G III APPAREL GROUP LTD /DE/ 10-Q

Item 1. Financial Statements. G-III APPAREL GROUP, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, ​ October 31, ​ January 31, ​ ​ 2024 ​ 2023 ​ 2024 ​ (Unaudited) (Unaudited) ​ ​ ​ ​ (In thousands, except per share amounts) ASSETS ​ ​ ​ ​ ​ ​ ​ ​ ​ Current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 104,686 ​ $ 197,391 ​ $ 507,829 Accounts receivable, net of allowance for doubtful accounts of $ 1,355 , $ 18,412 and $ 1,471 , respectively ​ ​ 879,681 ​ ​ 863,221 ​ ​ 562,363 Inventories ​ ​ 532,463 ​ ​ 591,530 ​ ​ 520,426 Prepaid income taxes ​ ​ 9,207 ​ ​ 2,216 ​ ​ 1,356 Prepaid expenses and other current assets ​ ​ 55,183 ​ ​ 58,779 ​ ​ 68,344 Total current assets ​ ​ 1,581,220 ​ ​ 1,713,137 ​ ​ 1,660,318 Investments in unconsolidated affiliates ​ ​ 109,911 ​ ​ 24,354 ​ ​ 22,472 Property and equipment, net ​ ​ 70,298 ​ ​ 52,032 ​ ​ 55,084 Operating lease assets ​ ​ 286,232 ​ ​ 221,474 ​ ​ 216,886 Other assets, net ​ ​ 47,246 ​ ​ 53,852 ​ ​ 45,147 Other intangibles, net ​ ​ 28,232 ​ ​ 32,565 ​ ​ 31,676 Deferred income tax assets, net ​ ​ 26,964 ​ ​ 26,389 ​ ​ 19,248 Trademarks ​ ​ 633,508 ​ ​ 625,530 ​ ​ 630,333 Total assets ​ $ 2,783,611 ​ $ 2,749,333 ​ $ 2,681,164 LIABILITIES AND STOCKHOLDERS' EQUITY ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ Current portion of notes payable ​ $ 10,277 ​ $ 59,099 ​ $ 15,026 Accounts payable ​ ​ 239,882 ​ ​ 179,396 ​ ​ 182,531 Accrued expenses ​ ​ 160,059 ​ ​ 153,200 ​ ​ 140,535 Customer refund liabilities ​ ​ 88,323 ​ ​ 108,042 ​ ​ 84,054 Current operating lease liabilities ​ ​ 55,479 ​ ​ 55,897 ​ ​ 56,587 Income tax payable ​ ​ 45,730 ​ ​ 46,380 ​ ​ 14,676 Other current liabilities ​ ​ 571 ​ ​ 330 ​ ​ 219 Total current liabilities ​ ​ 600,321 ​ ​ 602,344 ​ ​ 493,628 Notes payable, net of discount and unamortized issuance costs ​ ​ 213,898 ​ ​ 402,846 ​ ​ 402,807 Deferred income tax liabilities, net ​ ​ 51,442 ​ ​ 44,265 ​ ​ 42,736 Noncurrent operating lease liabilities ​ ​ 246,834 ​ ​ 183,522 ​ ​ 178,247 Other noncurrent liabilities ​ ​ 22,390 ​ ​ 14,543 ​ ​ 15,764 Total liabilities ​ ​ 1,134,885 ​ ​ 1,247,520 ​ ​ 1,133,182 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Redeemable noncontrolling interests ​ ​ — ​ ​ ( 1,407 ) ​ ​ ( 2,278 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ 456,839 ​ ​ 453,504 ​ ​ 458,841 Accumulated other comprehensive income (loss) ​ ​ 3,420 ​ ​ ( 15,995 ) ​ ​ ( 3,207 ) Retained earnings ​ ​ 1,304,894 ​ ​ 1,131,258 ​ ​ 1,160,112 Common stock held in treasury, at cost - 5,511 , 3,670 and 3,668 shares, respectively ​ ​ ( 116,691 ) ​ ​ ( 65,811 ) ​ ​ ( 65,750 ) Total stockholders' equity ​ ​ 1,648,726 ​ ​ 1,503,220 ​ ​ 1,550,260 Total liabilities, redeemable noncontrolling interests and stockholders' equity ​ $ 2,783,611 ​ $ 2,749,333 ​ $ 2,681,164 The accompanying notes are an integral part of these statements . ​ 3 Table of Contents G-III APPAREL GROUP, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended October 31, ​ Nine Months Ended October 31, ​ ​ 2024 2023 2024 2023 ​ ​ (Unaudited) ​ ​ (In thousands, except per share amounts) Net sales ​ $ 1,086,759 ​ $ 1,067,110 ​ $ 2,341,261 ​ $ 2,333,460 Cost of goods sold ​ ​ 654,628 ​ ​ 633,697 ​ ​ 1,374,363 ​ ​ 1,373,594 Gross profit ​ ​ 432,131 ​ ​ 433,413 ​ ​ 966,898 ​ ​ 959,866 Selling, general and administrative expenses ​ ​ 259,240 ​ ​ 236,308 ​ ​ 724,891 ​ ​ 703,476 Depreciation and amortization ​ ​ 6,556 ​ ​ 6,595 ​ ​ 20,704 ​ ​ 19,130 Asset impairments ​ ​ — ​ ​ 222 ​ ​ — ​ ​ 222 Operating profit ​ ​ 166,335 ​ ​ 190,288 ​ ​ 221,303 ​ ​ 237,038 Other income (loss) ​ ​ 942 ​ ​ ( 3,129 ) ​ ​ ( 2,233 ) ​ ​ ( 1,964 ) Interest and financing charges, net ​ ​ ( 6,358 ) ​ ​ ( 11,024 ) ​ ​ ( 16,658 ) ​ ​ ( 32,666 ) Income before income taxes ​ ​ 160,919 ​ ​ 176,135 ​ ​ 202,412 ​ ​ 202,408 Income tax expense ​ ​ 46,151 ​ ​ 48,755 ​ ​ 57,903 ​ ​ 55,651 Net income ​ ​ 114,768 ​ ​ 127,380 ​ ​ 144,509 ​ ​ 146,757 Less: Loss attributable to noncontrolling interests ​ ​ — ​ ​ ( 260 ) ​ ​ ( 273 ) ​ ​ ( 557 ) Net income attributable to G-III Apparel Group, Ltd. ​ $ 114,768 ​ $ 127,640 ​ $ 144,782 ​ $ 147,314 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NET INCOME PER COMMON SHARE ATTRIBUTABLE TO G-III APPAREL GROUP, LTD.: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share ​ $ 2.62 ​ $ 2.79 ​ $ 3.24 ​ $ 3.21 Weighted average number of shares outstanding ​ ​ 43,885 ​ ​ 45,723 ​ ​ 44,640 ​ ​ 45,904 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income per common share ​ $ 2.55 ​ $ 2.74 ​ $ 3.17 ​ $ 3.13 Weighted average number of shares outstanding ​ ​ 44,954 ​ ​ 46,560 ​ ​ 45,719 ​ ​ 46,992 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income ​ $ 114,768 ​ $ 127,380 ​ $ 144,509 ​ $ 146,757 Other comprehensive income (loss): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign currency translation adjustments ​ ​ 15,489 ​ ​ ( 11,391 ) ​ ​ 6,589 ​ ​ ( 4,317 ) Other comprehensive income (loss) ​ ​ 15,489 ​ ​ ( 11,391 ) ​ ​ 6,589 ​ ​ ( 4,317 ) Comprehensive income ​ $ 130,257 ​ $ 115,989 ​ $ 151,098 ​ $ 142,440 Comprehensive loss attributable to noncontrolling interests: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net loss ​ ​ — ​ ​ ( 260 ) ​ ​ ( 273 ) ​ ​ ( 557 ) Foreign currency translation adjustments ​ ​ — ​ ​ ( 1 ) ​ ​ 38 ​ ​ ( 25 ) Comprehensive loss attributable to noncontrolling interests ​ ​ — ​ ​ ( 261 ) ​ ​ ( 235 ) ​ ​ ( 582 ) Comprehensive income attributable to G-III Apparel Group, Ltd. ​ $ 130,257 ​ $ 115,728 ​ $ 150,863 ​ $ 141,858 ​ The accompanying notes are an integral part of these statements. ​ 4 Table of Contents 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, 2024 ​ $ 264 ​ $ 451,005 ​ $ ( 12,069 ) ​ $ 1,190,126 ​ $ ( 116,691 ) ​ $ 1,512,635 Share-based compensation expense ​ ​ — ​ ​ 5,834 ​ ​ — ​ ​ — ​ ​ — ​ ​ 5,834 Other comprehensive income, net ​ ​ — ​ ​ — ​ ​ 15,489 ​ ​ — ​ ​ — ​ ​ 15,489 Net income attributable to G-III Apparel Group, Ltd. ​ ​ — ​ ​ — ​ ​ — ​ ​ 114,768 ​ ​ — ​ ​ 114,768 Balance as of October 31, 2024 ​ $ 264 ​ $ 456,839 ​ $ 3,420 ​ $ 1,304,894 ​ $ ( 116,691 ) ​ $ 1,648,726 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 January 31, 2024 ​ $ 264 ​ $ 458,841 ​ $ ( 3,207 ) ​ $ 1,160,112 ​ $ ( 65,750 ) ​ $ 1,550,260 Equity awards vested, net ​ ​ — ​ ​ ( 9,668 ) ​ ​ — ​ ​ — ​ ​ 9,668 ​ ​ — Share-based compensation expense ​ ​ — ​ ​ 17,942 ​ ​ — ​ ​ — ​ ​ — ​ ​ 17,942 Taxes paid for net share settlements ​ ​ — ​ ​ ( 7,534 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 7,534 ) Other comprehensive income, net ​ ​ — ​ ​ — ​ ​ 6,627 ​ ​ — ​ ​ — ​ ​ 6,627 Repurchases of common stock ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 59,973 ) ​ ​ ( 59,973 ) Excise tax on stock repurchases ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 636 ) ​ ​ ( 636 ) Reduction of noncontrolling interest ​ ​ — ​ ​ ( 2,742 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 2,742 ) Net income attributable to G-III Apparel Group, Ltd. ​ ​ — ​ ​ — ​ ​ — ​ ​ 144,782 ​ ​ — ​ ​ 144,782 Balance as of October 31, 2024 ​ $ 264 ​ $ 456,839 ​ $ 3,420 ​ $ 1,304,894 ​ $ ( 116,691 ) ​ $ 1,648,726 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ The accompanying notes are an integral part of these statements. ​ 5 Table of Contents G-III APPAREL GROUP, LTD. AND SUBSIDIARIES ​ CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended October 31, ​ 2024 2023 ​ ​ (Unaudited, in thousands) Cash flows from operating activities ​ ​ ​ ​ ​ ​ Net income attributable to G-III Apparel Group, Ltd. ​ $ 144,782 ​ $ 147,314 Adjustments to reconcile net income to net cash (used in) provided by operating activities: ​ ​ ​ ​ ​ ​ Depreciation and amortization ​ ​ 20,704 ​ ​ 19,130 Loss on disposal of fixed assets ​ ​ 388 ​ ​ 239 Non-cash operating lease costs ​ ​ 44,176 ​ ​ 43,467 Asset impairment ​ ​ — ​ ​ 222 Extinguishment of deferred financing costs ​ ​ 1,598 ​ ​ — Equity gain in unconsolidated affiliates ​ ​ 2,758 ​ ​ 3,725 Change in fair value of equity securities ​ ​ — ​ ​ ( 1,009 ) Share-based compensation ​ ​ 17,942 ​ ​ 11,728 Deferred financing charges and debt discount amortization ​ ​ 1,951 ​ ​ 6,054 Deferred income taxes ​ ​ 990 ​ ​ ( 519 ) Changes in operating assets and liabilities: ​ ​ ​ ​ ​ ​ Accounts receivable, net ​ ​ ( 317,318 ) ​ ​ ( 188,258 ) Inventories ​ ​ ( 12,037 ) ​ ​ 117,815 Income taxes, net ​ ​ 23,203 ​ ​ 35,175 Prepaid expenses and other current assets ​ ​ 13,949 ​ ​ 12,636 Other assets, net ​ ​ ( 730 ) ​ ​ ( 3,044 ) Customer refund liabilities ​ ​ 4,269 ​ ​ 18,282 Operating lease liabilities ​ ​ ( 44,270 ) ​ ​ ( 43,750 ) Accounts payable, accrued expenses and other liabilities ​ ​ 80,629 ​ ​ 47,064 Net cash (used in) provided by operating activities ​ ​ ( 17,016 ) ​ ​ 226,271 ​ ​ ​ ​ ​ ​ ​ Cash flows from investing activities ​ ​ ​ ​ ​ ​ Operating lease assets initial direct costs ​ ​ ( 1,757 ) ​ ​ ( 52 ) Proceeds from sale of assets ​ ​ 733 ​ ​ — Investment in equity interest of private company ​ ​ ( 84,832 ) ​ ​ ( 3,600 ) Capital expenditures ​ ​ ( 31,757 ) ​ ​ ( 15,653 ) Net cash used in investing activities ​ ​ ( 117,613 ) ​ ​ ( 19,305 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ ​ ​ ​ Repayment of borrowings - revolving facility ​ ​ ( 228,756 ) ​ ​ ( 112,826 ) Proceeds from borrowings - revolving facility ​ ​ 438,811 ​ ​ 32,738 Repayment of borrowings - LVMH Note ​ ​ — ​ ​ ( 75,000 ) Repayment of borrowings - foreign facilities ​ ​ ( 103,635 ) ​ ​ ( 106,100 ) Proceeds from borrowings - foreign facilities ​ ​ 97,338 ​ ​ 99,032 Repayment of borrowings - senior secured notes ​ ​ ( 400,000 ) ​ ​ — Payment of financing costs ​ ​ ( 3,785 ) ​ ​ — Purchase of treasury shares ​ ​ ( 59,973 ) ​ ​ ( 26,100 ) Taxes paid for net share settlements ​ ​ ( 7,534 ) ​ ​ ( 10,828 ) Net cash used in financing activities ​ ​ ( 267,534 ) ​ ​ ( 199,084 ) ​ ​ ​ ​ ​ ​ ​ Foreign currency translation adjustments ​ ​ ( 980 ) ​ ​ ( 2,143 ) Net (decrease) increase in cash and cash equivalents ​ ​ ( 403,143 ) ​ ​ 5,739 Cash and cash equivalents at beginning of period ​ ​ 507,829 ​ ​ 191,652 Cash and cash equivalents at end of period ​ $ 104,686 ​ $ 197,391 ​ ​ ​ ​ ​ ​ ​ Supplemental disclosures of cash flow information ​ ​ ​ ​ ​ ​ Cash payments: ​ ​ ​ ​ ​ ​ Interest, net ​ $ 26,036 ​ $ 32,882 Income tax payments, net ​ $ 29,691 ​ $ 20,195 Excise tax liability related to stock repurchases ​ $ 636 ​ $ — ​ The accompanying notes are an integral part of these statements . ​ 6 Table of Contents 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. The Company’s DKNY and Donna Karan business in China is operated by Fabco Holding B.V. (“Fabco”), a Dutch joint venture limited liability company that was 75 % owned by the Company through April 16, 2024 and was treated as a consolidated majority-owned subsidiary. Effective April 17, 2024, the Company acquired the remaining 25 % interest in Fabco that it did not previously own and, as a result, Fabco began being treated as a wholly-owned subsidiary. AWWG Investments B.V. (“AWWG”) is a Dutch corporation that was 12.1 % owned by the Company from May 3, 2024 through July 18, 2024 and was accounted for using the cost method. Effective July 19, 2024, the Company acquired an additional 6.6 % minority interest in AWWG, increasing its total ownership interest to 18.7 % and, as a result, AWWG began being accounted for under the equity method of accounting. All material intercompany balances and transactions have been eliminated. ​ Karl Lagerfeld Holding B.V. (“KLH”), a Dutch limited liability company that is wholly-owned by the Company, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Sonia Rykiel, a Swiss corporation that is wholly-owned by the Company, Fabco and AWWG 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, Sonia Rykiel, Fabco and AWWG 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, 2024, the results of KLH, Vilebrequin, Sonia Rykiel, Fabco and AWWG are included for the nine-month period ended September 30, 2024. The Company’s retail operations segment reports on a 52/53 week fiscal year. For fiscal 2025 and 2024, the three and nine-month periods for the retail operations segment were each 13-week and 39-week periods, respectively, and ended on November 2, 2024 and October 28, 2023, respectively. ​ The results for the three and nine months ended October 31, 2024 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, 2024 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 Table of Contents 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 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, 2024, October 31, 2023 and January 31, 2024 were: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2024 ​ Wholesale Retail Total ​ ​ (In thousands) Accounts receivable, gross ​ $ 879,572 ​ $ 1,464 ​ $ 881,036 Allowance for doubtful accounts ​ ​ ( 1,217 ) ​ ​ ( 138 ) ​ ​ ( 1,355 ) Accounts receivable, net ​ $ 878,355 ​ $ 1,326 ​ $ 879,681 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ January 31, 2024 ​ ​ Wholesale Retail Total ​ ​ (In thousands) Accounts receivable, gross ​ $ 563,130 ​ $ 704 ​ $ 563,834 Allowance for doubtful accounts ​ ​ ( 1,408 ) ​ ​ ( 63 ) ​ ​ ( 1,471 ) Accounts receivable, net ​ $ 561,722 ​ $ 641 ​ $ 562,363 ​ 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 Table of Contents The Company had the following activity in its allowance for doubtful accounts: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Wholesale Retail Total ​ ​ (In thousands) Balance as of January 31, 2024 ​ $ ( 1,408 ) ​ $ ( 63 ) ​ $ ( 1,471 ) Provision for credit losses, net ​ ​ 143 ​ ​ ( 75 ) ​ ​ 68 Accounts written off as uncollectible ​ ​ 48 ​ ​ — ​ ​ 48 Balance as of October 31, 2024 ​ $ ( 1,217 ) ​ $ ( 138 ) ​ $ ( 1,355 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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, 2023 ​ $ ( 18,237 ) ​ $ ( 60 ) ​ $ ( 18,297 ) Provision for credit losses, net ​ ​ 166 ​ ​ ( 3 ) ​ ​ 163 Accounts written off as uncollectible ​ ​ 16,663 ​ ​ — ​ ​ 16,663 Balance as of January 31, 2024 ​ $ ( 1,408 ) ​ $ ( 63 ) ​ $ ( 1,471 ) ​ ​ NOTE 3 – INVENTORIES ​ Wholesale inventories, which comprise a significant portion of the Company’s inventory, and KLH inventories 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 $ 10.6 million, $ 15.6 million and $ 16.5 million as of October 31, 2024, October 31, 2023 and January 31, 2024, 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 $ 5.6 million, $ 7.9 million and $ 6.6 million at October 31, 2024, October 31, 2023 and January 31, 2024, 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 Table of Contents 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 ​ 2024 ​ 2023 ​ 2024 ​ 2024 ​ 2023 ​ 2024 ​ ​ ​ ​ (In thousands) Secured Notes ​ 1 ​ $ — ​ $ 400,000 ​ $ 400,000 ​ $ — ​ $ 396,340 ​ $ 401,080 Revolving credit facility ​ 2 ​ ​ 210,055 ​ ​ — ​ ​ — ​ ​ 210,055 ​ ​ — ​ ​ — Note issued to LVMH ​ 3 ​ ​ — ​ ​ 49,787 ​ ​ — ​ ​ — ​ ​ 49,350 ​ ​ — Unsecured loans ​ 2 ​ ​ 7,326 ​ ​ 9,097 ​ ​ 8,791 ​ ​ 7,326 ​ ​ 9,097 ​ ​ 8,791 Overdraft facilities ​ 2 ​ ​ 4,608 ​ ​ 1,872 ​ ​ 2,651 ​ ​ 4,608 ​ ​ 1,872 ​ ​ 2,651 Foreign credit facility ​ 2 ​ ​ 2,186 ​ ​ 4,161 ​ ​ 8,939 ​ ​ 2,186 ​ ​ 4,161 ​ ​ 8,939 ​ 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 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 fair value of the Company’s secured notes was based on their market price at each fiscal quarter end. The Company redeemed the entire $ 400 million principal amount of its 7.875 % Senior Secured Notes due August 2025 (the “Notes”) at a redemption price equal to 100 % of the principal amount of the Notes plus accrued and unpaid interest in August 2024. ​ 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 Accounting Standards Codification (“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 recorded 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 2024, the Company recorded a $ 1.3 million impairment charge primarily related to leasehold improvements, furniture and fixtures, computer hardware and operating lease assets at certain DKNY, Karl Lagerfeld 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 10 Table of Contents 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, 2024, October 31, 2023 and January 31, 2024 consist of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Leases ​ Classification ​ October 31, 2024 ​ October 31, 2023 ​ January 31, 2024 ​ ​ ​ ​ (In thousands) Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating ​ Operating lease assets ​ $ 286,232 ​ $ 221,474 ​ $ 216,886 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current operating ​ Current operating lease liabilities ​ $ 55,479 ​ $ 55,897 ​ $ 56,587 Noncurrent operating ​ Noncurrent operating lease liabilities ​ ​ 246,834 ​ ​ 183,522 ​ ​ 178,247 Total lease liabilities ​ ​ ​ $ 302,313 ​ $ 239,419 ​ $ 234,834 ​ The Company’s operating lease assets and operating lease liabilities increased during fiscal 2025 primarily due to the renewal of the Company’s corporate office lease. The Company recorded lease costs of $ 19.0 million and $ 55.2 million during the three and nine months ended October 31, 2024. The Company recorded lease costs of $ 18.1 million and $ 55.1 million during the three and nine months ended October 31, 2023. 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 $ 5.0 million and $ 16.1 million for the three and nine months ended October 31, 2024. 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. Short-term lease costs are immaterial. ​ As of October 31, 2024, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2029 and thereafter are as follows: ​ ​ ​ ​ ​ Year Ending January 31, ​ Amount ​ ​ (In thousands) 2025 ​ $ 18,641 2026 ​ ​ 72,868 2027 ​ ​ 61,177 2028 ​ ​ 51,862 2029 ​ ​ 42,716 After 2029 ​ ​ 130,897 Total lease payments ​ $ 378,161 Less: Interest ​ ​ 75,848 Present value of lease liabilities ​ $ 302,313 ​ As of October 31, 2024, there are no material leases that are legally binding but have not yet commenced. ​ As of October 31, 2024, the weighted average remaining lease term related to operating leases is 6.7 years. The weighted average discount rate related to operating leases is 6.8 %. ​ Cash paid for amounts included in the measurement of operating lease liabilities was $ 58.9 million and $ 53.2 million during the nine months ended October 31, 2024 and 2023, respectively. Right-of-use assets obtained in exchange for lease obligations were $ 108.7 million and $ 26.8 million during the nine months ended October 31, 2024 and 2023, respectively. ​ ​ 11 Table of Contents NOTE 6 – 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. There were no shares of common stock excluded from the diluted net income per share calculation for the three and nine months ended October 31, 2024. 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. 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, ​ 2024 2023 2024 2023 ​ ​ (In thousands, except share and per share amounts) Net income attributable to G-III Apparel Group, Ltd. ​ $ 114,768 ​ $ 127,640 ​ $ 144,782 ​ $ 147,314 Basic net income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic common shares ​ ​ 43,885 ​ ​ 45,723 ​ ​ 44,640 ​ ​ 45,904 Basic net income per share ​ $ 2.62 ​ $ 2.79 ​ $ 3.24 ​ $ 3.21 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted net income per share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic common shares ​ ​ 43,885 ​ ​ 45,723 ​ ​ 44,640 ​ ​ 45,904 Dilutive restricted stock unit awards and stock options ​ ​ 1,069 ​ ​ 837 ​ ​ 1,079 ​ ​ 1,088 Diluted common shares ​ ​ 44,954 ​ ​ 46,560 ​ ​ 45,719 ​ ​ 46,992 Diluted net income per share ​ $ 2.55 ​ $ 2.74 ​ $ 3.17 ​ $ 3.13 ​ ​ ​ NOTE 7 – NOTES PAYABLE ​ Long-term debt consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2024 October 31, 2023 January 31, 2024 ​ ​ (In thousands) Secured Notes ​ $ — ​ $ 400,000 ​ $ 400,000 Revolving credit facility ​ ​ 210,055 ​ ​ — ​ ​ — LVMH Note ​ ​ — ​ ​ 50,000 ​ ​ — Unsecured loans ​ ​ 7,326 ​ ​ 9,097 ​ ​ 8,791 Overdraft facilities ​ ​ 4,608 ​ ​ 1,872 ​ ​ 2,651 Foreign credit facility ​ ​ 2,186 ​ ​ 4,161 ​ ​ 8,939 Subtotal ​ ​ 224,175 ​ ​ 465,130 ​ ​ 420,381 Less: Net debt issuance costs (1) ​ ​ — ​ ​ ( 2,972 ) ​ ​ ( 2,548 ) Debt discount ​ ​ — ​ ​ ( 213 ) ​ ​ — Current portion of long-term debt ​ ​ ( 10,277 ) ​ ​ ( 59,099 ) ​ ​ ( 15,026 ) Total ​ $ 213,898 ​ $ 402,846 ​ $ 402,807 (1) Does not include debt issuance costs, net of amortization, totaling $ 5.2 million, $ 2.8 million and $ 2.4 million as of October 31, 2024, October 31, 2023 and January 31, 2024, 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 ​ The Company had previously completed a private debt offering of $ 400 million aggregate principal amount of the Notes. ​ In August 2024, the Company used cash on hand and borrowings from its revolving credit facility to make a $ 400.7 million payment to voluntarily redeem the entire $ 400 million principal amount of the Notes at a redemption price equal to 100 % 12 Table of Contents of the principal amount of the Notes plus accrued and unpaid interest. At the date of redemption, the Company had unamortized debt issuance costs of $ 1.6 million associated with the Notes. These debt issuance costs were fully extinguished and charged to interest expense in the Company’s results of operations. ​ Third Amended and Restated ABL Credit Agreement ​ On June 4, 2024, the Company’s subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., AM Retail Group, Inc. and The Donna Karan Company Store LLC (collectively, the “Borrowers”), entered into the third amended and restated credit agreement (the “Third ABL Credit Agreement”) with the lenders named therein and with JPMorgan Chase Bank, N.A., as administrative agent. The Third ABL Credit Agreement is a five-year senior secured asset-based revolving credit facility providing for borrowings in an aggregate principal amount of up to $ 700 million. The Company and certain of its wholly-owned domestic subsidiaries, as well as G-III Apparel Canada ULC (collectively, the “Guarantors”), are guarantors under the Third ABL Credit Agreement. ​ The Third ABL Credit Agreement amends and restates the Second Amended Credit Agreement, dated as of August 7, 2020 (as amended, supplemented or otherwise modified from time to time prior to June 4, 2024, the “Second Credit Agreement”), by and among the Borrowers and the Guarantors, the lenders from time-to-time party thereto, and JPMorgan Chase Bank, N.A., in its capacity as the administrative agent thereunder. The Second Credit Agreement provided for borrowings of up to $ 650 million and was due to expire on August 7, 2025 . The Third ABL Credit Agreement extends the maturity date to June 2029, subject to a springing maturity date as defined within the credit agreement. ​ Amounts available under the Third ABL Credit Agreement are subject to borrowing base formulas and overadvances as specified in the Third ABL Credit Agreement. Borrowings bear interest, at the Borrowers’ option, at Adjusted Term Secured Overnight Financing Rate (“SOFR”) plus a margin of 1.50 % to 2.00 %, or the alternate base rate plus a margin of 0.50 % to 1.00 % (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) SOFR for a borrowing with an interest period of one month plus 1.00 %), with the applicable margin determined based on the Borrowers’ average daily availability under the Third ABL Credit Agreement. As of October 31, 2024, interest under the Third ABL Credit Agreement was being paid at an average rate of 6.57 % per annum. ​ The Third 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 Third 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 0.375 % 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 0.25 % 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 Third ABL Credit Agreement 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, 2024, the Company was in compliance with these covenants. ​ As of October 31, 2024, the Company had $ 210.1 million borrowings outstanding under the Third ABL Credit Agreement. The Third ABL Credit Agreement also includes amounts available for letters of credit. As of October 31, 2024, there were outstanding trade and standby letters of credit amounting to $ 6.2 million and $ 2.9 million, respectively. ​ At the date of the refinancing of the Second ABL Credit Agreement, the Company had $ 1.9 million of unamortized debt issuance costs remaining from the Second ABL Credit Agreement. There was no extinguishment of any amount of the unamortized debt issuance costs remaining from the Second ABL Credit Agreement. The Company incurred new debt issuance costs totaling $ 3.8 million related to the Third ABL Credit Agreement. The Company has a total of $ 5.6 million debt issuance costs related to its Third 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 Third ABL Credit Agreement. ​ 13 Table of Contents LVMH Note ​ As a portion of the consideration for the acquisition of DKNY and Donna Karan, the Company issued to LVMH a junior lien secured promissory note in the principal amount of $ 125.0 million that bore interest at the rate of 2 % per year. $ 75.0 million of the principal amount of the LVMH Note was paid on June 1, 2023 and the remaining $ 50.0 million of such principal amount was paid on December 1, 2023 . ​ ASC 820 required the LVMH Note to be recorded at fair value at issuance. As a result, the Company recorded a $ 40.0 million debt discount. This discount was 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 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, 2024, the Company had an aggregate outstanding balance of € 6.0 million ($ 7.3 million) under these unsecured loans. ​ Overdraft Facilities ​ During fiscal 2021 and 2025, certain of the Company’s foreign entities entered into overdraft facilities that allow for applicable bank accounts to be in a negative position up to a certain maximum overdraft. These uncommitted overdraft facilities with HSBC Bank allow for an aggregate maximum overdraft of € 10 million. Interest on drawn balances accrues at a rate equal to the Euro Interbank Offered Rate plus a margin of 1.75 % per annum, payable quarterly. The facility may be cancelled at any time by the Company or HSBC Bank. As part of a COVID-19 relief program, certain of the Company’s foreign entities 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, 2024, the Company had an aggregate of € 4.1 million ($ 4.6 million) drawn under these various 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 Euro Interbank Offered Rate plus a margin of 1.7 %. As of October 31, 2024, KLH had an aggregate outstanding balance of € 2.0 million ($ 2.2 million) borrowings outstanding under this credit facility. ​ NOTE 8 – 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 14 Table of Contents 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 $ 4.6 million, $ 3.3 million and $ 5.2 million at October 31, 2024, October 31, 2023 and January 31, 2024, respectively. The Company recognized $ 3.6 million in revenue for the three months ended October 31, 2024 related to contract liabilities that existed at July 31, 2024. The Company recognized $ 4.5 million in revenue for the nine months ended October 31, 2024 related to contract liabilities that existed at January 31, 2024. There were no contract assets recorded as of October 31, 2024, October 31, 2023 and January 31, 2024. Substantially all of the advance payments from licensees as of October 31, 2024 are expected to be recognized as revenue within the next twelve months. ​ NOTE 9 – SEGMENTS ​ The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products 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 royalty 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, 2024 ​ Wholesale Retail Elimination (1) Total ​ ​ (In thousands) Net sales ​ $ 1,066,635 ​ $ 42,333 ​ $ ( 22,209 ) ​ $ 1,086,759 Cost of goods sold ​ ​ 656,659 ​ ​ 20,178 ​ ​ ( 22,209 ) ​ ​ 654,628 Gross profit ​ ​ 409,976 ​ ​ 22,155 ​ ​ — ​ ​ 432,131 Selling, general and administrative expenses ​ ​ 235,628 ​ ​ 23,612 ​ ​ — ​ ​ 259,240 Depreciation and amortization ​ ​ 5,674 ​ ​ 882 ​ ​ — ​ ​ 6,556 Operating profit (loss) ​ $ 168,674 ​ $ ( 2,339 ) ​ $ — ​ $ 166,335 ​ 15 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 ​ ​ 222 ​ ​ — ​ ​ — ​ ​ 222 Operating profit (loss) ​ $ 198,382 ​ $ ( 8,094 ) ​ $ — ​ $ 190,288 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended October 31, 2024 ​ Wholesale Retail Elimination (1) Total ​ ​ (In thousands) Net sales ​ $ 2,284,710 ​ $ 110,060 ​ $ ( 53,509 ) ​ $ 2,341,261 Cost of goods sold ​ ​ 1,374,544 ​ ​ 53,328 ​ ​ ( 53,509 ) ​ ​ 1,374,363 Gross profit ​ ​ 910,166 ​ ​ 56,732 ​ ​ — ​ ​ 966,898 Selling, general and administrative expenses ​ ​ 658,645 ​ ​ 66,246 ​ ​ — ​ ​ 724,891 Depreciation and amortization ​ ​ 17,113 ​ ​ 3,591 ​ ​ — ​ ​ 20,704 Operating profit (loss) ​ $ 234,408 ​ $ ( 13,105 ) ​ $ — ​ $ 221,303 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 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 impairments ​ ​ 222 ​ ​ — ​ ​ — ​ ​ 222 Operating profit (loss) ​ $ 260,766 ​ $ ( 23,728 ) ​ $ — ​ $ 237,038 ​ (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, 2024 October 31, 2023 October 31, 2024 October 31, 2023 ​ ​ (In thousands) Licensed brands ​ $ 560,780 ​ $ 625,231 ​ $ 1,109,630 ​ $ 1,261,894 Proprietary brands ​ ​ 505,855 ​ ​ 429,072 ​ ​ 1,175,080 ​ ​ 1,018,497 Wholesale net sales ​ $ 1,066,635 ​ $ 1,054,303 ​ $ 2,284,710 ​ $ 2,280,391 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Licensed brands ​ $ — ​ $ — ​ $ — ​ $ — Proprietary brands ​ ​ 42,333 ​ ​ 32,711 ​ ​ 110,060 ​ ​ 97,268 Retail net sales ​ $ 42,333 ​ $ 32,711 ​ $ 110,060 ​ $ 97,268 ​ The total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October 31, 2024 October 31, 2023 January 31, 2024 ​ ​ (In thousands) Wholesale ​ $ 1,611,042 ​ $ 1,700,179 ​ $ 1,562,203 Retail ​ ​ 115,505 ​ ​ 120,080 ​ ​ 104,272 Corporate ​ ​ 1,057,064 ​ ​ 929,074 ​ ​ 1,014,689 Total assets ​ $ 2,783,611 ​ $ 2,749,333 ​ $ 2,681,164 ​ 16 Table of Contents NOTE 10 – STOCKHOLDERS’ EQUITY ​ For the three months ended October 31, 2024, the Company issued no shares of common stock and utilized no shares of treasury stock in connection with the vesting of equity awards. 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 nine months ended October 31, 2024, the Company issued no shares of common stock and utilized 366,714 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. ​ NOTE 11 – FABCO ​ On April 17, 2024, the Company acquired from Amlon Capital B.V. (“Amlon”) the remaining 25 % interest in Fabco that it did not previously own for $ 0.2 million. Additionally, at the date of the transaction, there were $ 1.2 million of payables due from Fabco to Amlon. As settlement of a portion of the outstanding payables, the Company issued a non-interest bearing promissory note to Amlon in the principal amount of $ 0.6 million of which $ 0.4 million of the principal amount is due and payable on April 17, 2025 and $ 0.2 million of the principal amount is due and payable on April 17, 2026. The promissory note is classified in notes payable in the Company’s condensed consolidated balance sheet as of October 31, 2024. The remaining $ 0.6 million of payables due to Amlon was forgiven, resulting in the Company recognizing a gain of $ 0.6 million within other income (loss) in the Company’s condensed consolidated statements of income and comprehensive income. ​ Since the Company controlled Fabco prior to this transaction and continues to control Fabco after the transaction, the Company accounted for the change in its ownership interest in Fabco as an equity transaction, which was reflected as a reduction of the noncontrolling interest with a corresponding decrease to additional paid in capital as a result of losses incurred by Fabco. No gain or loss was recognized in the Company’s condensed consolidated statements of income and comprehensive income as a result of this transaction. ​ NOTE 12 – AWWG INVESTMENT ​ In May 2024, the Company acquired a 12.1 % minority interest in AWWG for € 50 million ($ 53.6 million). AWWG is a global fashion group and premier platform for international brands. AWWG owns a portfolio of brands including Hackett, Pepe Jeans and Façonnable. This investment is intended to leverage AWWG’s expertise and provide for synergies to support the Company’s international expansion priority through the development of its operational platform in Europe. ​ In July 2024, the Company acquired an additional 6.6 % minority interest in AWWG for € 27.1 million ($ 29.1 million), increasing its total ownership interest to 18.7 %. The investment in AWWG is owned by G-III Foreign Holdings B.V., a wholly-owned subsidiary of the Company. G-III Foreign Holdings B.V. reports results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. ​ Prior to the additional investment made in July 2024, the Company accounted for its investment in AWWG using the cost method and the investment was classified in other assets, net in the Company’s condensed consolidated balance sheet. As of the date of the additional investment made in July 2024, the Company determined it has significant influence in accordance with ASC 323 and, as a result, converted the accounting for the investment from the cost method to the equity method of accounting. The investment is classified in investments in unconsolidated affiliates in the Company’s condensed consolidated balance sheet as of October 31, 2024. ​ 17 Table of Contents 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, 2024. ​ Issued Accounting Guidance Being Evaluated for Adoption ​ In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The ASU expands the scope and frequency of segment disclosures and introduces the concept of a “significant expense principle,” which requires entities to disclose significant expense categories and amounts that are regularly provided to the chief operating decision maker (“CODM”) and included within the reported measure of a segment’s profit or loss. The ASU also changes current disclosure requirements by allowing entities to report multiple measures of a segment’s profit or loss, provided the reported measures are used by the CODM to assess performance and allocate resources and that the measure closest to GAAP is also provided. Finally, the ASU requires all segment profit or loss and assets disclosures to be provided on both an annual and interim basis and requires entities to disclose the title and position of the individual identified as the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and shall be applied retrospectively to all periods presented in the financial statements. The Company is currently evaluating the standard and determining the extent of additional interim and annual segment disclosures that may be required. ​ In December 2023, the FASB issued ASU 2023-09 , “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. The ASU requires public companies to disclose, on an annual basis, a tabular reconciliation of the effective tax rate to the statutory rate for federal, state and foreign income taxes. It also requires greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold. In addition, the ASU requires public companies to disclose their income tax payments (net of refunds received), disaggregated between federal, state/local and foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the standard and determining the extent of additional disclosures that may be required. ​ In November 2024, the FASB issued ASU 2024-03 , “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. The ASU requires public entities to disclose more detailed information about certain costs and expenses presented in the income statement, including inventory purchases, employee compensation, selling expenses, depreciation and intangible asset amortization. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The amendments in this ASU should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and related disclosures. ​ 18 Table of Contents