{"url_path":"/sec/giii/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Financial Statements.","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-06-08","source_url":"https://www.sec.gov/Archives/edgar/data/821002/0001104659-26-071371-index.html","accession_number":"0001104659-26-071371","cik":"0000821002","ticker":"GIII","issuer_name":"G III APPAREL GROUP LTD /DE/","edgar_url":"https://www.sec.gov/Archives/edgar/data/821002/0001104659-26-071371-index.html","primary_entity_key":"0000821002","primary_entity_name":"G III APPAREL GROUP LTD /DE/"},"word_count":9156,"has_tables":true,"body_markdown":"Item 1.          Financial Statements.\n\nG-III APPAREL GROUP, LTD. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED BALANCE SHEETS\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**April 30,**\n\n​\n\n**April 30,**\n\n​\n\n**January 31,**\n\n​\n\n​\n\n**2026**\n\n​\n\n**2025**\n\n​\n\n**2026**\n\n​\n\n  ​ ​ ​\n\n**(Unaudited)**\n\n  ​ ​ ​\n\n**(Unaudited)**\n\n  ​ ​ ​\n\n​\n\n​\n\n​\n\n​\n\n**(In thousands, except per share amounts)**\n\n**ASSETS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent assets\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash and cash equivalents\n\n​\n\n$\n\n394,220\n\n​\n\n$\n\n257,785\n\n​\n\n$\n\n406,662\n\nAccounts receivable, net of allowance for doubtful accounts of $18,749, $10,189 and $19,038, respectively\n\n​\n\n​\n\n432,855\n\n​\n\n​\n\n481,056\n\n​\n\n​\n\n537,045\n\nInventories\n\n​\n\n​\n\n417,856\n\n​\n\n​\n\n456,482\n\n​\n\n​\n\n460,029\n\nPrepaid income taxes\n\n​\n\n​\n\n9,087\n\n​\n\n​\n\n5,031\n\n​\n\n​\n\n12,288\n\nPrepaid expenses and other current assets\n\n​\n\n​\n\n191,512\n\n​\n\n​\n\n50,711\n\n​\n\n​\n\n53,023\n\nTotal current assets\n\n​\n\n​\n\n1,445,530\n\n​\n\n​\n\n1,251,065\n\n​\n\n​\n\n1,469,047\n\nInvestments in unconsolidated affiliates\n\n​\n\n​\n\n108,289\n\n​\n\n​\n\n111,182\n\n​\n\n​\n\n110,226\n\nProperty and equipment, net\n\n​\n\n​\n\n79,167\n\n​\n\n​\n\n72,819\n\n​\n\n​\n\n78,042\n\nOperating lease assets\n\n​\n\n​\n\n263,276\n\n​\n\n​\n\n253,884\n\n​\n\n​\n\n257,619\n\nOther assets, net\n\n​\n\n​\n\n23,156\n\n​\n\n​\n\n66,307\n\n​\n\n​\n\n23,903\n\nOther intangibles, net\n\n​\n\n​\n\n24,493\n\n​\n\n​\n\n26,475\n\n​\n\n​\n\n25,564\n\nDeferred income tax assets, net\n\n​\n\n​\n\n7,201\n\n​\n\n​\n\n15,482\n\n​\n\n​\n\n7,510\n\nTrademarks\n\n​\n\n​\n\n633,873\n\n​\n\n​\n\n618,659\n\n​\n\n​\n\n638,909\n\nTotal assets\n\n​\n\n$\n\n2,584,985\n\n​\n\n$\n\n2,415,873\n\n​\n\n$\n\n2,610,820\n\n**LIABILITIES AND STOCKHOLDERS' EQUITY**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent liabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent portion of notes payable\n\n​\n\n$\n\n11,044\n\n​\n\n$\n\n11,959\n\n​\n\n$\n\n7,104\n\nAccounts payable\n\n​\n\n​\n\n192,283\n\n​\n\n​\n\n200,721\n\n​\n\n​\n\n264,005\n\nAccrued expenses\n\n​\n\n​\n\n117,266\n\n​\n\n​\n\n100,486\n\n​\n\n​\n\n138,493\n\nCustomer refund liabilities\n\n​\n\n​\n\n65,778\n\n​\n\n​\n\n59,811\n\n​\n\n​\n\n76,308\n\nCurrent operating lease liabilities\n\n​\n\n​\n\n54,380\n\n​\n\n​\n\n49,687\n\n​\n\n​\n\n52,244\n\nIncome tax payable\n\n​\n\n​\n\n13,862\n\n​\n\n​\n\n10,189\n\n​\n\n​\n\n7,135\n\nOther current liabilities\n\n​\n\n​\n\n375\n\n​\n\n​\n\n703\n\n​\n\n​\n\n376\n\nTotal current liabilities\n\n​\n\n​\n\n454,988\n\n​\n\n​\n\n433,556\n\n​\n\n​\n\n545,665\n\nNotes payable\n\n​\n\n​\n\n4,363\n\n​\n\n​\n\n6,783\n\n​\n\n​\n\n4,638\n\nDeferred income tax liabilities, net\n\n​\n\n​\n\n60,227\n\n​\n\n​\n\n50,121\n\n​\n\n​\n\n61,387\n\nNoncurrent operating lease liabilities\n\n​\n\n​\n\n223,778\n\n​\n\n​\n\n220,235\n\n​\n\n​\n\n220,713\n\nOther noncurrent liabilities\n\n​\n\n​\n\n17,504\n\n​\n\n​\n\n21,084\n\n​\n\n​\n\n18,094\n\nTotal liabilities\n\n​\n\n​\n\n760,860\n\n​\n\n​\n\n731,779\n\n​\n\n​\n\n850,497\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nStockholders' Equity\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nPreferred stock; 1,000 shares authorized; no shares issued\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nCommon stock - $0.01 par value; 120,000 shares authorized; 49,396, 49,396 and 49,396 shares issued, respectively\n\n​\n\n​\n\n264\n\n​\n\n​\n\n264\n\n​\n\n​\n\n264\n\nAdditional paid-in capital\n\n​\n\n​\n\n485,780\n\n​\n\n​\n\n463,225\n\n​\n\n​\n\n476,005\n\nAccumulated other comprehensive income (loss)\n\n​\n\n​\n\n15,605\n\n​\n\n​\n\n(9,402)\n\n​\n\n​\n\n23,920\n\nRetained earnings\n\n​\n\n​\n\n1,479,127\n\n​\n\n​\n\n1,361,437\n\n​\n\n​\n\n1,416,812\n\nCommon stock held in treasury, at cost - 7,205, 6,102 and 7,206 shares, respectively\n\n​\n\n​\n\n(156,651)\n\n​\n\n​\n\n(131,430)\n\n​\n\n​\n\n(156,678)\n\nTotal stockholders' equity\n\n​\n\n​\n\n1,824,125\n\n​\n\n​\n\n1,684,094\n\n​\n\n​\n\n1,760,323\n\nTotal liabilities and stockholders' equity\n\n​\n\n$\n\n2,584,985\n\n​\n\n$\n\n2,415,873\n\n​\n\n$\n\n2,610,820\n\n*The accompanying notes are an integral part of these statements**.*\n\n​\n\n3\n\n[Table of Contents](#TOC)\n\nG-III APPAREL GROUP, LTD. AND SUBSIDIARIES\n\nCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended April 30,**\n\n​\n\n​\n\n**2026**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**(Unaudited)**\n\n​\n\n​\n\n**(In thousands, except per share amounts)**\n\nNet sales\n\n​\n\n$\n\n535,962\n\n​\n\n$\n\n583,609\n\nCost of goods sold\n\n​\n\n​\n\n188,216\n\n​\n\n​\n\n337,065\n\nGross profit\n\n​\n\n​\n\n347,746\n\n​\n\n​\n\n246,544\n\nSelling, general and administrative expenses\n\n​\n\n​\n\n255,323\n\n​\n\n​\n\n231,495\n\nDepreciation and amortization\n\n​\n\n​\n\n7,188\n\n​\n\n​\n\n6,573\n\nOperating profit\n\n​\n\n​\n\n85,235\n\n​\n\n​\n\n8,476\n\nOther income (loss)\n\n​\n\n​\n\n(802)\n\n​\n\n​\n\n3,462\n\nInterest and financing charges, net\n\n​\n\n​\n\n1,174\n\n​\n\n​\n\n(461)\n\nIncome before income taxes\n\n​\n\n​\n\n85,607\n\n​\n\n​\n\n11,477\n\nIncome tax expense\n\n​\n\n​\n\n19,073\n\n​\n\n​\n\n3,718\n\nNet income\n\n​\n\n$\n\n66,534\n\n​\n\n$\n\n7,759\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**NET INCOME PER COMMON SHARE:**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income per common share\n\n​\n\n$\n\n1.58\n\n​\n\n$\n\n0.18\n\nWeighted average number of shares outstanding\n\n​\n\n​\n\n42,189\n\n​\n\n​\n\n43,748\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDiluted:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income per common share\n\n​\n\n$\n\n1.50\n\n​\n\n$\n\n0.17\n\nWeighted average number of shares outstanding\n\n​\n\n​\n\n44,394\n\n​\n\n​\n\n45,385\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income\n\n​\n\n$\n\n66,534\n\n​\n\n$\n\n7,759\n\nOther comprehensive income (loss):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nForeign currency translation adjustments\n\n​\n\n​\n\n(8,315)\n\n​\n\n​\n\n16,117\n\nOther comprehensive income (loss)\n\n​\n\n​\n\n(8,315)\n\n​\n\n​\n\n16,117\n\nComprehensive income\n\n​\n\n$\n\n58,219\n\n​\n\n$\n\n23,876\n\n​\n\n*The accompanying notes are an integral part of these statements.*\n\n​\n\n4\n\n[Table of Contents](#TOC)\n\n**G-III APPAREL GROUP, LTD. AND SUBSIDIARIES**\n\n​\n\n**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Accumulated**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Additional**\n\n​\n\n**Other**\n\n​\n\n​\n\n​\n\n​\n\n**Common Stock**\n\n​\n\n​\n\n​\n\n**Common Stock**\n\n​\n\n**Paid-In**\n\n​\n\n**Comprehensive**\n\n​\n\n**Retained**\n\n​\n\n**Held In Treasury**\n\n​\n\n​\n\n​\n\n**Shares**\n\n​\n\n**Amount**\n\n  ​ ​ ​\n\n**Capital**\n\n  ​ ​ ​\n\n**Income (Loss)**\n\n  ​ ​ ​\n\n**Earnings**\n\n  ​ ​ ​\n\n**Shares**\n\n​\n\n**Amount**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n**(Unaudited)**\n\n​\n\n**(In thousands)**\n\nBalance as of January 31, 2026\n\n49,396\n\n​\n\n$\n\n264\n\n​\n\n$\n\n476,005\n\n​\n\n$\n\n23,920\n\n​\n\n$\n\n1,416,812\n\n​\n\n7,206\n\n​\n\n$\n\n(156,678)\n\n​\n\n$\n\n1,760,323\n\nEquity awards vested, net\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(66)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n(1)\n\n​\n\n​\n\n27\n\n​\n\n​\n\n(39)\n\nShare-based compensation expense\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n9,841\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n9,841\n\nOther comprehensive loss, net\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(8,315)\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(8,315)\n\nCash dividends declared on common stock ($0.10 per share)\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(4,219)\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(4,219)\n\nNet income\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n66,534\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n66,534\n\nBalance as of April 30, 2026\n\n49,396\n\n​\n\n$\n\n264\n\n​\n\n$\n\n485,780\n\n​\n\n$\n\n15,605\n\n​\n\n$\n\n1,479,127\n\n​\n\n7,205\n\n​\n\n$\n\n(156,651)\n\n​\n\n$\n\n1,824,125\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of January 31, 2025\n\n49,396\n\n​\n\n$\n\n264\n\n​\n\n$\n\n467,692\n\n​\n\n$\n\n(25,519)\n\n​\n\n$\n\n1,353,678\n\n​\n\n5,509\n\n​\n\n$\n\n(116,634)\n\n​\n\n$\n\n1,679,481\n\nEquity awards vested, net\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(5,043)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n(214)\n\n​\n\n​\n\n5,043\n\n​\n\n​\n\n—\n\nShare-based compensation expense\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n5,520\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n5,520\n\nTaxes paid for net share settlements\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(4,944)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(4,944)\n\nOther comprehensive income, net\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n16,117\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n16,117\n\nRepurchases of common stock\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n807\n\n​\n\n​\n\n(19,701)\n\n​\n\n​\n\n(19,701)\n\nExcise tax on stock repurchases\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n—\n\n​\n\n​\n\n(138)\n\n​\n\n​\n\n(138)\n\nNet income\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n7,759\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n7,759\n\nBalance as of April 30, 2025\n\n49,396\n\n​\n\n$\n\n264\n\n​\n\n$\n\n463,225\n\n​\n\n$\n\n(9,402)\n\n​\n\n$\n\n1,361,437\n\n​\n\n6,102\n\n​\n\n$\n\n(131,430)\n\n​\n\n$\n\n1,684,094\n\n​\n\n*The accompanying notes are an integral part of these statements.*\n\n​\n\n5\n\n[Table of Contents](#TOC)\n\n​\n\n​\n\n**G-III APPAREL GROUP, LTD. AND SUBSIDIARIES**\n\n​\n\n**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended April 30,**\n\n​\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**(Unaudited, in thousands)**\n\nCash flows from operating activities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nNet income\n\n​\n\n$\n\n66,534\n\n​\n\n$\n\n7,759\n\nAdjustments to reconcile net income to net cash provided by (used in) operating activities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDepreciation and amortization\n\n​\n\n​\n\n7,188\n\n​\n\n​\n\n6,573\n\nLoss on disposal of fixed assets\n\n​\n\n​\n\n258\n\n​\n\n​\n\n147\n\nNon-cash operating lease costs\n\n​\n\n​\n\n14,449\n\n​\n\n​\n\n14,002\n\nEquity gain in unconsolidated affiliates\n\n​\n\n​\n\n42\n\n​\n\n​\n\n(1,590)\n\nShare-based compensation\n\n​\n\n​\n\n9,841\n\n​\n\n​\n\n5,520\n\nDeferred financing charges and debt discount amortization\n\n​\n\n​\n\n313\n\n​\n\n​\n\n313\n\nDeferred income taxes\n\n​\n\n​\n\n(852)\n\n​\n\n​\n\n1,995\n\nChanges in operating assets and liabilities:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nAccounts receivable, net\n\n​\n\n​\n\n104,190\n\n​\n\n​\n\n143,696\n\nInventories\n\n​\n\n​\n\n42,173\n\n​\n\n​\n\n21,604\n\nIncome taxes, net\n\n​\n\n​\n\n9,928\n\n​\n\n​\n\n(3,041)\n\nPrepaid expenses and other current assets\n\n​\n\n​\n\n(138,734)\n\n​\n\n​\n\n(1,576)\n\nOther assets, net\n\n​\n\n​\n\n158\n\n​\n\n​\n\n542\n\nCustomer refund liabilities\n\n​\n\n​\n\n(10,530)\n\n​\n\n​\n\n(20,174)\n\nOperating lease liabilities\n\n​\n\n​\n\n(14,898)\n\n​\n\n​\n\n(14,345)\n\nAccounts payable, accrued expenses and other liabilities\n\n​\n\n​\n\n(92,031)\n\n​\n\n​\n\n(67,627)\n\nNet cash provided by (used in) operating activities\n\n​\n\n​\n\n(1,971)\n\n​\n\n​\n\n93,798\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash flows from investing activities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating lease assets initial direct costs\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(18)\n\nInvestment in equity interest of private company\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(732)\n\nCapital expenditures\n\n​\n\n​\n\n(8,455)\n\n​\n\n​\n\n(8,075)\n\nNet cash used in investing activities\n\n​\n\n​\n\n(8,455)\n\n​\n\n​\n\n(8,825)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash flows from financing activities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nRepayment of borrowings - foreign facilities\n\n​\n\n​\n\n(176,042)\n\n​\n\n​\n\n(32,441)\n\nProceeds from borrowings - foreign facilities\n\n​\n\n​\n\n180,018\n\n​\n\n​\n\n44,453\n\nDividends paid on common stock\n\n​\n\n​\n\n(4,219)\n\n​\n\n​\n\n—\n\nPurchase of treasury shares\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(19,701)\n\nTaxes paid for net share settlements\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(4,944)\n\nNet cash used in financing activities\n\n​\n\n​\n\n(243)\n\n​\n\n​\n\n(12,633)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nForeign currency translation adjustments\n\n​\n\n​\n\n(1,773)\n\n​\n\n​\n\n4,005\n\nNet increase (decrease) in cash and cash equivalents\n\n​\n\n​\n\n(12,442)\n\n​\n\n​\n\n76,345\n\nCash and cash equivalents at beginning of period\n\n​\n\n​\n\n406,662\n\n​\n\n​\n\n181,440\n\nCash and cash equivalents at end of period\n\n​\n\n$\n\n394,220\n\n​\n\n$\n\n257,785\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nSupplemental disclosures of cash flow information\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCash payments:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nInterest, net\n\n​\n\n$\n\n793\n\n​\n\n$\n\n978\n\nIncome tax payments, net\n\n​\n\n$\n\n8,698\n\n​\n\n$\n\n6,471\n\nExcise tax liability related to stock repurchases\n\n​\n\n$\n\n—\n\n​\n\n$\n\n138\n\n​\n\n*The accompanying notes are an integral part of these statements**.*\n\n​\n\n6\n\n[Table of Contents](#TOC)\n\n​\n\n**G-III APPAREL GROUP, LTD. AND SUBSIDIARIES**\n\n​\n\nNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS\n\n**NOTE 1 – BASIS OF PRESENTATION**\n\n​\n\nAs 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, distributes 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.\n\n​\n\nThe Company consolidates the accounts of its wholly-owned and majority-owned subsidiaries. AWWG Investments B.V. (“AWWG”) is a Dutch corporation that is 18.7% owned by the Company and is accounted for under the equity method of accounting. All material intercompany balances and transactions have been eliminated.\n\n​\n\nKarl 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, certain other subsidiaries of the Company 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, certain other subsidiaries of the Company 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 three-month period ended April 30, 2026, the results of KLH, Vilebrequin, certain other subsidiaries of the Company and AWWG are included for the three-month period ended March 31, 2026. The Company’s retail operations segment reports on a 52/53 week fiscal year. For fiscal 2027 and 2026, the three-month periods for the retail operations segment were each 13-week periods, respectively, and ended on May 2, 2026 and May 3, 2025, respectively.\n\n​\n\nThe results for the three months ended April 30, 2026 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.\n\n​\n\nThe 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, 2026 filed with the Securities and Exchange Commission (the “SEC”).\n\n​\n\nAssets 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 income (loss) within stockholders’ equity.\n\n​\n\n7\n\n[Table of Contents](#TOC)\n\n**NOTE 2 – ALLOWANCE FOR DOUBTFUL ACCOUNTS**\n\n​\n\nThe 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.\n\n​\n\nThe Company’s accounts receivable and allowance for doubtful accounts as of April 30, 2026, April 30, 2025 and January 31, 2026 were:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**April 30, 2026**\n\n​\n\n  ​ ​ ​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nAccounts receivable, gross\n\n​\n\n$\n\n450,311\n\n​\n\n$\n\n1,293\n\n​\n\n$\n\n451,604\n\nAllowance for doubtful accounts\n\n​\n\n​\n\n(18,681)\n\n​\n\n​\n\n(68)\n\n​\n\n​\n\n(18,749)\n\nAccounts receivable, net\n\n​\n\n$\n\n431,630\n\n​\n\n$\n\n1,225\n\n​\n\n$\n\n432,855\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**April 30, 2025**\n\n​\n\n​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nAccounts receivable, gross\n\n​\n\n$\n\n490,136\n\n​\n\n$\n\n1,109\n\n​\n\n$\n\n491,245\n\nAllowance for doubtful accounts\n\n​\n\n​\n\n(10,121)\n\n​\n\n​\n\n(68)\n\n​\n\n​\n\n(10,189)\n\nAccounts receivable, net\n\n​\n\n$\n\n480,015\n\n​\n\n$\n\n1,041\n\n​\n\n$\n\n481,056\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**January 31, 2026**\n\n​\n\n​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nAccounts receivable, gross\n\n​\n\n$\n\n555,038\n\n​\n\n$\n\n1,045\n\n​\n\n$\n\n556,083\n\nAllowance for doubtful accounts\n\n​\n\n​\n\n(18,970)\n\n​\n\n​\n\n(68)\n\n​\n\n​\n\n(19,038)\n\nAccounts receivable, net\n\n​\n\n$\n\n536,068\n\n​\n\n$\n\n977\n\n​\n\n$\n\n537,045\n\n​\n\nThe allowance for doubtful accounts for wholesale trade receivables is estimated based on several factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (such as in the case of bankruptcy filings (including potential bankruptcy filings), extensive delay in payment or substantial downgrading by credit rating agencies), a specific reserve for bad debt is recorded against amounts due from that customer to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other wholesale customers, an allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the end of the reporting period for financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. The Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.\n\n​\n\nThe allowance for doubtful accounts for retail trade receivables is estimated at the credit card chargeback rate applied to the previous 90 days of credit card sales. In addition, the Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.\n\n​\n\n8\n\n[Table of Contents](#TOC)\n\nThe Company had the following activity in its allowance for doubtful accounts:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nBalance as of January 31, 2026\n\n​\n\n$\n\n(18,970)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(19,038)\n\nProvision for credit losses, net\n\n​\n\n​\n\n227\n\n​\n\n​\n\n—\n\n​\n\n​\n\n227\n\nAccounts written off as uncollectible\n\n​\n\n​\n\n62\n\n​\n\n​\n\n—\n\n​\n\n​\n\n62\n\nBalance as of April 30, 2026\n\n​\n\n$\n\n(18,681)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(18,749)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of January 31, 2025\n\n​\n\n$\n\n(7,520)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(7,588)\n\nProvision for credit losses, net\n\n​\n\n​\n\n(2,601)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(2,601)\n\nAccounts written off as uncollectible\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\n​\n\n​\n\n—\n\nBalance as of April 30, 2025\n\n​\n\n$\n\n(10,121)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(10,189)\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBalance as of January 31, 2025\n\n​\n\n$\n\n(7,520)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(7,588)\n\nProvision for credit losses, net\n\n​\n\n​\n\n(19,778)\n\n​\n\n​\n\n—\n\n​\n\n​\n\n(19,778)\n\nAccounts written off as uncollectible\n\n​\n\n​\n\n8,328\n\n​\n\n​\n\n—\n\n​\n\n​\n\n8,328\n\nBalance as of January 31, 2026\n\n​\n\n$\n\n(18,970)\n\n​\n\n$\n\n(68)\n\n​\n\n$\n\n(19,038)\n\n​\n\n​\n\n**NOTE 3 – INVENTORIES**\n\n​\n\nWholesale 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.\n\n​\n\nThe inventory return asset, which consists of the amount of goods that are anticipated to be returned by customers, was $9.0 million, $7.8 million and $12.2 million as of April 30, 2026, April 30, 2025 and January 31, 2026, respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.\n\n​\n\nInventory held on consignment by the Company’s customers totaled $4.3 million, $5.6 million and $4.4 million as of April 30, 2026, April 30, 2025 and January 31, 2026, respectively. The Company reflects consigned inventory within inventories on its condensed consolidated balance sheets.\n\n​\n\n**NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS**\n\n​\n\nGenerally 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:\n\n​\n\n●Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets.\n\n​\n\n●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.\n\n​\n\n●Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement.\n\n9\n\n[Table of Contents](#TOC)\n\nThe following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Carrying**** ****Value**\n\n​\n\n**Fair Value**\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**April 30,**\n\n​\n\n**April 30,**\n\n​\n\n**January 31,**\n\n  ​ ​ ​\n\n**April 30,**\n\n​\n\n**April 30,**\n\n​\n\n**January 31,**\n\n**Financial**** ****Instrument**\n\n​\n\n**Level**\n\n​\n\n**2026**\n\n​\n\n**2025**\n\n​\n\n**2026**\n\n​\n\n**2026**\n\n​\n\n**2025**\n\n​\n\n**2026**\n\n​\n\n​\n\n​\n\n​\n\n**(In**** ****thousands)**\n\nUnsecured loans\n\n​\n\n2\n\n​\n\n$\n\n2,695\n\n​\n\n$\n\n5,336\n\n​\n\n$\n\n3,468\n\n​\n\n$\n\n2,696\n\n​\n\n$\n\n5,336\n\n​\n\n$\n\n3,468\n\nOverdraft facilities\n\n​\n\n2\n\n​\n\n​\n\n8,110\n\n​\n\n​\n\n7,995\n\n​\n\n​\n\n3,578\n\n​\n\n​\n\n8,110\n\n​\n\n​\n\n7,995\n\n​\n\n​\n\n3,578\n\nForeign credit facilities\n\n​\n\n2\n\n​\n\n​\n\n4,602\n\n​\n\n​\n\n5,411\n\n​\n\n​\n\n4,696\n\n​\n\n​\n\n4,602\n\n​\n\n​\n\n5,411\n\n​\n\n​\n\n4,696\n\n​\n\nThe 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.\n\n​\n\n*Non-Financial Assets and Liabilities*\n\n​\n\nThe 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.\n\n​\n\n**NOTE 5 – LEASES**\n\n​\n\nThe 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.\n\n​\n\nMost 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.\n\n​\n\nCertain of the Company’s lease agreements include contingent rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Contingent rent is accrued each period as the liabilities are incurred. The Company’s leases do not contain any material residual value guarantees or material restrictive covenants.\n\n​\n\nThe Company’s operating lease assets and liabilities as of April 30, 2026, April 30, 2025 and January 31, 2026 consist of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Leases**\n\n​\n\n**Classification**\n\n​\n\n**April 30, 2026**\n\n​\n\n**April 30, 2025**\n\n​\n\n**January 31, 2026**\n\n​\n\n​\n\n​\n\n​\n\n**(In thousands)**\n\nAssets\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nOperating\n\n​\n\nOperating lease assets\n\n​\n\n$\n\n263,276\n\n​\n\n$\n\n253,884\n\n​\n\n$\n\n257,619\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nLiabilities\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCurrent operating\n\n​\n\nCurrent operating lease liabilities\n\n​\n\n$\n\n54,380\n\n​\n\n$\n\n49,687\n\n​\n\n$\n\n52,244\n\nNoncurrent operating\n\n​\n\nNoncurrent operating lease liabilities\n\n​\n\n​\n\n223,778\n\n​\n\n​\n\n220,235\n\n​\n\n​\n\n220,713\n\nTotal lease liabilities\n\n​\n\n​\n\n​\n\n$\n\n278,158\n\n​\n\n$\n\n269,922\n\n​\n\n$\n\n272,957\n\n​\n\n10\n\n[Table of Contents](#TOC)\n\nThe Company recorded lease costs of $18.6 million and $18.2 million during the three months ended April 30, 2026 and 2025, respectively. Lease costs are recorded within selling, general and administrative expenses in the Company’s condensed consolidated statements of income and comprehensive income. The Company recorded variable lease costs and short-term lease costs of $3.9 million and $3.5 million for the three months ended April 30, 2026 and 2025, respectively. Short-term lease costs are immaterial.\n\n​\n\nAs of April 30, 2026, the Company’s maturity of operating lease liabilities in the years ending up to January 31, 2031 and thereafter are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Year Ending January 31,**\n\n​\n\n**Amount**\n\n​\n\n​\n\n**(In thousands)**\n\n2027\n\n​\n\n$\n\n52,554\n\n2028\n\n​\n\n​\n\n64,420\n\n2029\n\n​\n\n​\n\n52,188\n\n2030\n\n​\n\n​\n\n37,310\n\n2031\n\n​\n\n​\n\n32,031\n\nAfter 2031\n\n​\n\n​\n\n96,688\n\nTotal lease payments\n\n​\n\n$\n\n335,191\n\nLess: Interest\n\n​\n\n​\n\n57,033\n\nPresent value of lease liabilities\n\n​\n\n$\n\n278,158\n\n​\n\nAs of April 30, 2026, there are no material leases that are legally binding but have not yet commenced.\n\n​\n\nAs of April 30, 2026, the weighted average remaining lease term related to operating leases is 6.2 years. The weighted average discount rate related to operating leases is 6.0%.\n\n​\n\nCash paid for amounts included in the measurement of operating lease liabilities was $19.1 million and $19.3 million during the three months ended April 30, 2026 and 2025, respectively. Right-of-use assets obtained in exchange for lease obligations were $22.4 million and $8.7 million during the three months ended April 30, 2026 and 2025, respectively.\n\n​\n\n**NOTE 6 – NET INCOME PER COMMON SHARE**\n\n​\n\nBasic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share, when applicable, is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards outstanding during the period. Approximately 340,000 and 5,400 shares of common stock have been excluded from the diluted net income per share calculation for the three months ended April 30, 2026 and 2025, respectively. All share-based payments outstanding that vest based on the achievement of performance conditions, and for which the respective performance conditions have not been achieved, have been excluded from the diluted per share calculation.\n\n​\n\nThe following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended April 30,**\n\n​\n\n  ​ ​ ​\n\n**2026**\n\n  ​ ​ ​\n\n**2025**\n\n​\n\n​\n\n**(In**** ****thousands, except share and per share amounts)**\n\nNet income\n\n​\n\n$\n\n66,534\n\n​\n\n$\n\n7,759\n\nBasic net income per share:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic common shares\n\n​\n\n​\n\n42,189\n\n​\n\n​\n\n43,748\n\nBasic net income per share\n\n​\n\n$\n\n1.58\n\n​\n\n$\n\n0.18\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nDiluted net income per share:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nBasic common shares\n\n​\n\n​\n\n42,189\n\n​\n\n​\n\n43,748\n\nDilutive restricted stock unit awards and stock options\n\n​\n\n​\n\n2,205\n\n​\n\n​\n\n1,637\n\nDiluted common shares\n\n​\n\n​\n\n44,394\n\n​\n\n​\n\n45,385\n\nDiluted net income per share\n\n​\n\n$\n\n1.50\n\n​\n\n$\n\n0.17\n\n​\n\n​\n\n11\n\n[Table of Contents](#TOC)\n\n**NOTE 7 – NOTES PAYABLE**\n\n​\n\nLong-term debt consists of the following:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**April 30, 2026**\n\n  ​ ​ ​\n\n**April 30, 2025**\n\n  ​ ​ ​\n\n**January 31, 2026**\n\n​\n\n​\n\n**(In thousands)**\n\nUnsecured loans\n\n​\n\n$\n\n2,695\n\n​\n\n$\n\n5,336\n\n​\n\n$\n\n3,468\n\nOverdraft facilities\n\n​\n\n​\n\n8,110\n\n​\n\n​\n\n7,995\n\n​\n\n​\n\n3,578\n\nForeign credit facilities\n\n​\n\n​\n\n4,602\n\n​\n\n​\n\n5,411\n\n​\n\n​\n\n4,696\n\nSubtotal\n\n​\n\n​\n\n15,407\n\n​\n\n​\n\n18,742\n\n​\n\n​\n\n11,742\n\nLess: Current portion of long-term debt\n\n​\n\n​\n\n(11,044)\n\n​\n\n​\n\n(11,959)\n\n​\n\n​\n\n(7,104)\n\nTotal\n\n​\n\n$\n\n4,363\n\n​\n\n$\n\n6,783\n\n​\n\n$\n\n4,638\n\n​\n\n*Third Amended and Restated ABL Credit Agreement*\n\n​\n\nOn 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 $700.0 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.\n\n​\n\nThe 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 $650.0 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.\n\n​\n\nAmounts 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 April 30, 2026, interest under the Third ABL Credit Agreement was being paid at an average rate of 7.25% per annum.\n\n​\n\nThe 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.\n\n​\n\nThe 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 April 30, 2026, the Company was in compliance with these covenants.\n\n​\n\n12\n\n[Table of Contents](#TOC)\n\nAs of April 30, 2026, the Company had no borrowings outstanding under the Third ABL Credit Agreement. The Third ABL Credit Agreement also includes amounts available for letters of credit. As of April 30, 2026, there were no outstanding trade letters of credit and $2.4 million of standby letters of credit.\n\n​\n\nThe Company has a total of $6.3 million debt issuance costs related to its Third ABL Credit Agreement. As permitted under Accounting Standards Codification (“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. Total debt issuance costs, net of amortization, were $3.9 million, $5.1 million and $4.2 million as of April 30, 2026, April 30, 2025 and January 31, 2026.\n\n​\n\n*Unsecured Loans*\n\n​\n\nSeveral of the Company’s foreign entities borrow funds under various unsecured loans to provide funding for operations in the normal course of business. In the aggregate, the Company is currently required to make quarterly installment payments of principal in the amount of €0.8 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 April 30, 2026, the Company had an aggregate outstanding balance of €2.3 million ($2.7 million) under these unsecured loans.\n\n​\n\n*Overdraft Facilities*\n\n​\n\nCertain 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 (“EURIBOR”) plus a margin of 1.75% per annum, payable quarterly. The facility may be cancelled at any time by the Company or HSBC Bank. Additionally, certain of the Company’s foreign entities entered into 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 April 30, 2026, the Company had an aggregate outstanding balance of €7.0 million ($8.1 million) under these various facilities.\n\n​\n\n*Foreign Credit Facilities*\n\n​\n\nKLH 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%. A subsidiary of Vilebrequin has a credit agreement with CIC Bank with a credit limit of €5.0 million. Borrowings bear interest at the Euro Short-Term Rate plus a margin of 1.75%. As of April 30, 2026, the Company had an aggregate outstanding balance of €4.0 million ($4.6 million) under these credit facilities.\n\n​\n\n**NOTE 8 – SUPPLY CHAIN FINANCE PROGRAM**\n\n​\n\nThe Company has a voluntary supply chain finance program (the “SCF Program”) administered through a third-party platform. The Company’s payment obligations confirmed under the SCF Program are due to a financial intermediary that will remit payment to the Company’s suppliers. The SCF Program also provides participating suppliers with the option to sell their receivables due from the Company, at their sole discretion, to a third-party financial institution at terms negotiated between the supplier and the financial institution. The Company is not a party to the agreements between the suppliers and the financial institution. The Company’s payment obligations to its suppliers, including the amounts due and payment terms, which generally do not exceed 75 days, are not impacted by a suppliers’ participation in the SCF Program. There are no assets pledged as security or other forms of guarantees provided specifically under the SCF Program, however the obligations under the SCF Program benefit from guarantees and collateral provided under our revolving credit facility to which the financial institutions involved in the SCF Program are a party.\n\n​\n\nThe Company’s outstanding payment obligations under its SCF Program are recorded within accounts payable in the Company’s condensed consolidated balance sheets and the corresponding payments are reflected in cash flows from operating activities within the Company’s condensed consolidated statements of cash flows. The Company had $95.5 million and $45.0 million of payment obligations outstanding under the SCF Program as of April 30, 2026 and 2025,\n\n13\n\n[Table of Contents](#TOC)\n\nrespectively. The Company settled obligations of $166.6 million and $41.8 million through the SCF Program during the three months ended April 30, 2026 and 2025, respectively.\n\n​\n\n​\n\n**NOTE 9 – REVENUE RECOGNITION**\n\n​\n\n*Disaggregation of Revenue*\n\n​\n\nIn 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.\n\n​\n\n*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 Karl Lagerfeld and Vilebrequin businesses, including from retail stores operated by Karl Lagerfeld and Vilebrequin, other than sales of product under the Karl Lagerfeld Paris brand generated by the Company’s retail stores and digital platforms. 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 trademarks associated with the Company’s owned brands. As of April 30, 2026, revenues from license agreements related to trademarks associated with the Company’s owned brands represented an insignificant portion of wholesale revenues.\n\n​\n\n*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 in North America. 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.\n\n​\n\n*Contract Liabilities*\n\n​\n\nThe 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. Total contract liabilities were $5.0 million, $4.8 million and $6.2 million at April 30, 2026, April 30, 2025 and January 31, 2026, respectively. The Company recognized $4.3 million in revenue for the three months ended April 30, 2026 related to contract liabilities that existed at January 31, 2026. The Company recognized $4.5 million in revenue for the three months ended April 30, 2025 related to contract liabilities that existed at January 31, 2025. There were no contract assets recorded as of April 30, 2026, April 30, 2025 and January 31, 2026. Substantially all of the advance payments from licensees as of April 30, 2026 are expected to be recognized as revenue within the next twelve months.\n\n​\n\n**NOTE 10 – SEGMENTS**\n\n​\n\nThe 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,\n\n14\n\n[Table of Contents](#TOC)\n\nDonna Karan, Karl Lagerfeld Paris, G.H. Bass and Wilsons Leather. Substantially all DKNY and Karl Lagerfeld Paris stores are operated as outlet stores in North America.\n\n​\n\nThe 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.\n\n​\n\nThe following segment information is presented for the three month periods indicated below:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended April 30, 2026**\n\n​\n\n  ​ ​ ​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Elimination**(1)\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nNet sales\n\n​\n\n$\n\n514,804\n\n​\n\n$\n\n40,600\n\n​\n\n$\n\n(19,442)\n\n​\n\n$\n\n535,962\n\nCost of goods sold\n\n​\n\n​\n\n186,557\n\n(2)\n\n​\n\n21,101\n\n​\n\n​\n\n(19,442)\n\n​\n\n​\n\n188,216\n\nGross profit\n\n​\n\n​\n\n328,247\n\n​\n\n​\n\n19,499\n\n​\n\n​\n\n—\n\n​\n\n​\n\n347,746\n\nSelling, general and administrative expenses:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCompensation\n\n​\n\n​\n\n114,217\n\n​\n\n​\n\n6,936\n\n​\n\n​\n\n—\n\n​\n\n​\n\n121,153\n\nFacility fees\n\n​\n\n​\n\n41,744\n\n​\n\n​\n\n7,556\n\n​\n\n​\n\n—\n\n​\n\n​\n\n49,300\n\nAdvertising\n\n​\n\n​\n\n32,113\n\n​\n\n​\n\n3,157\n\n​\n\n​\n\n—\n\n​\n\n​\n\n35,270\n\nOther segment items(3)\n\n​\n\n​\n\n46,308\n\n​\n\n​\n\n3,292\n\n​\n\n​\n\n—\n\n​\n\n​\n\n49,600\n\nTotal selling, general and administrative expenses\n\n​\n\n​\n\n234,382\n\n​\n\n​\n\n20,941\n\n​\n\n​\n\n—\n\n​\n\n​\n\n255,323\n\nDepreciation and amortization\n\n​\n\n​\n\n6,456\n\n​\n\n​\n\n732\n\n​\n\n​\n\n—\n\n​\n\n​\n\n7,188\n\nOperating profit (loss)\n\n​\n\n$\n\n87,409\n\n​\n\n$\n\n(2,174)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n85,235\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended April 30, 2025**\n\n​\n\n  ​ ​ ​\n\n**Wholesale**\n\n  ​ ​ ​\n\n**Retail**\n\n  ​ ​ ​\n\n**Elimination**(1)\n\n  ​ ​ ​\n\n**Total**\n\n​\n\n​\n\n**(In thousands)**\n\nNet sales\n\n​\n\n$\n\n562,649\n\n​\n\n$\n\n36,375\n\n​\n\n$\n\n(15,415)\n\n​\n\n$\n\n583,609\n\nCost of goods sold\n\n​\n\n​\n\n335,565\n\n​\n\n​\n\n16,915\n\n​\n\n​\n\n(15,415)\n\n​\n\n​\n\n337,065\n\nGross profit\n\n​\n\n​\n\n227,084\n\n​\n\n​\n\n19,460\n\n​\n\n​\n\n—\n\n​\n\n​\n\n246,544\n\nSelling, general and administrative expenses:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCompensation\n\n​\n\n​\n\n96,873\n\n​\n\n​\n\n7,269\n\n​\n\n​\n\n—\n\n​\n\n​\n\n104,142\n\nFacility fees\n\n​\n\n​\n\n45,486\n\n​\n\n​\n\n7,386\n\n​\n\n​\n\n—\n\n​\n\n​\n\n52,872\n\nAdvertising\n\n​\n\n​\n\n28,172\n\n​\n\n​\n\n3,433\n\n​\n\n​\n\n—\n\n​\n\n​\n\n31,605\n\nOther segment items(3)\n\n​\n\n​\n\n39,180\n\n​\n\n​\n\n3,696\n\n​\n\n​\n\n—\n\n​\n\n​\n\n42,876\n\nTotal selling, general and administrative expenses\n\n​\n\n​\n\n209,711\n\n​\n\n​\n\n21,784\n\n​\n\n​\n\n—\n\n​\n\n​\n\n231,495\n\nDepreciation and amortization\n\n​\n\n​\n\n5,692\n\n​\n\n​\n\n881\n\n​\n\n​\n\n—\n\n​\n\n​\n\n6,573\n\nOperating profit (loss)\n\n​\n\n$\n\n11,681\n\n​\n\n$\n\n(3,205)\n\n​\n\n$\n\n—\n\n​\n\n$\n\n8,476\n\n(1)Represents intersegment sales to the Company’s retail operations segment.\n\n(2)The wholesale operations segment includes a $119.7 million reduction in cost of goods sold during the three months ended April 30, 2026 resulting from the tariff refund receivable. See Note 12 — Tariff Refund Receivable.\n\n(3)Other segment items include design and product development costs, professional fees, office expenses, freight and packaging, allowance for doubtful account charges and other selling, general and administrative expenses.\n\n​\n\n​\n\n15\n\n[Table of Contents](#TOC)\n\nThe total net sales by licensed and proprietary product sales for each of the Company’s reportable segments are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Three Months Ended**\n\n​\n\n  ​ ​ ​\n\n**April 30, 2026**\n\n  ​ ​ ​\n\n**April 30, 2025**\n\n​\n\n​\n\n**(In thousands)**\n\nLicensed brands\n\n​\n\n$\n\n162,960\n\n​\n\n$\n\n199,060\n\nProprietary brands\n\n​\n\n​\n\n351,844\n\n​\n\n​\n\n363,589\n\nWholesale net sales\n\n​\n\n$\n\n514,804\n\n​\n\n$\n\n562,649\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\nProprietary brands\n\n​\n\n$\n\n40,600\n\n​\n\n$\n\n36,375\n\nRetail net sales\n\n​\n\n$\n\n40,600\n\n​\n\n$\n\n36,375\n\n​\n\nThe Company allocates overhead to its business segments on various bases, which include units shipped, space utilization, inventory levels and relative sales levels, among other factors. The method of allocation has been applied consistently on a period-to-period basis.\n\n​\n\nThe total assets for each of the Company’s reportable segments, as well as assets not allocated to a segment, are as follows:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n  ​ ​ ​\n\n**April 30, 2026**\n\n  ​ ​ ​\n\n**April 30, 2025**\n\n  ​ ​ ​\n\n**January 31, 2026**\n\n​\n\n​\n\n**(In**** ****thousands)**\n\nWholesale\n\n​\n\n$\n\n1,485,217\n\n​\n\n$\n\n1,489,257\n\n​\n\n$\n\n1,549,760\n\nRetail\n\n​\n\n​\n\n93,710\n\n​\n\n​\n\n94,998\n\n​\n\n​\n\n87,769\n\nCorporate\n\n​\n\n​\n\n1,006,058\n\n​\n\n​\n\n831,618\n\n​\n\n​\n\n973,291\n\nTotal assets\n\n​\n\n$\n\n2,584,985\n\n​\n\n$\n\n2,415,873\n\n​\n\n$\n\n2,610,820\n\n​\n\nCapital expenditures during the three months ended April 30, 2026 for the wholesale operations segment and retail operations segment were $7.2 million and $1.3 million, respectively. Capital expenditures during the three months ended April 30, 2025 for the wholesale operations segment and retail operations segment were $2.3 million and $1.0 million, respectively.\n\n​\n\n​\n\n**NOTE 11 – STOCKHOLDERS’ EQUITY**\n\n​\n\nFor the three months ended April 30, 2026, the Company issued no shares of common stock and utilized 1,286 shares of treasury stock in connection with the vesting of equity awards. For the three months ended April 30, 2025, the Company issued no shares of common stock and utilized 213,829 shares of treasury stock in connection with the vesting of equity awards.\n\n​\n\n*Dividends*\n\n​\n\nOn March 12, 2026, the Board of Directors declared a quarterly cash dividend of $0.10 per share on the issued and outstanding common stock of the Company. The dividend was paid on March 30, 2026, to all stockholders of record as of March 23, 2026.\n\n​\n\nOn May 26, 2026, the Board of Directors declared a cash dividend of $0.10 per share. The dividend will be paid on July 8, 2026 to all stockholders of record as of June 22, 2026.\n\n​\n\n**NOTE 12 – TARIFF REFUND RECEIVABLE**\n\n​\n\nIn February 2026, the Supreme Court of the United States ruled against the current administration’s use of the International Emergency Economic Powers Act (“IEEPA”) to impose certain tariffs levied since February 2025. Pursuant to a court order on March 4, 2026 from the U.S. Court of International Trade (“CIT”) directing the refund of such tariffs, including applicable interest, on April 20, 2026, U.S. Customs and Border Protection (“CBP”) launched the Consolidated Administration and Processing of Entries (“CAPE”) system to facilitate refund claims, to which the Company successfully submitted its refund claim.\n\n​\n\n16\n\n[Table of Contents](#TOC)\n\nBased on the Supreme Court ruling, the CIT order and actions taken by CBP regarding the refund process and other available information, including offers from third-party financial institutions to acquire the Company’s tariff refund claim, the Company assessed that the recovery of previously paid IEEPA tariffs is probable and reasonably estimable in accordance with the cost recovery accounting guidance. As of April 30, 2026, the Company recorded a receivable of approximately $139.5 million related to IEEPA tariffs paid by the Company between February 2025 and February 2026, which is included within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheets.\n\n​\n\nThe accounting for the IEEPA tariff refund reflects the original treatment of the underlying tariff costs. During the three months ended April 30, 2026, the Company recognized a $119.7 million reduction in cost of goods sold in the Company’s condensed consolidated statements of income, representing the expense for IEEPA tariffs on inventory sold to customers since the tariffs were enacted in February 2025. Additionally, the Company recognized a $19.8 million reduction in the carrying value of inventories on hand on the Company’s condensed consolidated balance sheet as of April 30, 2026 for tariffs previously capitalized as cost of inventory. Interest associated with refunded IEEPA tariffs will be recognized in the Company’s condensed consolidated statements of income in the period it is received.\n\n​\n\nAlthough the Company has assessed that the recovery of previously paid IEEPA tariffs is probable based on currently available information, the timing of cash receipts remains dependent upon the processing of refund claims by CBP and the U.S. Department of Treasury.\n\n​\n\n**NOTE 13 – LITIGATION WITH PVH CORP.**\n\n​\n\nOn June 13, 2025, the Company filed a complaint against PVH Corp. and two of its subsidiaries (“Defendants”) in the New York County Commercial Division of the Supreme Court of the State of New York for breach of contract, breach of the implied covenant of good faith and fair dealing, and tortious interference with contract arising out of the unreasonable denial of the Company’s request to extend the Calvin Klein and Tommy Hilfiger licenses for the women’s suits category for an additional three-year period and other actions taken by Defendants that undermined the Company’s ability to perform under Calvin Klein and Tommy Hilfiger license agreements and subjected the Company to contractual penalties. On July 30, 2025, Calvin Klein, Inc. and Tommy Hilfiger Licensing LLC filed their own complaint against G-III in the same court alleging breaches of the license agreements between the parties. The Company believes that Calvin Klein, Inc. and Tommy Hilfiger Licensing LLC’s complaint is without merit, and the Company intends to vigorously defend against these actions. Due to the uncertainty inherent in any litigation, the Company is unable to estimate any reasonably possible loss, or range of loss, with respect to this matter.\n\n​\n\n**NOTE 14 – RECENT ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS**\n\n​\n\n*Recently Adopted Accounting Guidance*\n\n​\n\nThere was no accounting guidance adopted during the three months ended April 30, 2026.\n\n​\n\n*Issued Accounting Guidance Being Evaluated for Adoption*\n\n​\n\nIn 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.\n\n​\n\n​\n\n17\n\n[Table of Contents](#TOC)\n\n**NOTE 15 – SUBSEQUENT EVENTS**\n\n​\n\nOn May 14, 2026, the Company entered into certain agreements relating to the acquisition of the Marc Jacobs business from LVMH Moet Hennessy Louis Vuitton Inc. and its affiliates (“LVMH”). The transaction is structured such that (i) MJ Topco, LLC (“IPCo”), a newly formed joint venture between a subsidiary of the Company and an affiliate of WHP Global (“WHP”), will acquire all of the issued and outstanding units of Marc Jacobs Holdings, LLC through a wholly owned indirect subsidiary, Majestic AcqCo, LLC, (ii) following such acquisition, the Company will acquire the Marc Jacobs operating business through its subsidiaries, and (iii) IPCo will retain the Marc Jacobs intellectual property and certain other retained assets. The Company will fund its approximately $500 million investment using cash on hand and borrowings under its revolving credit facility. The Company will operate the business pursuant to a license from IPCo. Subject to closing, the license agreement will provide an exclusive right to use the Marc Jacobs brand in the United States, Canada, Mexico and Western Europe for the distribution, promotion and sale of specified product categories, including women’s and men’s apparel, handbags, footwear, swim, small leather goods, luggage and cold weather accessories, through wholesale channels, branded retail stores and branded e-commerce sites. The initial term of the license agreement is from the effective date through December 2041, and the Company has 10 successive options to renew the license agreement for periods of 5 years.\n\n​\n\n18\n\n[Table of Contents](#TOC)"}