days, (iii) is the subject of a stockholder approved plan of liquidation or dissolution, or (iv) ceases to conduct substantial business operations during the Comparison Period shall be assigned a TSR of negative one hundred percent (-100%). A company shall be removed from the Comparator Group if they undergo a Specified Corporate Change. A company that is removed from the Comparator Group before the measurement date will not be included at all in the computation of the Relative TSR Multiplier Percentage. A company in the Comparator Group will be deemed to have undergone a “Specified Corporate Change” if it:

•Ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system, unless such cessation of such listing is due to a low stock price or low trading volume; or

•Has gone private; or

•Has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction; or

•Has been acquired by another company (whether by a Comparator Group company or otherwise, but not including internal reorganizations), or has sold all or substantially all of its assets.

TSR calculations shall also be adjusted as deemed appropriate by the Compensation Committee to reflect any stock split, reverse stock split or other similar corporate transaction.

The Company shall rely on press releases, public filings, website postings, and other reasonably reliable information available regarding a company in the Comparator Group in making a determination that a Specified Corporate Change has occurred.

(C) Compensation Committee Certification

Notwithstanding anything to the contrary herein, the initial performance measurement described in the Agreement and the adjustment described in this Exhibit B shall each be subject to certification by the Compensation Committee.

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Schedule I

COMPARATOR GROUP

S&P 1500 Textiles, Apparel & Luxury Goods

Crocs, Inc.

Deckers Outdoor Corporation

Capri Holdings Limited

Movado Group, Inc.

Tapestry, Inc.

Oxford Industries, Inc.

Kontoor Brands, Inc.

NIKE, Inc.

Skechers USA, Inc.

Ralph Lauren Corporation

Columbia Sportswear Company

PVH Corp.

Steve Madden, Ltd.

Carter’s, Inc.

Hanes Brands, Inc.

Under Armour, Inc.

Wolverine World Wide, Inc.

V.F. Corporation

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Exhibit C

Methods

● Concentration Method. The Company awards held by specified employees (typically, employees who will be primarily dedicated to the spin-off company) are converted into awards of the spin-off company, while the parent awards held by all other employees continue to be based on parent equity and are adjusted to reflect the decrease in value of parent equity upon the spin-off.

● Basket Method. All Company awards (regardless of employee) are converted into (1) an adjusted parent award and (2) a spin-off company award. This method is sometimes referred to as the “shareholder method,” because the treatment closely mirrors the treatment of shares generally, or as the “bifurcated method.”

● Plan. As otherwise provided under Section 4.2 of the Plan.

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EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Morris Goldfarb, certify that:

1. I have reviewed this quarterly report on Form 10-Q of G-III Apparel Group, Ltd.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 6, 2023

/s/ Morris Goldfarb

Morris Goldfarb

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a - 14(a) OR RULE 15d - 14(a) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Neal S. Nackman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of G-III Apparel Group, Ltd.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 6, 2023

/s/ Neal S. Nackman

Neal S. Nackman

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of G-III Apparel Group, Ltd. (the “Company”) on Form 10-Q for the quarterly period ended October 31, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Morris Goldfarb, Chief Executive Officer of the Company, hereby certify that, to my knowledge, (a) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Morris Goldfarb

Morris Goldfarb

Chief Executive Officer

Date: December 6, 2023

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of G-III Apparel Group, Ltd. (the “Company”) on Form 10-Q for the quarterly period ended October 31, 2023, as filed with the Securities and Exchange Commission (the “Report”), I, Neal S. Nackman, Chief Financial Officer of the Company, hereby certify that, to my knowledge, (a) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (b) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Neal S. Nackman

Neal S. Nackman

Chief Financial Officer

Date: December 6, 2023

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2023	Dec. 04, 2023
Document And Entity Information Abstract
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Oct. 31, 2023
Document Transition Report	false
Entity File Number	0-18183
Entity Registrant Name	G III APPAREL GROUP LTD /DE/
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	41-1590959
Entity Address, Address Line One	512 Seventh Avenue
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	212
Local Phone Number	403-0500
Title of 12(b) Security	Common Stock
Trading Symbol	GIII
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock Shares Outstanding		45,727,662
Entity Central Index Key	0000821002
Current Fiscal Year End Date	--01-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Current assets
Cash and cash equivalents	$ 197,391	$ 191,652	$ 150,719
Accounts receivable, net of allowance for doubtful accounts of $18,412 $18,258 and $18,297, respectively	863,221	674,963	881,135
Inventories	591,530	709,345	900,987
Prepaid income taxes	2,216	5,886	1,110
Prepaid expenses and other current assets	58,779	70,654	50,594
Total current assets	1,713,137	1,652,500	1,984,545
Investments in unconsolidated affiliates	24,354	24,467	25,870
Property and equipment, net	52,032	53,742	54,185
Operating lease assets	221,474	239,665	216,663
Other assets, net	53,852	52,644	54,206
Other intangibles, net	32,565	34,842	34,585
Deferred income tax assets, net	26,389	26,389	8,973
Trademarks	625,530	628,156	607,526
Goodwill			303,668
Total assets	2,749,333	2,712,405	3,290,221
Current liabilities
Current portion of notes payable	59,099	135,518	91,613
Accounts payable	179,396	169,508	223,154
Accrued expenses	153,200	115,586	150,349
Customer refund liabilities	108,042	89,760	99,528
Current operating lease liabilities	55,897	52,917	50,645
Income tax payable	46,380	14,875	26,956
Other current liabilities	330	905	933
Total current liabilities	602,344	579,069	643,178
Notes payable, net of discount and unamortized issuance costs	402,846	483,840	787,892
Deferred income tax liabilities, net	44,265	44,783	34,894
Noncurrent operating lease liabilities	183,522	204,974	185,171
Other non-current liabilities	14,543	15,141	16,787
Total liabilities	1,247,520	1,327,807	1,667,922
Redeemable noncontrolling interests	(1,407)	(850)	41
Stockholders' Equity
Preferred stock; 1,000 shares authorized; no shares issued and outstanding
Common stock - $0.01 par value; 120,000 shares authorized; 49,396, 49,396 and 49,396 shares issued, respectively	264	264	264
Additional paid-in capital	453,504	468,712	465,230
Accumulated other comprehensive loss	(15,995)	(11,653)	(42,744)
Retained earnings	1,131,258	983,944	1,245,061
Common stock held in treasury, at cost - 3,675, 1,909 and 2,680 shares, respectively	(65,811)	(55,819)	(45,553)
Total stockholders' equity	1,503,220	1,385,448	1,622,258
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$ 2,749,333	$ 2,712,405	$ 3,290,221

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CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 18,412	$ 18,297	$ 18,258
Preferred stock, shares authorized	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued	0	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	120,000,000	120,000,000	120,000,000
Common stock, shares issued	49,396,000	49,396,000	49,396,000
Treasury stock, shares	3,670,000	2,680,000	1,907,000

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Net sales	$ 1,067,110	$ 1,078,299	$ 2,333,460	$ 2,372,300
Cost of goods sold	633,697	733,672	1,373,594	1,552,708
Gross profit	433,413	344,627	959,866	819,592
Selling, general and administrative expenses	236,308	239,893	703,476	616,351
Depreciation and amortization	6,595	7,270	19,130	20,021
Asset impairments and gain on lease terminations	222	250	222	212
Operating profit (loss)	190,288	97,214	237,038	183,008
Other income	(3,129)	(2,795)	(1,964)	24,823
Interest and financing charges, net	(11,024)	(16,052)	(32,666)	(40,805)
Income (loss) before income taxes	176,135	78,367	202,408	167,026
Income tax expense (benefit)	48,755	17,521	55,651	39,489
Net income (loss)	127,380	60,846	146,757	127,537
Less: Loss attributable to noncontrolling interests	(260)	(257)	(557)	(519)
Net income (loss) attributable to G-III Apparel Group, Ltd.	$ 127,640	$ 61,103	$ 147,314	$ 128,056
Basic:
Net income (loss) per common share	$ 2.79	$ 1.29	$ 3.21	$ 2.68
Weighted average number of shares outstanding (in shares)	45,723	47,488	45,904	47,832
Diluted:
Net income (loss) per common share	$ 2.74	$ 1.26	$ 3.13	$ 2.62
Weighted average number of shares outstanding (in shares)	46,560	48,475	46,992	48,866
Other comprehensive loss:
Foreign currency translation adjustments	$ (11,391)	$ (26,473)	$ (4,317)	$ (28,111)
Other comprehensive loss	(11,391)	(26,473)	(4,317)	(28,111)
Comprehensive income (loss)	115,989	34,373	142,440	99,426
Comprehensive loss attributable to noncontrolling interests:
Net loss	(260)	(257)	(557)	(519)
Foreign currency translation adjustments	(1)	(45)	(25)	(104)
Comprehensive loss attributable to noncontrolling interests	(261)	(302)	(582)	(623)
Comprehensive income (loss) attributable to G-III Apparel Group, Ltd.	$ 115,728	$ 34,071	$ 141,858	$ 98,803

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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Treasury Stock, Common [Member]	Total
Balance at beginning of period at Jan. 31, 2022	$ 264	$ 456,329	$ (14,529)	$ 1,117,005		$ 1,519,912
Balance at beginning of period, treasury at Jan. 31, 2022					$ (39,157)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity awards exercised/vested, net		(10,226)			10,226
Share-based compensation expense		28,917				28,917
Taxes paid for net share settlements		(9,790)				(9,790)
Other comprehensive gain (loss), net			(28,215)			(28,215)
Repurchases of common stock					(16,622)	(16,622)
Net Income (Loss)				128,056		128,056
Balance at end of period, treasury at Oct. 31, 2022					(45,553)	(45,553)
Balance at end of period at Oct. 31, 2022	264	465,230	(42,744)	1,245,061		1,622,258
Balance at beginning of period at Jul. 31, 2022	264	461,621	(16,226)	1,183,958		1,584,001
Balance at beginning of period, treasury at Jul. 31, 2022					(45,616)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity awards exercised/vested, net		(63)			63
Share-based compensation expense		3,672				3,672
Other comprehensive gain (loss), net			(26,518)			(26,518)
Net Income (Loss)				61,103		61,103
Balance at end of period, treasury at Oct. 31, 2022					(45,553)	(45,553)
Balance at end of period at Oct. 31, 2022	264	465,230	(42,744)	1,245,061		1,622,258
Balance at beginning of period at Jan. 31, 2023	264	468,712	(11,653)	983,944		1,385,448
Balance at beginning of period, treasury at Jan. 31, 2023					(55,819)	(55,819)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity awards exercised/vested, net		(16,108)			16,108
Share-based compensation expense		11,728				11,728
Taxes paid for net share settlements		(10,828)				(10,828)
Other comprehensive gain (loss), net			(4,342)			(4,342)
Repurchases of common stock					(26,100)	(26,100)
Net Income (Loss)				147,314		147,314
Balance at end of period, treasury at Oct. 31, 2023					(65,811)	(65,811)
Balance at end of period at Oct. 31, 2023	264	453,504	(15,995)	1,131,258		1,503,220
Balance at beginning of period at Jul. 31, 2023	264	448,762	(4,603)	1,003,618		1,382,115
Balance at beginning of period, treasury at Jul. 31, 2023					(65,926)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity awards exercised/vested, net		(115)			115
Share-based compensation expense		4,890				4,890
Taxes paid for net share settlements		(33)				(33)
Other comprehensive gain (loss), net			(11,392)			(11,392)
Net Income (Loss)				127,640		127,640
Balance at end of period, treasury at Oct. 31, 2023					$ (65,811)	(65,811)
Balance at end of period at Oct. 31, 2023	$ 264	$ 453,504	$ (15,995)	$ 1,131,258		$ 1,503,220

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
Cash flows from operating activities
Net Income (Loss)	$ 147,314	$ 128,056
Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of assets and liabilities acquired:
Depreciation and amortization	19,130	20,021
Loss on disposal of fixed assets	239	127
Non-cash operating lease costs	43,467	38,264
Gain on lease terminations		(38)
Asset impairment	222	250
Equity (gain)/loss in unconsolidated affiliates	3,725	(817)
Change in fair value of equity investment	(1,009)	1,182
Share-based compensation	11,728	28,917
Deferred financing charges and debt discount amortization	6,054	7,629
Deferred income taxes	(519)	(1,347)
Non-cash gain on fair value of prior minority ownership of Karl Lagerfeld		(30,925)
Changes in operating assets and liabilities:
Accounts receivable, net	(188,258)	(248,280)
Inventories	117,815	(355,313)
Income taxes, net	35,175	29,444
Prepaid expenses and other current assets	12,636	5,274
Other assets, net	(3,044)	(718)
Customer refund liabilities	18,282	12,740
Operating lease liabilities	(43,750)	(38,312)
Accounts payable, accrued expenses and other liabilities	47,064	(11,484)
Net cash provided by (used in) operating activities	226,271	(415,330)
Cash flows from investing activities
Operating lease assets initial direct costs	(52)	(85)
Investment in e-commerce retailer		(25,000)
Investment in equity interest of private company	(3,600)
Investment in equity securities		(22,378)
Sale of equity securities		22,434
Capital expenditures	(15,653)	(14,803)
Acquisition of KLH, net of cash acquired		(168,592)
Acquisition of other foreign business, net of cash acquired		(2,701)
Net cash used in investing activities	(19,305)	(211,125)
Cash flows from financing activities
Repayment of borrowings - revolving credit facility	(112,826)	(172,513)
Proceeds from borrowings - revolving credit facility	32,738	512,748
Repayment of borrowings - LVMH Note	(75,000)
Repayment of borrowings - foreign facilities	(106,100)	(28,512)
Proceeds from borrowings - foreign facilities	99,032	36,863
Purchase of treasury shares	(26,100)	(16,622)
Taxes paid for net share settlements	(10,828)	(9,790)
Net cash provided by (used in) financing activities	(199,084)	322,174
Foreign currency translation adjustments	(2,143)	(10,984)
Net increase (decrease) in cash and cash equivalents	5,739	(315,265)
Cash and cash equivalents at beginning of year	191,652	465,984
Cash payments:
Interest, net	32,882	38,391
Income tax payments, net	$ 20,195	$ 4,643

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Basis of Presentation

9 Months Ended

Oct. 31, 2023

SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Basis of Presentation

NOTE 1 – BASIS OF PRESENTATION

As used in these financial statements, the term “Company” or “G-III” refers to G-III Apparel Group, Ltd. and its subsidiaries. The Company designs, sources and markets an extensive range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company also operates retail stores and licenses its proprietary brands under several product categories.

The Company consolidates the accounts of its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that is 75% owned by the Company and is treated as a consolidated majority-owned subsidiary. Sonia Rykiel is a wholly-owned operating subsidiary. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that was 19% owned by the Company through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that was 49% owned by the Company and 51% indirectly owned by KLH through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. All material intercompany balances and transactions have been eliminated. The results of KLH are included in the Company’s consolidated financial statements beginning May 31, 2022.

KLH, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Fabco and Sonia Rykiel report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. Accordingly, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included in the financial statements for the quarter ended or ending closest to the Company’s fiscal quarter end. For example, with respect to the Company’s results for the nine-month period ended October 31, 2023, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included for the nine-month period ended September 30, 2023. For the year ended January 31, 2023, the results of KLH, which includes KLNA, are included for the period from May 31, 2022 through December 31, 2022. The results of the Company’s previous 49% ownership interest in KLNA and 19% ownership interest in KLH are included for the period from January 1, 2022 through May 30, 2022. The Company’s retail operations segment reports on a 52/53 week fiscal year. For fiscal 2024 and 2023, the three and nine-month periods for the retail operations segment were each 13-week and 39-week periods, respectively, and ended on October 28, 2023 and October 29, 2022, respectively.

The results for the three and nine months ended October 31, 2023 are not necessarily indicative of the results expected for the entire fiscal year, given the seasonal nature of the Company’s business. The accompanying financial statements included herein are unaudited. All adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim period presented have been reflected.

The accompanying financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2023 filed with the Securities and Exchange Commission (the “SEC”).

Assets and liabilities of the Company’s foreign operations, where the functional currency is not the U.S. dollar (reporting currency), are translated from the foreign currency into U.S. dollars at period-end rates, while income and expenses are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive loss within stockholders’ equity.

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ALLOWANCE FOR DOUBTFUL ACCOUNTS

9 Months Ended

Oct. 31, 2023

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS

NOTE 2 – ALLOWANCE FOR DOUBTFUL ACCOUNTS

The Company’s financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. The Company considers its trade receivables to consist of two portfolio segments: wholesale and retail trade receivables. Wholesale trade receivables result from credit the Company has extended to its wholesale customers based on pre-defined criteria and are generally due within 30 to 60 days. Retail trade receivables primarily relate to amounts due from third-party credit card processors for the settlement of debit and credit card transactions and are typically collected within 3 to 5 days.

The Company’s accounts receivable and allowance for doubtful accounts as of October 31, 2023, October 31, 2022 and January 31, 2023 were:

	October 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	880,827	$	806	$	881,633
Allowance for doubtful accounts		(18,349)		(63)		(18,412)
Accounts receivable, net	$	862,478	$	743	$	863,221
	October 31, 2022
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	898,383	$	1,010	$	899,393
Allowance for doubtful accounts		(18,192)		(66)		(18,258)
Accounts receivable, net	$	880,191	$	944	$	881,135
	January 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	692,033	$	1,227	$	693,260
Allowance for doubtful accounts		(18,237)		(60)		(18,297)
Accounts receivable, net	$	673,796	$	1,167	$	674,963

The allowance for doubtful accounts for wholesale trade receivables is estimated based on several factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (such as in the case of bankruptcy filings (including potential bankruptcy filings), extensive delay in payment or substantial downgrading by credit rating agencies), a specific reserve for bad debt is recorded against amounts due from that customer to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other wholesale customers, an allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the end of the reporting period for financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. The Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

The allowance for doubtful accounts for retail trade receivables is estimated at the credit card chargeback rate applied to the previous 90 days of credit card sales. In addition, the Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

The Company had the following activity in its allowance for credit losses:

	Wholesale		Retail		Total
	(In thousands)
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)
Provision for credit losses, net		(115)		(3)		(118)
Accounts written off as uncollectible		3		—		3
Balance as of October 31, 2023	$	(18,349)	$	(63)	$	(18,412)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(935)		18		(917)
Accounts written off as uncollectible		50		—		50
Balance as of October 31, 2022	$	(18,192)	$	(66)	$	(18,258)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(1,002)		24		(978)
Accounts written off as uncollectible		72		—		72
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)

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INVENTORIES

9 Months Ended

Oct. 31, 2023

INVENTORIES [Abstract]

INVENTORIES

NOTE 3 – INVENTORIES

Wholesale inventories, which comprise a significant portion of the Company’s inventory, are stated at the lower of cost (determined by the first-in, first-out method) or net realizable value. Retail and Vilebrequin inventories are stated at the lower of cost (determined by the weighted average method) or net realizable value. Substantially all of the Company’s inventories consist of finished goods.

The inventory return asset, which consists of the amount of goods that are anticipated to be returned by customers, was $15.6 million, $17.1 million and $19.2 million as of October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Inventory held on consignment by the Company’s customers totaled $7.9 million, $6.5 million and $6.6 million at October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The Company reflects this inventory on its condensed consolidated balance sheets.

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Fair Value of Financial Instruments

9 Months Ended

Oct. 31, 2023

Fair Value of Financial Instruments [Abstract]

Fair Value of Financial Instruments

NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Generally Accepted Accounting Principles establish a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

● Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable.

● Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement.

The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments:

		Carrying Value						Fair Value
		October 31,		October 31,		January 31,		October 31,		October 31,		January 31,
Financial Instrument	Level	2023		2022		2023		2023		2022		2023
		(In thousands)
Secured Notes	1	$	400,000	$	400,000	$	400,000	$	396,340	$	379,000	$	380,000
Revolving credit facility	2		—		340,235		80,087		—		340,235		80,087
Note issued to LVMH	3		49,787		119,415		121,202		49,350		118,173		119,426
Unsecured loans	2		9,097		10,446		10,866		9,097		10,446		10,866
Overdraft facilities	2		1,872		3,664		3,657		1,872		3,664		3,657
Foreign credit facility	2		4,161		10,416		7,792		4,161		10,416		7,792

The Company’s debt instruments are recorded at their carrying values in its condensed consolidated balance sheets, which may differ from their respective fair values. The fair value of the Company’s secured notes is based on their current market price as of October 31, 2023. The carrying amount of the Company’s variable rate debt approximates the fair value, as interest rates change with market rates. Furthermore, the carrying value of all other financial instruments potentially subject to valuation risk (principally consisting of cash, accounts receivable and accounts payable) also approximates fair value due to the short-term nature of these accounts.

The 2% note in the original principal amount of $125 million (the “LVMH Note”) issued to LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) in connection with the acquisition of DKNY and Donna Karan was recorded on the balance sheet at a discount of $40.0 million in accordance with ASC 820 – Fair Value Measurements (“ASC 820”). For purposes of this fair value disclosure, the Company based its fair value estimate for the LVMH Note on the initial fair value as determined at the date of the acquisition of DKNY and Donna Karan and records the amortization using the effective interest method over the term of the LVMH Note. The Company repaid $75.0 million of the principal amount of the LVMH Note on June 1, 2023 and the remaining $50.0 million of such principal amount on December 1, 2023.

The fair value of the LVMH Note was considered a Level 3 valuation in the fair value hierarchy.

Non-Financial Assets and Liabilities

The Company’s non-financial assets that are measured at fair value on a nonrecurring basis include long-lived assets, which consist primarily of property and equipment and operating lease assets. The Company reviews these assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be fully recoverable. For assets that are not recoverable, an impairment loss is recognized equal to the difference between the carrying amount of the asset or asset group and its estimated fair value. For operating lease assets, the Company determines the fair value of the assets by discounting the estimated market rental rates over the remaining term of the lease. These fair value measurements are considered level 3 measurements in the fair value hierarchy. During fiscal 2023, the Company recorded a $2.7 million impairment charge related to leasehold improvements, furniture and fixtures and operating lease assets at certain DKNY, Karl Lagerfeld Paris and Vilebrequin stores as a result of the performance of these stores.

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LEASES

9 Months Ended

Oct. 31, 2023

LEASES [Abstract]

LEASES

NOTE 5 – LEASES

The Company leases retail stores, warehouses, distribution centers, office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

Most leases are for a term of one to ten years.  Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years.  Several of the Company’s retail store leases include an option to terminate the lease based on failure to achieve a specified sales volume. The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor.

Certain of the Company’s lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.

The Company’s operating lease assets and liabilities as of October 31, 2023, October 31, 2022 and January 31, 2023 consist of the following:

Leases	Classification	October 31, 2023		October 31, 2022		January 31, 2023
		(In thousands)
Assets
Operating	Operating lease assets	$	221,474	$	216,663	$	239,665
Liabilities
Current operating	Current operating lease liabilities	$	55,897	$	50,645	$	52,917
Noncurrent operating	Noncurrent operating lease liabilities		183,522		185,171		204,974
Total lease liabilities		$	239,419	$	235,816	$	257,891

The Company recorded lease costs of $18.1 million and $55.1 million during the three and nine months ended October 31, 2023. The Company recorded lease costs of $17.1 million and $46.1 million during the three and nine months ended October 31, 2022. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $6.7 million and $18.1 million for the three and nine months ended October 31, 2023. The Company recorded variable lease costs and short-term lease costs of $6.1 million and $16.7 million for the three and nine months ended October 31, 2022. Short-term lease costs are immaterial.

As of October 31, 2023, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2028 and thereafter are as follows:

Year Ending January 31,	Amount
	(In thousands)
2024	$	17,459
2025		72,772
2026		59,813
2027		46,756
2028		37,635
After 2028		60,142
Total lease payments	$	294,577
Less: Interest		55,158
Present value of lease liabilities	$	239,419

As of October 31, 2023, there are no material leases that are legally binding but have not yet commenced.

As of October 31, 2023, the weighted average remaining lease term related to operating leases is 5.0 years. The weighted average discount rate related to operating leases is 8.5%.

Cash paid for amounts included in the measurement of operating lease liabilities was $53.2 million and $47.6 million during the nine months ended October 31, 2023 and 2022, respectively. Right-of-use assets obtained in exchange for lease obligations were $26.8 million and $96.7 million during the nine months ended October 31, 2023 and 2022, respectively.

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KARL LAGERFELD ACQUISITION

9 Months Ended

Oct. 31, 2023

KARL LAGERFELD ACQUISITION [Abstract]

KARL LAGERFELD ACQUISITION

NOTE 6 – KARL LAGERFELD ACQUISITION

On April 29, 2022, the Company entered into a share purchase agreement (the “Purchase Agreement”) pursuant to which the Company agreed to acquire the remaining 81% interest in KLH that it did not already own, for an aggregate consideration of €193.4 million (approximately $207.6 million) in cash, after taking into account certain adjustments. The acquisition closed on May 31, 2022. The Company funded the purchase price from cash on hand.

On May 31, 2022, the effective date of the acquisition, the Company’s previously held 19% investment in KLH and 49% investment in KLNA were remeasured at fair value using a market approach based on the purchase price of the acquisition and a discount for lack of control related to the Company’s previously held minority investment in KLH. As a result of this remeasurement, a non-cash gain of $27.1 million was recorded as of the effective date of the acquisition.

The addition of Karl Lagerfeld to the Company’s portfolio of owned brands advances several of its strategic initiatives, including increasing its direct ownership of brands and their licensing opportunities and further diversifying its global presence. This acquisition offers additional opportunities to expand the Company’s international growth by further developing its European-based brands, which also include Vilebrequin and Sonia Rykiel. The Company believes that Karl Lagerfeld’s existing digital channel presence provides an opportunity for the Company to enhance its omni-channel business and further accelerate its digital initiatives.

Purchase Price Consideration

The purchase price of $207.6 million, after taking into account certain adjustments, was paid from cash on hand. The purchase price has been revised to include adjustments in accordance with the Purchase Agreement.

The initial purchase price and the valuation of the prior minority ownership for the acquisition of KLH is as follows (in thousands):

Cash disbursed for the acquisition of KLH	$	168,592
Plus: cash acquired		38,499
Plus: aggregate adjustments to purchase price		516
Initial purchase price		207,607
Plus: fair value of prior minority ownership		102,858
Total consideration	$	310,465

Allocation of the Purchase Price Consideration

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:

(In thousands)
Cash and cash equivalents	$	38,499
Accounts receivable, net		28,449
Inventories		33,489
Prepaid income taxes		1,100
Prepaid expenses and other current assets		3,347
Property, plant and equipment, net		11,545
Operating lease assets		55,753
Goodwill		84,336
Trademarks		178,823
Customer relationships		4,294
Deferred income taxes		5,131
Other long-term assets		2,237
Total assets acquired	$	447,003
Notes payable		3,606
Accounts payable		9,175
Accrued expenses		15,261
Operating lease liabilities		58,942
Income taxes payable		2,099
Deferred income taxes		42,222
Other long-term liabilities		5,233
Total liabilities assumed	$	136,538
Total fair value of acquisition consideration	$	310,465

During the year ended January 31, 2023, the Company recorded adjustments to the fair values of assets acquired and liabilities assumed at the date of acquisition based on additional information obtained. The Company recorded an

additional $36.9 million in both total assets and total liabilities, primarily related to goodwill, deferred tax assets and liabilities, operating lease assets, inventories, accounts receivable, net, accounts payable, customer relationships and operating lease liabilities.

The Company recognized goodwill of approximately $84.3 million in connection with the acquisition of KLH. The goodwill was assigned to the Company’s wholesale operations reporting unit. In fiscal 2023, as a result of the Company’s annual impairment test, the Company recorded a $347.2 million non-cash impairment charge to fully impair the carrying value of its goodwill. This charge included all of the $84.3 million of goodwill previously recognized in connection with the acquisition of KLH. The Company made an election under Internal Revenue Code Section 338(g) to amortize the total goodwill and intangible assets over a 15 year period for income tax purposes in the United States.

The fair values assigned to identifiable intangible assets acquired were based on assumptions and estimates made by management using unobservable inputs reflecting the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability based on the best information available. The fair values of the trademarks were determined using the relief from royalty method and the fair value of the customer relationships were determined using an income approach. The Company classifies these intangibles as Level 3 fair value measurements. Identifiable intangible assets acquired include the following (in thousands):

			Weighted Average
	Fair Value		Amortization Period
Trademarks	$	178,823		—
Customer relationships		4,294		8
	$	183,117		—

The Company recognized approximately $5.6 million of acquisition related costs that were expensed in fiscal 2023 and fiscal 2022. The fiscal 2023 and fiscal 2022 acquisition and integration costs were recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income for the fiscal years ended January 31, 2023 and 2022, respectively.

The fair value of assets acquired and liabilities assumed were finalized as of May 31, 2023.

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Net Income per Common Share

9 Months Ended

Oct. 31, 2023

Net Income per Common Share

Net Income per Common Share

NOTE 7 – NET INCOME PER COMMON SHARE

Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards outstanding during the period. Approximately 8,200 and 59,200 shares of common stock have been excluded from the diluted net income per share calculation for the three and nine months ended October 31, 2023. Approximately 310,600 and 258,600 shares of common stock have been excluded from the diluted net income per share calculation for the three and nine months ended October 31, 2022. All share-based payments outstanding that vest based on the achievement of performance conditions, and for which the respective performance conditions have not been achieved, have been excluded from the diluted per share calculation.

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(In thousands, except share and per share amounts)
Net income attributable to G-III Apparel Group, Ltd.	$	127,640	$	61,103	$	147,314	$	128,056
Basic net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Basic net income per share	$	2.79	$	1.29	$	3.21	$	2.68
Diluted net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Dilutive restricted stock unit awards and stock options		837		987		1,088		1,034
Diluted common shares		46,560		48,475		46,992		48,866
Diluted net income per share	$	2.74	$	1.26	$	3.13	$	2.62

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NOTES PAYABLE

9 Months Ended

Oct. 31, 2023

NOTES PAYABLE [Abstract]

NOTES PAYABLE

NOTE 8 – NOTES PAYABLE

Long-term debt consists of the following:

	October 31, 2023		October 31, 2022		January 31, 2023
	(In thousands)
Secured Notes	$	400,000	$	400,000	$	400,000
Revolving credit facility		—		340,235		80,087
LVMH Note		50,000		125,000		125,000
Unsecured loans		9,097		10,446		10,866
Overdraft facilities		1,872		3,664		3,657
Foreign credit facility		4,161		10,416		7,792
Subtotal		465,130		889,761		627,402
Less: Net debt issuance costs (1)		(2,972)		(4,671)		(4,246)
Debt discount		(213)		(5,585)		(3,798)
Current portion of long-term debt		(59,099)		(91,613)		(135,518)
Total	$	402,846	$	787,892	$	483,840

(1) Does not include debt issuance costs, net of amortization, totaling $2.8 million, $4.4 million and $4.0 million as of October 31, 2023, October 31, 2022 and January 31, 2023, respectively, related to the revolving credit facility. These debt issuance costs have been deferred and are classified in assets in the accompanying condensed consolidated balance sheets in accordance with ASC 835.

Senior Secured Notes

In August 2020, the Company completed a private debt offering of $400 million aggregate principal amount of its 7.875% Senior Secured Notes due August 2025 (the “Notes”). The terms of the Notes are governed by an indenture (the “Indenture”), among the Company, the guarantors party thereto and U.S. Bank, National Association, as trustee and collateral agent (the “Collateral Agent”). The net proceeds of the Notes were used (i) to repay the $300 million that was outstanding under the Company’s prior term loan facility due 2022 (the “Term Loan”), (ii) to pay related fees and expenses and (iii) for general corporate purposes.

The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year.

The Notes are unconditionally guaranteed on a senior-priority secured basis by the Company’s current and future wholly-owned domestic subsidiaries that guarantee any of the Company’s credit facilities, including the Company’s ABL facility (the “ABL Facility”) pursuant to the ABL Credit Agreement, or certain future capital markets indebtedness of the Company or the guarantors.

The Notes and the related guarantees are secured by (i) first priority liens on the Company’s Cash Flow Priority Collateral (as defined in the Indenture), and (ii) a second-priority lien on the Company’s ABL Priority Collateral (as defined in the Indenture), in each case subject to permitted liens described in the Indenture.

In connection with the issuance of the Notes and execution of the Indenture, the Company and the Guarantors entered into a pledge and security agreement (the “Pledge and Security Agreement”), among the Company, the Guarantors and the Collateral Agent.

The Notes are subject to the terms of the intercreditor agreement which governs the relative rights of the secured parties in respect of the ABL Facility and the Notes (the “Intercreditor Agreement”). The Intercreditor Agreement restricts the actions permitted to be taken by the Collateral Agent with respect to the Collateral on behalf of the holders of the Notes.

The Company may redeem some or all of the Notes at any time and from time to time at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date.

If the Company experiences a Change of Control (as defined in the Indenture), the Company is required to offer to repurchase the Notes at 101% of the principal amount of such Notes plus accrued and unpaid interest, if any, to, but excluding, the date of repurchase.

The Indenture contains covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness, pay dividends or make other restricted payments, make certain investments, incur restrictions on the ability of the Company’s restricted subsidiaries that are not guarantors to pay dividends or make certain other payments, create or incur certain liens, sell assets and subsidiary stock, impair the security interests, transfer all or substantially all of the Company’s assets or enter into merger or consolidation transactions, and enter into transactions with affiliates. The Indenture provides for customary events of default which include (subject in certain cases to customary grace and cure periods), among others, nonpayment of principal or interest, breach of other agreements in the Indenture, failure to pay certain other indebtedness, failure of certain guarantees to be enforceable, failure to perfect certain collateral securing the Notes, failure to pay certain final judgments, and certain events of bankruptcy or insolvency.

The Company incurred debt issuance costs totaling $8.5 million related to the Notes. In accordance with ASC 835, the debt issuance costs have been deferred and are presented as a contra-liability, offsetting the outstanding balance of the Notes, and are amortized over the remaining life of the Notes.

Second Amended and Restated ABL Credit Agreement

In August 2020, the Company’s subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, AM Retail Group, Inc. and The Donna Karan Company Store LLC (collectively, the “Borrowers”), entered into the second amended and restated credit agreement (the “ABL Credit Agreement”) with the Lenders named therein and with JPMorgan Chase Bank, N.A., as Administrative Agent. The ABL Credit Agreement is a five year senior secured credit facility that provides for borrowings in the aggregate principal amount of up to $650 million. The Company and certain of its subsidiaries (the “Guarantors”), are Loan Guarantors under the ABL Credit Agreement.

The ABL Credit Agreement refinanced, amended and restated the Amended Credit Agreement, dated as of December 1, 2016 (as amended, supplemented or otherwise modified from time to time prior to August 7, 2020, the “Prior Credit Agreement”). The Prior Credit Agreement provided for borrowings of up to $650 million. The ABL Credit Agreement extended the maturity date of this facility from December 2021 to August 2025.

Amounts available under the ABL Credit Agreement are subject to borrowing base formulas and overadvances as specified in the ABL Credit Agreement. Borrowings originally bore interest, at the Borrowers’ option, at LIBOR plus a margin of 1.75% to 2.25% or an alternate base rate margin of 0.75% to 1.25% (defined as the greatest of (i) the “prime rate” of JPMorgan Chase Bank, N.A. from time to time, (ii) the federal funds rate plus 0.5% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 1.00%, with the applicable margin determined based on Borrowers’ availability under the ABL Credit Agreement. In April 2023, the Company amended the ABL Credit Agreement to replace LIBOR with the Adjusted Term Secured Overnight Financing Rate (“SOFR”) as a successor rate. All other material terms and conditions of the ABL Credit Agreement were unchanged. Borrowings under the amended ABL Credit Agreement now bear interest, at the Borrower’s option, at the alternate base rate (defined as, for a given day, the greatest of (i) the “prime rate” in effect on such day, (ii) the NYFRB Rate (as defined in the amendment) in effect on such day plus 0.5% and (iii) the Adjusted Term SOFR (defined as an interest rate per annum equal to the Term SOFR for such interest period plus 0.10%) for a one-month interest period as published two business days prior to such day plus 1%) plus an applicable spread or the Adjusted Term SOFR Rate plus an applicable spread. The Company applied certain provisions and practical expedients of ASC 848 – Reference Rate Reform related to the transition from LIBOR to SOFR.

The ABL Credit Agreement is secured by specified assets of the Borrowers and the Guarantors. In addition to paying interest on any outstanding borrowings under the ABL Credit Agreement, the Company is required to pay a commitment fee to the lenders under the credit agreement with respect to the unutilized commitments. The commitment fee accrues at a tiered rate equal to 0.50% per annum on the average daily amount of the available commitments when the average usage is less than 50% of the total available commitments and decreases to 0.35% per annum on the average daily amount of the available commitments when the average usage is greater than or equal to 50% of the total available commitments.

The revolving credit facility contains covenants that, among other things, restrict the Company’s ability to, subject to specified exceptions, incur additional debt; incur liens; sell or dispose of certain assets; merge with other companies; liquidate or dissolve the Company; acquire other companies; make loans, advances, or guarantees; and make certain investments. In certain circumstances, the revolving credit facility also requires the Company to maintain a fixed charge coverage ratio, as defined in the agreement, not less than 1.00 to 1.00 for each period of twelve consecutive fiscal months of the Company. As of October 31, 2023, the Company was in compliance with these covenants.

As of October 31, 2023, the Company had no borrowings outstanding under the ABL Credit Agreement. The ABL credit agreement also includes amounts available for letters of credit. As of October 31, 2023, there were outstanding trade and standby letters of credit amounting to $2.0 million and $2.9 million, respectively.

At the date of the refinancing of the Prior Credit Agreement, the Company had $3.3 million of unamortized debt issuance costs remaining from the Prior Credit Agreement. The Company extinguished and charged to interest expense $0.4 million of the prior debt issuance costs and incurred new debt issuance costs totaling $5.1 million related to the ABL Credit Agreement. The Company has recorded $8.0 million of debt issuance costs related to the ABL Credit Agreement. As permitted under ASC 835, the debt issuance costs have been deferred and are presented as an asset which is amortized ratably over the term of the ABL Credit Agreement.

LVMH Note

As a portion of the consideration for the acquisition of Donna Karan International (“DKI”), the Company issued to LVMH a junior lien secured promissory note in the principal amount of $125.0 million that bears interest at the rate of 2% per year. $75.0 million of the principal amount of the LVMH Note was repaid on June 1, 2023 and the remaining $50.0 million of such principal amount was paid on December 1, 2023. The LVMH Note is classified in current portion of notes payable in the Company’s condensed consolidated balance sheets as of October 31, 2023 and January 31, 2023. $75.0 million of the LVMH Note is classified in current portion of notes payable in the Company’s condensed consolidated balance sheet as of October 31, 2022.

ASC 820 requires the LVMH Note to be recorded at fair value at issuance. As a result, the Company recorded a $40.0 million debt discount upon issuance of the LVMH Note. This discount is being amortized as interest expense using the effective interest method over the term of the LVMH Note.

Unsecured Loans

Several of the Company’s foreign entities borrow funds under various unsecured loans of which a portion is to provide funding for operations in the normal course of business while other loans are European state backed loans as part of COVID-19 relief programs. In the aggregate, the Company is currently required to make quarterly installment payments of principal in the amount of €0.6 million under these unsecured loans. Interest on the outstanding principal amount of the unsecured loans accrues at a fixed rate equal to 0% to 5.0% per annum, payable on either a quarterly or monthly basis. As of October 31, 2023, the Company had an aggregate outstanding balance of €8.6 million ($9.1 million) under these unsecured loans.

Overdraft Facilities

During fiscal 2021, T.R.B International SA (“TRB”) entered into several overdraft facilities that allow for applicable bank accounts to be in a negative position up to a certain maximum overdraft. TRB entered into an uncommitted overdraft facility with HSBC Bank allowing for a maximum overdraft of €5 million. Interest on drawn balances accrues at a rate equal to the Euro Interbank Offered Rate (“EURIBOR”) plus a margin of 1.75% per annum, payable quarterly. The facility may be cancelled at any time by TRB or HSBC Bank. As part of a COVID-19 relief program, TRB and its subsidiaries have also entered into several state backed overdraft facilities with UBS Bank in Switzerland for an aggregate of CHF 4.7 million at varying interest rates of 0% to 0.5%. As of October 31, 2023, TRB had an aggregate of €1.8 million ($1.9 million) drawn under these facilities.

Foreign Credit Facility

KLH has a credit agreement with ABN AMRO Bank N.V. with a credit limit of €15.0 million which is secured by specified assets of KLH. Borrowings bear interest at the EURIBOR plus a margin of 1.7%. As of October 31, 2023, KLH had €3.9 million ($4.2 million) of borrowings outstanding under this credit facility.

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REVENUE RECOGNITION

9 Months Ended

Oct. 31, 2023

REVENUE RECOGNITION [Abstract]

REVENUE RECOGNITION

NOTE 9 – REVENUE RECOGNITION

Disaggregation of Revenue

In accordance with ASC 606 – Revenue from Contracts with Customers, the Company discloses its revenues by segment. Each segment presents its own characteristics with respect to the timing of revenue recognition and the type of customer. In addition, disaggregating revenues using a segment basis is consistent with how the Company’s Chief Operating Decision Maker manages the Company. The Company has identified the wholesale operations segment and the retail operations segment as distinct sources of revenue.

Wholesale Operations Segment. Wholesale revenues include sales of products to retailers under owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital outlets. Wholesale revenues from sales of products are recognized when control transfers to the customer. The Company considers control to have been transferred when the Company has transferred physical possession of the product, the Company has a right to payment for the product, the customer has legal title to the product and the customer has the significant risks and rewards of the product. Wholesale revenues are adjusted by variable consideration arising from implicit or explicit obligations. Wholesale revenues also include revenues from license agreements related to the DKNY, Donna Karan, Karl Lagerfeld, G.H. Bass, Andrew Marc, Vilebrequin and Sonia Rykiel trademarks owned by the Company.

Retail Operations Segment. Retail store revenues are generated by direct sales to consumers through Company-operated stores and product sales through the Company’s digital channels for the DKNY, Donna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather businesses. Retail stores primarily consist of DKNY and Karl Lagerfeld Paris retail stores, substantially all of which are operated as outlet stores. Retail operations segment revenues are recognized at the point of sale when the customer takes possession of the goods and tenders payment. Digital revenues primarily consist of sales to consumers through the Company’s digital platforms. Digital revenue is recognized when a customer takes possession of the goods. Retail sales are recorded net of applicable sales tax.

Contract Liabilities

The Company’s contract liabilities, which are recorded within accrued expenses in the accompanying condensed consolidated balance sheets, primarily consist of gift card liabilities and advance payments from licensees. In some of its retail concepts, the Company also offers a limited loyalty program where customers accumulate points redeemable for cash discount certificates that expire 90 days after issuance. Total contract liabilities were $3.3 million, $3.3 million and $5.1 million at October 31, 2023, October 31, 2022 and January 31, 2023, respectively. The Company recognized $3.1 million in revenue for the three months ended October 31, 2023 related to contract liabilities that existed at July 31, 2023. The Company recognized $4.3 million in revenue for the nine months ended October 31, 2023 related to contract liabilities that existed at January 31, 2023. There were no contract assets recorded as of October 31, 2023, October 31, 2022 and January 31, 2023. Substantially all of the advance payments from licensees as of October 31, 2023 are expected to be recognized as revenue within the next twelve months.

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SEGMENTS

9 Months Ended

Oct. 31, 2023

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 to retailers under owned, licensed and private label brands, as well as sales related to the Vilebrequin and Karl Lagerfeld businesses, including from retail stores operated by Vilebrequin and Karl Lagerfeld, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital outlets. Wholesale revenues also include revenues from license agreements related to the DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, G.H. Bass, Andrew Marc and Sonia Rykiel trademarks owned by the Company. 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 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 and nine month periods indicated below:

	Three Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,054,303	$	32,711	$	(19,904)	$	1,067,110
Cost of goods sold		636,961		16,640		(19,904)		633,697
Gross profit		417,342		16,071		—		433,413
Selling, general and administrative expenses		213,263		23,045		—		236,308
Depreciation and amortization		5,475		1,120		—		6,595
Asset impairments and gain on lease terminations		222		—		—		222
Operating profit (loss)	$	198,382	$	(8,094)	$	—	$	190,288

	Three Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,069,574	$	28,762	$	(20,037)	$	1,078,299
Cost of goods sold		740,734		12,975		(20,037)		733,672
Gross profit		328,840		15,787		—		344,627
Selling, general and administrative expenses		216,916		22,977		—		239,893
Depreciation and amortization		6,224		1,046		—		7,270
Asset impairment, net of gain on lease terminations		250		—		—		250
Operating profit (loss)	$	105,450	$	(8,236)	$	—	$	97,214

	Nine Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,280,391	$	97,268	$	(44,199)	$	2,333,460
Cost of goods sold		1,369,315		48,478		(44,199)		1,373,594
Gross profit		911,076		48,790		—		959,866
Selling, general and administrative expenses		633,841		69,635		—		703,476
Depreciation and amortization		16,247		2,883		—		19,130
Asset impairment, net of gain on lease terminations		222		—		—		222
Operating profit (loss)	$	260,766	$	(23,728)	$	—	$	237,038

	Nine Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,338,435	$	87,758	$	(53,893)	$	2,372,300
Cost of goods sold		1,564,595		42,006		(53,893)		1,552,708
Gross profit		773,840		45,752		—		819,592
Selling, general and administrative expenses		548,411		67,940		—		616,351
Depreciation and amortization		17,304		2,717		—		20,021
Asset impairment, net of gain on lease terminations		250		(38)		—		212
Operating profit (loss)	$	207,875	$	(24,867)	$	—	$	183,008

(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				Nine Months Ended
	October 31, 2023		October 31, 2022		October 31, 2023		October 31, 2022
	(In thousands)
Licensed brands	$	625,231	$	669,408	$	1,261,894	$	1,403,142
Proprietary brands		429,072		400,166		1,018,497		935,293
Wholesale net sales(1)	$	1,054,303	$	1,069,574	$	2,280,391	$	2,338,435
Licensed brands	$	—	$	—	$	—	$	—
Proprietary brands		32,711		28,762		97,268		87,758
Retail net sales	$	32,711	$	28,762	$	97,268	$	87,758

(1) As of May 31, 2022, the Company acquired the remaining interests in KLH (Karl Lagerfeld branded product) that it did not already own. Net sales of Karl Lagerfeld product were included in licensed brands net sales of the wholesale operations segment through May 31, 2022. Subsequent to May 31, 2022, net sales of Karl Lagerfeld product are included in proprietary brands net sales of the wholesale operations segment.

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STOCKHOLDERS' EQUITY

9 Months Ended

Oct. 31, 2023

STOCKHOLDERS' EQUITY, [Abstract]

STOCKHOLDERS' EQUITY

NOTE 11 – STOCKHOLDERS’ EQUITY

For the three months ended October 31, 2023, the Company issued no shares of common stock and utilized 4,354 shares of treasury stock in connection with the vesting of equity awards. For the three months ended October 31, 2022, the Company issued no shares of common stock and utilized 2,366 shares of treasury stock in connection with the vesting of equity awards. For the nine months ended October 31, 2023, the Company issued no shares of common stock and utilized 608,325 shares of treasury stock in connection with the vesting of equity awards. For the nine months ended October 31, 2022, the Company issued no shares of common stock and utilized 385,485 shares of treasury stock in connection with the vesting of equity awards.

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Canadian Customs Duty Examination

9 Months Ended

Oct. 31, 2023

Canadian Customs Duty Examination [Abstract]

Canadian Customs Duty Examination

NOTE 12 – CANADIAN CUSTOMS DUTY EXAMINATION

In accordance with a favorable ruling by the Canadian International Trade Tribunal, in fiscal 2023 and fiscal 2024, G-III Canada received refunds from the Canada Border Service Agency (“CBSA”) in the aggregate amount of CAD$2.7 million ($2.0 million), including interest and net of a dutiable design assist, for amounts paid by G-III Canada to the CBSA between February 1, 2014 and January 31, 2018. G-III Canada has filed adjustment requests with the CBSA for the period from February 1, 2018 to January 31, 2022 to amend declared dutiable values. These amendments are expected to result in an additional refund of duty and interest, net of refunds already received, from the CBSA of approximately CAD$12.4 million ($8.9 million) plus related interest. These amounts are recorded within other assets, net in the condensed consolidated balance sheets.

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Recent Adopted and Issued Accounting Pronouncements

9 Months Ended

Oct. 31, 2023

Recent Adopted and Issued Accounting Pronouncements [Abstract]

Recent Adopted and Issued Accounting Pronouncements

NOTE 13 – RECENT ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS

Recently Adopted Accounting Guidance

There was no accounting guidance adopted during the three months ended October 31, 2023.

Issued Accounting Guidance Being Evaluated for Adoption

The Company has reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a significant impact to the consolidated financial statements.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Oct. 31, 2023

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 14 – RELATED PARTY TRANSACTION

In June 2023, the Company entered into a stock sale and purchase agreement (the “Agreement”) with Sammy Aaron, the Company’s Vice Chairman and President and a Director of the Company. Pursuant to the Agreement, the Company purchased from Mr. Aaron 208,943 shares of its common stock for $4.1 million at a price equal to the closing price of the Company’s shares on the date of the Agreement.

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EMPLOYMENT AGREEMENTS

9 Months Ended

Oct. 31, 2023

EMPLOYMENT AGREEMENTS [Abstract]

EMPLOYMENT AGREEMENTS

NOTE 15 – EMPLOYMENT AGREEMENTS

On August 9, 2023, the Company entered into a new employment agreement with Morris Goldfarb, its Chairman and Chief Executive Officer. The employment agreement included provisions, among others, that (i) changed the structure of Mr. Goldfarb’s annual cash incentive that are designed to align with current market practice and reduce the size of the annual cash incentive, (ii) changed the mix of annual cash compensation and annual equity grants in a manner that increases the weighting of equity compared to cash and encourages long-term performance and shareholder value creation, and (iii) in recognition of the significant reduction in the annual cash incentive agreed to by Mr. Goldfarb, provide for a grant of 700,000 performance share units (PSUs) that may be earned over three years if certain stock price and relative total shareholder return targets are achieved.

On August 29, 2023, the Company entered into a new employment agreement with Sammy Aaron, its Vice Chairman and President. The employment agreement included provisions, among others, that (i) changed to the structure of Mr. Aaron’s annual cash incentive that are designed to align with current market practice and to reduce the size of the annual cash incentive, (ii) changed the mix of annual cash compensation and annual equity grants in a manner that increases the weighting of equity compared to cash and encourages long-term performance and shareholder value creation and (iii) in recognition of the significant reduction in the annual cash incentive agreed to by Mr. Aaron, provides for a special bonus of $2,000,000 that was paid shortly after the new employment agreement was entered into and a retention bonus of $1,000,000 payable if, as of January 31, 2025, the Company has not terminated the employment agreement for “cause” or he has not terminated the employment agreement without “cause” or without “Good Reason” (each of the terms as defined in the employment agreement).

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Recent Adopted and Issued Accounting Pronouncements (Policies)

9 Months Ended

Oct. 31, 2023

Recent Adopted and Issued Accounting Pronouncements [Abstract]

Effects of Recently Adopted and Issued Accounting Pronouncements

Recently Adopted Accounting Guidance

There was no accounting guidance adopted during the three months ended October 31, 2023.

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables)

9 Months Ended

Oct. 31, 2023

ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts Receivable and Allowance for Doubtful Accounts

The Company’s accounts receivable and allowance for doubtful accounts as of October 31, 2023, October 31, 2022 and January 31, 2023 were:

	October 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	880,827	$	806	$	881,633
Allowance for doubtful accounts		(18,349)		(63)		(18,412)
Accounts receivable, net	$	862,478	$	743	$	863,221
	October 31, 2022
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	898,383	$	1,010	$	899,393
Allowance for doubtful accounts		(18,192)		(66)		(18,258)
Accounts receivable, net	$	880,191	$	944	$	881,135
	January 31, 2023
	Wholesale		Retail		Total
	(In thousands)
Accounts receivable, gross	$	692,033	$	1,227	$	693,260
Allowance for doubtful accounts		(18,237)		(60)		(18,297)
Accounts receivable, net	$	673,796	$	1,167	$	674,963

Activity in Allowance for Credit Losses

The Company had the following activity in its allowance for credit losses:

	Wholesale		Retail		Total
	(In thousands)
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)
Provision for credit losses, net		(115)		(3)		(118)
Accounts written off as uncollectible		3		—		3
Balance as of October 31, 2023	$	(18,349)	$	(63)	$	(18,412)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(935)		18		(917)
Accounts written off as uncollectible		50		—		50
Balance as of October 31, 2022	$	(18,192)	$	(66)	$	(18,258)
Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(1,002)		24		(978)
Accounts written off as uncollectible		72		—		72
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)

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Fair Value of Financial Instruments (Tables)

9 Months Ended

Oct. 31, 2023

Fair Value of Financial Instruments [Abstract]

Schedule of carrying values and estimated fair values of debt instruments

The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments:

		Carrying Value						Fair Value
		October 31,		October 31,		January 31,		October 31,		October 31,		January 31,
Financial Instrument	Level	2023		2022		2023		2023		2022		2023
		(In thousands)
Secured Notes	1	$	400,000	$	400,000	$	400,000	$	396,340	$	379,000	$	380,000
Revolving credit facility	2		—		340,235		80,087		—		340,235		80,087
Note issued to LVMH	3		49,787		119,415		121,202		49,350		118,173		119,426
Unsecured loans	2		9,097		10,446		10,866		9,097		10,446		10,866
Overdraft facilities	2		1,872		3,664		3,657		1,872		3,664		3,657
Foreign credit facility	2		4,161		10,416		7,792		4,161		10,416		7,792

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LEASES (Tables)

9 Months Ended

Oct. 31, 2023

LEASES [Abstract]

Schedule of lease assets and liabilities

The Company’s operating lease assets and liabilities as of October 31, 2023, October 31, 2022 and January 31, 2023 consist of the following:

Leases	Classification	October 31, 2023		October 31, 2022		January 31, 2023
		(In thousands)
Assets
Operating	Operating lease assets	$	221,474	$	216,663	$	239,665
Liabilities
Current operating	Current operating lease liabilities	$	55,897	$	50,645	$	52,917
Noncurrent operating	Noncurrent operating lease liabilities		183,522		185,171		204,974
Total lease liabilities		$	239,419	$	235,816	$	257,891

Schedule of maturity of operating lease liabilities

As of October 31, 2023, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2028 and thereafter are as follows:

Year Ending January 31,	Amount
	(In thousands)
2024	$	17,459
2025		72,772
2026		59,813
2027		46,756
2028		37,635
After 2028		60,142
Total lease payments	$	294,577
Less: Interest		55,158
Present value of lease liabilities	$	239,419

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KARL LAGERFELD ACQUISITION (Tables)

9 Months Ended

Oct. 31, 2023

KARL LAGERFELD ACQUISITION [Abstract]

Schedule of total consideration paid for acquisition

The initial purchase price and the valuation of the prior minority ownership for the acquisition of KLH is as follows (in thousands):

Cash disbursed for the acquisition of KLH	$	168,592
Plus: cash acquired		38,499
Plus: aggregate adjustments to purchase price		516
Initial purchase price		207,607
Plus: fair value of prior minority ownership		102,858
Total consideration	$	310,465

Schedule of fair values of assets acquired and liabilities

The following table summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition:

(In thousands)
Cash and cash equivalents	$	38,499
Accounts receivable, net		28,449
Inventories		33,489
Prepaid income taxes		1,100
Prepaid expenses and other current assets		3,347
Property, plant and equipment, net		11,545
Operating lease assets		55,753
Goodwill		84,336
Trademarks		178,823
Customer relationships		4,294
Deferred income taxes		5,131
Other long-term assets		2,237
Total assets acquired	$	447,003
Notes payable		3,606
Accounts payable		9,175
Accrued expenses		15,261
Operating lease liabilities		58,942
Income taxes payable		2,099
Deferred income taxes		42,222
Other long-term liabilities		5,233
Total liabilities assumed	$	136,538
Total fair value of acquisition consideration	$	310,465

Schedule of identifiable intangible assets

			Weighted Average
	Fair Value		Amortization Period
Trademarks	$	178,823		—
Customer relationships		4,294		8
	$	183,117		—

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Net Income per Common Share (Tables)

9 Months Ended

Oct. 31, 2023

Net Income per Common Share

Schedule of reconciliation between basic and diluted net income per share

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2023		2022		2023		2022
	(In thousands, except share and per share amounts)
Net income attributable to G-III Apparel Group, Ltd.	$	127,640	$	61,103	$	147,314	$	128,056
Basic net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Basic net income per share	$	2.79	$	1.29	$	3.21	$	2.68
Diluted net income per share:
Basic common shares		45,723		47,488		45,904		47,832
Dilutive restricted stock unit awards and stock options		837		987		1,088		1,034
Diluted common shares		46,560		48,475		46,992		48,866
Diluted net income per share	$	2.74	$	1.26	$	3.13	$	2.62

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NOTES PAYABLE (Tables)

9 Months Ended

Oct. 31, 2023

NOTES PAYABLE [Abstract]

Schedule of long-term debt

Long-term debt consists of the following:

	October 31, 2023		October 31, 2022		January 31, 2023
	(In thousands)
Secured Notes	$	400,000	$	400,000	$	400,000
Revolving credit facility		—		340,235		80,087
LVMH Note		50,000		125,000		125,000
Unsecured loans		9,097		10,446		10,866
Overdraft facilities		1,872		3,664		3,657
Foreign credit facility		4,161		10,416		7,792
Subtotal		465,130		889,761		627,402
Less: Net debt issuance costs (1)		(2,972)		(4,671)		(4,246)
Debt discount		(213)		(5,585)		(3,798)
Current portion of long-term debt		(59,099)		(91,613)		(135,518)
Total	$	402,846	$	787,892	$	483,840

(1) Does not include debt issuance costs, net of amortization, totaling $2.8 million, $4.4 million and $4.0 million as of October 31, 2023, October 31, 2022 and January 31, 2023, respectively, related to the revolving credit facility. These debt issuance costs have been deferred and are classified in assets in the accompanying condensed consolidated balance sheets in accordance with ASC 835.

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SEGMENTS (Tables)

9 Months Ended

Oct. 31, 2023

SEGMENTS [Abstract]

Schedule of information regarding reportable segments

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

	Three Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,054,303	$	32,711	$	(19,904)	$	1,067,110
Cost of goods sold		636,961		16,640		(19,904)		633,697
Gross profit		417,342		16,071		—		433,413
Selling, general and administrative expenses		213,263		23,045		—		236,308
Depreciation and amortization		5,475		1,120		—		6,595
Asset impairments and gain on lease terminations		222		—		—		222
Operating profit (loss)	$	198,382	$	(8,094)	$	—	$	190,288

	Three Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	1,069,574	$	28,762	$	(20,037)	$	1,078,299
Cost of goods sold		740,734		12,975		(20,037)		733,672
Gross profit		328,840		15,787		—		344,627
Selling, general and administrative expenses		216,916		22,977		—		239,893
Depreciation and amortization		6,224		1,046		—		7,270
Asset impairment, net of gain on lease terminations		250		—		—		250
Operating profit (loss)	$	105,450	$	(8,236)	$	—	$	97,214

	Nine Months Ended October 31, 2023
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,280,391	$	97,268	$	(44,199)	$	2,333,460
Cost of goods sold		1,369,315		48,478		(44,199)		1,373,594
Gross profit		911,076		48,790		—		959,866
Selling, general and administrative expenses		633,841		69,635		—		703,476
Depreciation and amortization		16,247		2,883		—		19,130
Asset impairment, net of gain on lease terminations		222		—		—		222
Operating profit (loss)	$	260,766	$	(23,728)	$	—	$	237,038

	Nine Months Ended October 31, 2022
	Wholesale		Retail		Elimination (1)		Total
	(In thousands)
Net sales	$	2,338,435	$	87,758	$	(53,893)	$	2,372,300
Cost of goods sold		1,564,595		42,006		(53,893)		1,552,708
Gross profit		773,840		45,752		—		819,592
Selling, general and administrative expenses		548,411		67,940		—		616,351
Depreciation and amortization		17,304		2,717		—		20,021
Asset impairment, net of gain on lease terminations		250		(38)		—		212
Operating profit (loss)	$	207,875	$	(24,867)	$	—	$	183,008

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

Schedule of total net sales for each reportable segments

The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:

	Three Months Ended				Nine Months Ended
	October 31, 2023		October 31, 2022		October 31, 2023		October 31, 2022
	(In thousands)
Licensed brands	$	625,231	$	669,408	$	1,261,894	$	1,403,142
Proprietary brands		429,072		400,166		1,018,497		935,293
Wholesale net sales(1)	$	1,054,303	$	1,069,574	$	2,280,391	$	2,338,435
Licensed brands	$	—	$	—	$	—	$	—
Proprietary brands		32,711		28,762		97,268		87,758
Retail net sales	$	32,711	$	28,762	$	97,268	$	87,758

(1) As of May 31, 2022, the Company acquired the remaining interests in KLH (Karl Lagerfeld branded product) that it did not already own. Net sales of Karl Lagerfeld product were included in licensed brands net sales of the wholesale operations segment through May 31, 2022. Subsequent to May 31, 2022, net sales of Karl Lagerfeld product are included in proprietary brands net sales of the wholesale operations segment.

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Basis of Presentation - Textuals (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jul. 31, 2023	Jan. 31, 2023	Oct. 31, 2022	Jul. 31, 2022	May 31, 2022	May 30, 2022	Jan. 31, 2022
Schedule of Equity Method Investments [Line Items]
Cumulative effect of adoption of ASC	$ 1,503,220	$ 1,382,115	$ 1,385,448	$ 1,622,258	$ 1,584,001			$ 1,519,912
Retained Earnings
Schedule of Equity Method Investments [Line Items]
Cumulative effect of adoption of ASC	$ 1,131,258	$ 1,003,618	$ 983,944	$ 1,245,061	$ 1,183,958			$ 1,117,005
Fabco Holding B.V. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percent				75.00%
Karl Lagerfeld Holding B.V. ("KLH")
Schedule of Equity Method Investments [Line Items]
Ownership percent							19.00%
KL North America B.V. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percent							49.00%
Karl Lagerfeld Holding B.V. ("KLH") | KL North America B.V. [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percent							51.00%
Karl Lagerfeld Holding B.V. [Member]
Schedule of Equity Method Investments [Line Items]
Remaining percentage of interest						81.00%
Karl Lagerfeld Holding B.V. [Member] | Karl Lagerfeld Holding B.V. ("KLH")
Schedule of Equity Method Investments [Line Items]
Remaining percentage of interest						81.00%
Karl Lagerfeld Holding B.V. [Member] | Karl Lagerfeld Holding B.V. ("KLH")
Schedule of Equity Method Investments [Line Items]
Ownership percent							19.00%

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (Narrative) (Details)	9 Months Ended
	Oct. 31, 2023 segment
ALLOWANCE FOR DOUBTFUL ACCOUNTS
Number of reportable segments	2

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (Accounts Receivable and Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022	Jan. 31, 2022
Segment Reporting Information [Line Items]
Accounts receivable, gross	$ 881,633	$ 693,260	$ 899,393
Allowance for doubtful accounts	(18,412)	(18,297)	(18,258)	$ (17,391)
Accounts receivable, net	863,221	674,963	881,135
Wholesale operations
Segment Reporting Information [Line Items]
Accounts receivable, gross	880,827	692,033	898,383
Allowance for doubtful accounts	(18,349)	(18,237)	(18,192)	(17,307)
Accounts receivable, net	862,478	673,796	880,191
Retail
Segment Reporting Information [Line Items]
Accounts receivable, gross	806	1,227	1,010
Allowance for doubtful accounts	(63)	(60)	(66)	$ (84)
Accounts receivable, net	$ 743	$ 1,167	$ 944

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
Segment Reporting Information [Line Items]
Beginning balance	$ (18,297)	$ (17,391)	$ (17,391)
Provision for credit losses	(118)	(917)	(978)
Accounts written off as uncollectible	3	50	72
Ending balance	(18,412)	(18,258)	(18,297)
Wholesale operations
Segment Reporting Information [Line Items]
Beginning balance	(18,237)	(17,307)	(17,307)
Provision for credit losses	(115)	(935)	(1,002)
Accounts written off as uncollectible	3	50	72
Ending balance	(18,349)	(18,192)	(18,237)
Retail
Segment Reporting Information [Line Items]
Beginning balance	(60)	(84)	(84)
Provision for credit losses	(3)	18	24
Ending balance	$ (63)	$ (66)	$ (60)

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INVENTORIES - Textuals (Details) - USD ($) $ in Millions	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Inventory [Line Items]
Inventory held on consignment	$ 7.9	$ 6.6	$ 6.5
Prepaid Expenses and Other Current Assets
Inventory [Line Items]
Inventory return asset	$ 15.6	$ 19.2	$ 17.1

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Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Level 1 | Secured notes
Debt Instrument [Line Items]
Debt instruments, carrying value	$ 400,000	$ 400,000	$ 400,000
Debt instruments, fair value	396,340	380,000	379,000
Level 2 | Revolving credit facility
Debt Instrument [Line Items]
Debt instruments, carrying value		80,087	340,235
Debt instruments, fair value		80,087	340,235
Level 2 | Unsecured Loan
Debt Instrument [Line Items]
Debt instruments, carrying value	9,097	10,866	10,446
Debt instruments, fair value	9,097	10,866	10,446
Level 2 | Overdraft facilities
Debt Instrument [Line Items]
Debt instruments, carrying value	1,872	3,657	3,664
Debt instruments, fair value	1,872	3,657	3,664
Level 2 | Foreign credit facility
Debt Instrument [Line Items]
Debt instruments, carrying value	4,161	7,792	10,416
Debt instruments, fair value	4,161	7,792	10,416
Level 3 | LVMH Note
Debt Instrument [Line Items]
Debt instruments, carrying value	49,787	121,202	119,415
Debt instruments, fair value	$ 49,350	$ 119,426	$ 118,173

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Fair Value of Financial Instruments - Textuals (Details) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
	Dec. 01, 2023	Jun. 01, 2023	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Debt Instrument [Line Items]
Outstanding amount			$ 402,846	$ 483,840	$ 787,892
Impairment of the operating lease assets, net of tax				$ 2,700
Repayment of debt			$ 75,000
LVMH Note
Debt Instrument [Line Items]
Debt instrument interest rate			2.00%
Debt Instrument, Face Amount			$ 125,000
Debt discount			$ 40,000
Repayment of debt		$ 75,000
LVMH Note | Subsequent Event
Debt Instrument [Line Items]
Repayment of debt	$ 50,000

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LEASES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
Lessee, Operating Lease, Description [Abstract]
Option to extend			true
Lessee, operating lease, option to terminate			The exercise of lease renewal options is generally at the Company’s sole discretion. The exercise of lease termination options is generally by mutual agreement between the Company and the lessor.
Variable lease costs and short-term lease costs including rent forgiveness	$ 6.7	$ 6.1	$ 18.1	$ 16.7
Impairment charge related to the operating lease assets					$ 2.7
Minimum
Lessee, Operating Lease, Description [Abstract]
Operating lease, contract term	1 year		1 year
Renewal term	1 year		1 year
Maximum
Lessee, Operating Lease, Description [Abstract]
Operating lease, contract term	10 years		10 years
Renewal term	10 years		10 years

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LEASES - Lease assets and liabilities (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Assets and Liabilities, Lessee [Abstract]
Operating lease assets	$ 221,474	$ 239,665	$ 216,663
Classification of operating lease assets	Operating lease assets
Current operating lease liabilities	$ 55,897	52,917	50,645
Classification current operating lease liabilities	Current operating lease liabilities
Noncurrent operating lease liabilities	$ 183,522	204,974	185,171
Classification of noncurrent operating liabilities	Noncurrent operating lease liabilities
Total lease liabilities	$ 239,419	$ 257,891	$ 235,816

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LEASES - Lease cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Selling, general and administrative expenses
Lease, Cost [Abstract]
Lease costs	$ 18.1	$ 17.1	$ 55.1	$ 46.1

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LEASES - Future minimum payments under our operating lease (Details) - USD ($) $ in Thousands	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2024	$ 17,459
2025	72,772
2026	59,813
2027	46,756
2028	37,635
After 2028	60,142
Total lease payments	294,577
Less: Interest	55,158
Present value of lease liabilities	$ 239,419	$ 257,891	$ 235,816

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LEASES - Other information (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022
LEASES [Abstract]
Operating lease, lease not yet commenced, description	As of October 31, 2023, there are no material leases that are legally binding but have not yet commenced.
Weighted average remaining lease term	5 years
Weighted average discount rate	8.50%
Cash paid for amounts included in the measurement of operating lease liabilities	$ 53.2	$ 47.6
Right-of-use assets obtained in exchange for lease obligations	$ 26.8	$ 96.7

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KARL LAGERFELD ACQUISITION (Detail) - May 31, 2022 - Karl Lagerfeld Holding B.V. [Member] $ in Thousands, € in Millions	EUR (€)	USD ($)
Business Acquisition [Line Items]
Purchase price		$ 168,592
Plus: cash acquired		38,499
Plus: aggregate adjustments to purchase price		516
Initial Purchase Price		207,607
Plus: fair value of prior minority ownership		102,858
Total consideration		$ 310,465
Total consideration | €	€ 193.4

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KARL LAGERFELD ACQUISITION (Fair Value of Assets Acquired) (Details) - USD ($) $ in Thousands	Oct. 31, 2022	May 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 303,668
Karl Lagerfeld Holding B.V. [Member]
Business Acquisition [Line Items]
Cash and cash equivalents		$ 38,499
Accounts receivable		28,449
Inventories		33,489
Prepaid income taxes		1,100
Prepaid expenses and other current assets		3,347
Property, plant and equipment		11,545
Operating lease assets		55,753
Goodwill		84,336
Deferred income taxes		5,131
Other long-term assets		2,237
Total assets acquired		447,003
Notes payable		3,606
Accounts payable		9,175
Accrued Expense		15,261
Operating lease liabilities		58,942
Income taxes payable		2,099
Deferred income taxes.		42,222
Other long-term liabilities		5,233
Total liabilities assumed		136,538
Total fair value of acquisition consideration		310,465
Karl Lagerfeld Holding B.V. [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets		178,823
Karl Lagerfeld Holding B.V. [Member] | Customer Relationships
Business Acquisition [Line Items]
Intangible assets		$ 4,294

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KARL LAGERFELD ACQUISITION (Intangible Assets Acquired) (Details) - Karl Lagerfeld Holding B.V. [Member] - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Jan. 31, 2023
Business Acquisition [Line Items]
Fair value	$ 183,117
Weighted average amortization period	0 years
Transaction cost		$ 5,600
Trade Names [Member]
Business Acquisition [Line Items]
Fair value	$ 178,823
Weighted average amortization period	0 years
Customer Relationships
Business Acquisition [Line Items]
Fair value	$ 4,294
Weighted average amortization period	8 years

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KARL LAGERFELD ACQUISITION - Textual (Detail) $ in Thousands, € in Millions			9 Months Ended		12 Months Ended
	May 31, 2022 USD ($)	May 31, 2022 EUR (€)	Oct. 31, 2023 USD ($)	Oct. 31, 2022 USD ($)	Jan. 31, 2023 USD ($)	May 30, 2022
Business Acquisition [Line Items]
Recorded gain				$ 30,925
Goodwill impairment					$ 347,200
Goodwill				$ 303,668
Karl Lagerfeld Holding B.V. ("KLH")
Business Acquisition [Line Items]
Ownership percent						19.00%
KL North America B.V. [Member]
Business Acquisition [Line Items]
Ownership percent						49.00%
Karl Lagerfeld Holding B.V. [Member]
Business Acquisition [Line Items]
Remaining percentage of interest	81.00%
Initial Purchase Price	$ 207,607
Business combination, consideration transferred | €		€ 193.4
Recorded gain	27,100
Adjustment to assets in acquisition			$ 36,900
Adjustment to liabilities in acquisition			$ 36,900
Goodwill impairment					$ 84,300
Goodwill	$ 84,336
Estimated Life			15 years
Karl Lagerfeld Holding B.V. [Member] | Karl Lagerfeld Holding B.V. ("KLH")
Business Acquisition [Line Items]
Ownership percent						19.00%
Karl Lagerfeld Holding B.V. [Member] | Karl Lagerfeld Holding B.V. ("KLH")
Business Acquisition [Line Items]
Remaining percentage of interest	81.00%

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Net Income per Common Share - Reconciliation between basic and diluted net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Net Income per Common Share
Net Income (Loss)	$ 127,640	$ 61,103	$ 147,314	$ 128,056
Basic net income (loss) per share:
Basic common shares	45,723	47,488	45,904	47,832
Basic net income (loss) per share (in dollars per share)	$ 2.79	$ 1.29	$ 3.21	$ 2.68
Diluted net income (loss) per share:
Basic common shares	45,723	47,488	45,904	47,832
Diluted restricted stock awards and stock options	837	987	1,088	1,034
Diluted common shares	46,560	48,475	46,992	48,866
Diluted net income (loss) per share (in dollars per share)	$ 2.74	$ 1.26	$ 3.13	$ 2.62

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Net Income per Common Share - Textuals (Details) - shares	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Net Income per Common Share
Common stock excluded from the diluted net income per share calculation	8,200	310,600	59,200	258,600

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NOTES PAYABLE - Long-term debt (Details) $ in Thousands, € in Millions	Oct. 31, 2023 USD ($)	Oct. 31, 2023 EUR (€)	Jan. 31, 2023 USD ($)	Oct. 31, 2022 USD ($)
Debt Instrument [Line Items]
Total	$ 402,846		$ 483,840	$ 787,892
Long-term Debt
Debt Instrument [Line Items]
Subtotal	465,130		627,402	889,761
Less: Net debt issuance costs	(2,972)		(4,246)	(4,671)
Debt discount	(213)		(3,798)	(5,585)
Current portion of long-term debt	(59,099)		(135,518)	(91,613)
Secured notes
Debt Instrument [Line Items]
Debt issuance costs	8,500
Secured notes | Long-term Debt
Debt Instrument [Line Items]
Subtotal	400,000		400,000	400,000
Revolving credit facility
Debt Instrument [Line Items]
Debt issuance costs	2,800		4,000	4,400
Revolving credit facility | Long-term Debt
Debt Instrument [Line Items]
Subtotal			80,087	340,235
LVMH Note
Debt Instrument [Line Items]
Debt discount	(40,000)
LVMH Note | Long-term Debt
Debt Instrument [Line Items]
Subtotal	50,000		125,000	125,000
Unsecured Loan
Debt Instrument [Line Items]
Total	9,100	€ 8.6
Unsecured Loan | Long-term Debt
Debt Instrument [Line Items]
Subtotal	9,097		10,866	10,446
Overdraft facilities | Long-term Debt
Debt Instrument [Line Items]
Subtotal	1,872		3,657	3,664
Foreign credit facility | Long-term Debt
Debt Instrument [Line Items]
Subtotal	$ 4,161		$ 7,792	$ 10,416

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NOTES PAYABLE - Textuals (Details) $ in Thousands, € in Millions, SFr in Millions			1 Months Ended	6 Months Ended	9 Months Ended		39 Months Ended
	Jun. 01, 2023 USD ($)	Aug. 06, 2020 USD ($)	Aug. 31, 2020 USD ($)	Oct. 31, 2023 USD ($)	Oct. 31, 2023 USD ($)	Oct. 31, 2023 EUR (€)	Oct. 31, 2023 USD ($)	Oct. 31, 2023 EUR (€)	Oct. 31, 2023 CHF (SFr)	Jan. 31, 2023 USD ($)	Oct. 31, 2022 USD ($)	Aug. 07, 2020 USD ($)
Debt Instrument [Line Items]
Prepayment of principal amount					$ 75,000
Outstanding amount				$ 402,846	402,846		$ 402,846			$ 483,840	$ 787,892
Unamortized debt issuance costs		$ 3,300
Interest expense		$ 400
Secured Overnight Financing Rate SOFR Overnight Index Swap Rate One-Month Interest Period [Member]
Debt Instrument [Line Items]
Variable rate spread				1.00%
Term Loan [Member]
Debt Instrument [Line Items]
Prepayment of principal amount			$ 300,000
Long-term Debt
Debt Instrument [Line Items]
Debt discount				$ 213	$ 213		$ 213			3,798	5,585
Secured notes
Debt Instrument [Line Items]
Interest rate terms					The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year.	The Notes bear interest at a rate of 7.875% per year payable semi-annually in arrears on February 15 and August 15 of each year.
Debt instrument interest rate				7.875%	7.875%		7.875%	7.875%	7.875%			7.875%
Frequency of periodic payment					semi-annually	semi-annually
Principal amount of debt												$ 400,000
Debt issuance costs				$ 8,500	$ 8,500		$ 8,500
Secured notes | If Company experiences a Change of Control [Member]
Debt Instrument [Line Items]
Redemption percentage							101.00%
Revolving credit facility
Debt Instrument [Line Items]
Debt issuance costs				$ 2,800	$ 2,800		$ 2,800			$ 4,000	4,400
LVMH Note
Debt Instrument [Line Items]
Prepayment of principal amount	$ 75,000
Debt instrument interest rate				2.00%	2.00%		2.00%	2.00%	2.00%
Principal amount of debt				$ 125,000	$ 125,000		$ 125,000
Debt discount				40,000	$ 40,000		40,000
Debt facility amount											$ 75,000
LVMH Note | Notes Payable Due On June 1 2023
Debt Instrument [Line Items]
Prepayment of principal amount	$ 75,000
Maturity date					Jun. 01, 2023	Jun. 01, 2023
LVMH Note | Notes Payable due on December 1, 2023
Debt Instrument [Line Items]
Principal amount of debt				50,000	$ 50,000		50,000
Maturity date					Dec. 01, 2023	Dec. 01, 2023
Unsecured Loan
Debt Instrument [Line Items]
Outstanding amount				$ 9,100	$ 9,100		$ 9,100	€ 8.6
Installment payments | €						€ 0.6
Overdraft facility
Debt Instrument [Line Items]
Principal amount of debt								€ 5.0	SFr 4.7
Fixed rate				1.75%	1.75%		1.75%	1.75%	1.75%
Debt facility amount				$ 1,900	$ 1,900		$ 1,900	€ 1.8
Standby Letters of Credit
Debt Instrument [Line Items]
Borrowings outstanding				2,900	2,900		2,900
Foreign credit facility
Debt Instrument [Line Items]
Maximum borrowing amount | €								15.0
Borrowings outstanding				4,200	$ 4,200		4,200	€ 3.9
Foreign credit facility | Euro Interbank Offered Rate [Member]
Debt Instrument [Line Items]
Variable rate spread					1.70%	1.70%
Trade
Debt Instrument [Line Items]
Borrowings outstanding				$ 2,000	$ 2,000		$ 2,000
Minimum | Unsecured Loan
Debt Instrument [Line Items]
Fixed rate				0.00%	0.00%		0.00%	0.00%	0.00%
Minimum | Overdraft facility
Debt Instrument [Line Items]
Variable interest rate				0.00%	0.00%		0.00%	0.00%	0.00%
Maximum | Unsecured Loan
Debt Instrument [Line Items]
Fixed rate				5.00%	5.00%		5.00%	5.00%	5.00%
Maximum | Overdraft facility
Debt Instrument [Line Items]
Variable interest rate				0.50%	0.50%		0.50%	0.50%	0.50%

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NOTES PAYABLE - Second Amended and Restated ABL Credit Agreement (Details) - USD ($) $ in Thousands		6 Months Ended	9 Months Ended
	Aug. 07, 2020	Oct. 31, 2023	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022	Aug. 06, 2020
Debt Instrument [Line Items]
Outstanding amount		$ 402,846	$ 402,846	$ 483,840	$ 787,892
Secured Overnight Financing Rate SOFR Overnight Index Swap Rate One-Month Interest Period [Member]
Debt Instrument [Line Items]
Spread interest rate		1.00%
Second amended and restated credit agreement | Maximum
Debt Instrument [Line Items]
Debt instrument commitment fee percentage			0.50%
Second amended and restated credit agreement | Minimum
Debt Instrument [Line Items]
Debt instrument commitment fee percentage			0.35%
Second amended and restated credit agreement | Prime rate
Debt Instrument [Line Items]
Spread interest rate		0.50%
Second amended and restated credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Spread interest rate		0.10%
Senior secured credit facility
Debt Instrument [Line Items]
Debt issuance costs	$ 8,000
Senior secured credit facility | LIBOR One-Month Interest Period [Member]
Debt Instrument [Line Items]
Spread interest rate	1.00%
Senior secured credit facility | Federal funds rate
Debt Instrument [Line Items]
Spread interest rate	0.50%
Senior secured credit facility | Second amended and restated credit agreement
Debt Instrument [Line Items]
Term of credit agreement	5 years
Fixed charge coverage ratio		1.00%	1.00%
Credit covenant compliance			As of October 31, 2023, the Company was in compliance with these covenants.
Debt issuance costs	$ 5,100
Senior secured credit facility | Second amended and restated credit agreement | LIBOR [Member] | Maximum
Debt Instrument [Line Items]
Spread interest rate	2.25%
Senior secured credit facility | Second amended and restated credit agreement | LIBOR [Member] | Minimum
Debt Instrument [Line Items]
Spread interest rate	1.75%
Senior secured credit facility | Second amended and restated credit agreement | Base rate | Maximum
Debt Instrument [Line Items]
Spread interest rate	1.25%
Senior secured credit facility | Second amended and restated credit agreement | Base rate | Minimum
Debt Instrument [Line Items]
Spread interest rate	0.75%
Term Loan | Senior secured credit facility
Debt Instrument [Line Items]
Senior secured credit facility						$ 650,000
Term Loan | Senior secured credit facility | Second amended and restated credit agreement
Debt Instrument [Line Items]
Senior secured credit facility	$ 650,000

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REVENUE RECOGNITION - Textuals (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Jan. 31, 2023
REVENUE RECOGNITION [Abstract]
Contract liability	$ 3,300	$ 3,300	$ 5,100
Customer refund liabilities	(108,042)	(99,528)	(89,760)
Revenue recognized related to contract liabilities	3,100	4,300
Contract assets	0	0	0
Contract liability	$ 153,200	$ 150,349	$ 115,586

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SEGMENTS - Information Regarding Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 1,067,110	$ 1,078,299	$ 2,333,460	$ 2,372,300
Cost of goods sold	633,697	733,672	1,373,594	1,552,708
Gross profit	433,413	344,627	959,866	819,592
Selling, general and administrative expenses	236,308	239,893	703,476	616,351
Depreciation and amortization	6,595	7,270	19,130	20,021
Asset impairments and gain on lease terminations	222	250	222	212
Operating profit (loss)	190,288	97,214	237,038	183,008
Operating Segments | Wholesale operations
Segment Reporting Information [Line Items]
Net sales	1,054,303	1,069,574	2,280,391	2,338,435
Cost of goods sold	636,961	740,734	1,369,315	1,564,595
Gross profit	417,342	328,840	911,076	773,840
Selling, general and administrative expenses	213,263	216,916	633,841	548,411
Depreciation and amortization	5,475	6,224	16,247	17,304
Asset impairments and gain on lease terminations	222	250	222	250
Operating profit (loss)	198,382	105,450	260,766	207,875
Operating Segments | Retail
Segment Reporting Information [Line Items]
Net sales	32,711	28,762	97,268	87,758
Cost of goods sold	16,640	12,975	48,478	42,006
Gross profit	16,071	15,787	48,790	45,752
Selling, general and administrative expenses	23,045	22,977	69,635	67,940
Depreciation and amortization	1,120	1,046	2,883	2,717
Asset impairments and gain on lease terminations				(38)
Operating profit (loss)	(8,094)	(8,236)	(23,728)	(24,867)
Elimination
Segment Reporting Information [Line Items]
Net sales	(19,904)	(20,037)	(44,199)	(53,893)
Cost of goods sold	$ (19,904)	$ (20,037)	$ (44,199)	$ (53,893)

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SEGMENTS - Schedule of Total Net Sales by Licensed and Proprietary Product Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Segment Reporting Information [Line Items]
Net sales	$ 1,067,110	$ 1,078,299	$ 2,333,460	$ 2,372,300
Elimination
Segment Reporting Information [Line Items]
Net sales	(19,904)	(20,037)	(44,199)	(53,893)
Wholesale operations | Operating Segments
Segment Reporting Information [Line Items]
Net sales	1,054,303	1,069,574	2,280,391	2,338,435
Wholesale operations | Operating Segments | Licensed Brands [Member]
Segment Reporting Information [Line Items]
Net sales	625,231	669,408	1,261,894	1,403,142
Wholesale operations | Operating Segments | Proprietary Brands [Member]
Segment Reporting Information [Line Items]
Net sales	429,072	400,166	1,018,497	935,293
Retail | Operating Segments
Segment Reporting Information [Line Items]
Net sales	32,711	28,762	97,268	87,758
Retail | Operating Segments | Proprietary Brands [Member]
Segment Reporting Information [Line Items]
Net sales	$ 32,711	$ 28,762	$ 97,268	$ 87,758

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SEGMENTS - Method of Overhead Allocation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
SEGMENTS [Abstract]
Revenues	$ 1,067,110	$ 1,078,299	$ 2,333,460	$ 2,372,300

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STOCKHOLDERS' EQUITY - Textuals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Stockholders Equity [Line Items]
Common stock, shares issued	0	0	0	0
Treasury stock, shares utilized of equity awards	4,354	2,366	608,325	385,485
Aggregate purchase price			$ 26,100	$ 16,622

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Canadian Customs Duty Examination - Canadian Customs Duty Examination - (Details) - Oct. 31, 2023 $ in Millions, $ in Millions	CAD ($)	USD ($)
Canadian Customs Duty Examination [Line Items]
Income tax receivable	$ 12.4	$ 8.9
CBSA
Canadian Customs Duty Examination [Line Items]
Refund received	$ 2.7	$ 2.0

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RELATED PARTY TRANSACTIONS - Textuals (Details) - USD ($) $ in Thousands	1 Months Ended
	Jun. 30, 2023	Oct. 31, 2023	Jan. 31, 2023	Oct. 31, 2022	May 30, 2022
Related Party Transaction [Line Items]
Other current liabilities		$ 330	$ 905	$ 933
Karl Lagerfeld Holding B.V. ("KLH")
Related Party Transaction [Line Items]
Percent of interest acquired in joint venture					19.00%
KL North America B.V. [Member]
Related Party Transaction [Line Items]
Percent of interest acquired in joint venture					49.00%
Related Party [Member] | President [Member]
Related Party Transaction [Line Items]
Amount of transaction with related party	$ 4,100
Shares repurchased	208,943

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EMPLOYMENT AGREEMENTS - Textual (Details) - USD ($)	Aug. 09, 2023	Aug. 29, 2023
Chief Executive Officer [Member] | Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Granted	700,000
Vesting and exercise period of awards	3 years
President [Member] | Special Bonus [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Bonus awarded		$ 2,000,000
President [Member] | Retention Bonus [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Bonus awarded		$ 1,000,000

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2023	Oct. 31, 2022	Oct. 31, 2023	Oct. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 127,640	$ 61,103	$ 147,314	$ 128,056

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Insider Trading Arrangements	3 Months Ended
	Oct. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false