G III APPAREL GROUP LTD /DE/ Segments Disclosure
NOTE 15 — 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 platforms. Wholesale revenues also include revenues from license agreements related to trademarks associated with the Company’s owned brands. 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 Company determines its operating segments based on how the chief operating decision maker (“CODM”) views and analyzes each segment’s operations and performance. The Company’s CODM is its Chief Executive Officer. The CODM utilizes operating profit or loss as the measure of segment profit or loss. The CODM uses operating profit or loss to determine resource allocation and operational decisions for matters including, but not limited to, compensation, advertising and facilities needs.
All historical financial segment information has been recast to conform to the new disclosure requirements under ASU 2023-07.
The following segment information, in thousands, is presented for the fiscal years ended:
January 31, 2026 | ||||||||||||
| Wholesale | | Retail | | Elimination (1) | | Total | |||||
Net sales | $ | 2,866,314 | $ | 186,044 | $ | (95,346) | $ | 2,957,012 | ||||
Cost of goods sold | 1,795,577 | 92,752 | (95,346) | 1,792,983 | ||||||||
Gross profit | 1,070,737 | 93,292 | — | 1,164,029 | ||||||||
Selling, general and administrative expenses: | ||||||||||||
Compensation | 363,460 | 29,789 | — | 393,249 | ||||||||
Facility fees | 207,907 | 30,526 | — | 238,433 | ||||||||
Advertising | 120,946 | 18,093 | — | 139,039 | ||||||||
Other segment items(2) | 191,296 | 16,445 | — | 207,741 | ||||||||
Total selling, general and administrative expenses | 883,609 | 94,853 | — | 978,462 | ||||||||
Depreciation and amortization | 25,564 | 3,452 | — | 29,016 | ||||||||
Asset impairments | 48,565 | — | — | 48,565 | ||||||||
Operating profit (loss) | $ | 112,999 | $ | (5,013) | $ | — | $ | 107,986 | ||||
January 31, 2025 | ||||||||||||
| Wholesale | | Retail | | Elimination (1) | | Total | |||||
Net sales | $ | 3,083,749 | $ | 166,464 | $ | (69,417) | $ | 3,180,796 | ||||
Cost of goods sold | 1,869,199 | 82,488 | (69,417) | 1,882,270 | ||||||||
Gross profit | 1,214,550 | 83,976 | — | 1,298,526 | ||||||||
Selling, general and administrative expenses: | ||||||||||||
Compensation | 374,896 | 31,606 | — | 406,502 | ||||||||
Facility fees | 206,387 | 32,830 | — | 239,217 | ||||||||
Advertising | 132,381 | 14,424 | — | 146,805 | ||||||||
Other segment items(2) | 162,675 | 14,613 | — | 177,288 | ||||||||
Total selling, general and administrative expenses | 876,339 | 93,473 | — | 969,812 | ||||||||
Depreciation and amortization | 22,951 | 4,493 | — | 27,444 | ||||||||
Asset impairments | 8,195 | — | — | 8,195 | ||||||||
Operating profit (loss) | $ | 307,065 | $ | (13,990) | $ | — | $ | 293,075 | ||||
January 31, 2024 | ||||||||||||
| Wholesale | | Retail | | Elimination (1) | | Total | |||||
Net sales | $ | 3,009,614 | $ | 148,428 | $ | (59,800) | $ | 3,098,242 | ||||
Cost of goods sold | 1,839,183 | 77,012 | (59,800) | 1,856,395 | ||||||||
Gross profit | 1,170,431 | 71,416 | — | 1,241,847 | ||||||||
Selling, general and administrative expenses: | ||||||||||||
Compensation | 353,380 | 35,364 | — | 388,744 | ||||||||
Facility fees | 207,055 | 35,943 | — | 242,998 | ||||||||
Advertising | 111,109 | 11,456 | — | 122,565 | ||||||||
Other segment items(2) | 155,377 | 14,539 | — | 169,916 | ||||||||
Total selling, general and administrative expenses | 826,921 | 97,302 | — | 924,223 | ||||||||
Depreciation and amortization | 22,505 | 5,018 | — | 27,523 | ||||||||
Asset impairments | 7,140 | (382) | — | 6,758 | ||||||||
Operating profit (loss) | $ | 313,865 | $ | (30,522) | $ | — | $ | 283,343 | ||||
| 1) | Represents intersegment sales to the Company’s retail operations segment. |
| 2) | Other segment items include design and product development costs, professional fees, office expenses, freight and packaging, allowance for doubtful account charges and other selling, general and administrative expenses. |
The total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:
January 31, | |||||||||
2026 | 2025 | 2024 | |||||||
(In thousands) | |||||||||
Licensed brands | $ | 1,273,455 | $ | 1,525,658 | $ | 1,653,259 | |||
Proprietary brands | 1,592,859 | 1,558,091 | 1,356,355 | ||||||
Wholesale net sales | $ | 2,866,314 | $ | 3,083,749 | $ | 3,009,614 | |||
Proprietary brands | $ | 186,044 | $ | 166,464 | $ | 148,428 | |||
Retail net sales | $ | 186,044 | $ | 166,464 | $ | 148,428 | |||
The Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels, and relative sales levels, among other factors. The method of allocation has been applied consistently on a year-to-year basis.
The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:
January 31, | January 31, | |||||
| 2026 | | 2025 | |||
(In thousands) | ||||||
Wholesale | $ | 1,549,760 | $ | 1,508,111 | ||
Retail | 87,769 | 97,226 | ||||
Corporate | 973,291 | 877,897 | ||||
Total Assets | $ | 2,610,820 | $ | 2,483,234 | ||
The total net sales and long-lived assets by geographic region, in thousands, are as follows:
2026 | 2025 | 2024 | ||||||||||||||||
Long-Lived | Long-Lived | Long-Lived | ||||||||||||||||
Geographic Region | | Net Sales | | Assets | | Net Sales | | Assets | | Net Sales | | Assets | ||||||
United States | $ | 2,284,876 | $ | 622,505 | $ | 2,461,443 | $ | 685,110 | $ | 2,400,191 | $ | 605,548 | ||||||
Non-United States | 672,136 | 519,268 | 719,353 | 462,770 | 698,051 | 415,298 | ||||||||||||
$ | 2,957,012 | $ | 1,141,773 | $ | 3,180,796 | $ | 1,147,880 | $ | 3,098,242 | $ | 1,020,846 | |||||||
Capital expenditures for locations outside of the United States totaled $12.7 million, $18.1 million and $15.0 million for the years ended January 31, 2026, 2025 and 2024, respectively.
Capital expenditures for the wholesale operations segment and retail operations segment were $33.8 million and $1.4 million, respectively, for the year ended January 31, 2026. Capital expenditures for the wholesale operations segment and retail operations segment were $38.8 million and $2.8 million, respectively, for the year ended January 31, 2025. Capital expenditures for the wholesale operations segment and retail operations segment were $20.8 million and $3.9 million, respectively, for the year ended January 31, 2024.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 24, 2026 | Showing above |
| 2025 | Mar 24, 2025 | |
| 2024 | Mar 25, 2024 | |
| 2023 | Mar 27, 2023 | |
| 2022 | Mar 28, 2022 | |
| 2021 | Mar 26, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.