G-III Apparel (GIII) 10-Q 6 Dec 16 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 31, 2016	Dec. 01, 2016
Document And Entity Information Abstract
Entity Registrant Name	G III APPAREL GROUP LTD /DE/
Entity Central Index Key	821,002
Trading Symbol	giii
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		48,639,643
Document Type	10-Q
Document Period End Date	Oct. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 44,996	$ 132,587	$ 54,298
Accounts receivable, net of allowances for doubtful accounts and sales discounts of $83,793, $ 77,606 and $74,261, respectively	537,073	221,500	537,458
Inventories	490,555	485,311	510,374
Prepaid income taxes		23,347
Deferred income taxes, net	17,571	17,564	16,056
Prepaid expenses and other current assets	16,326	22,131	14,799
Total current assets	1,106,521	902,440	1,132,985
INVESTMENTS IN UNCONSOLIDATED AFFILIATES	61,456	25,662	25,494
PROPERTY AND EQUIPMENT, NET	101,579	103,579	101,137
OTHER ASSETS	25,244	24,886	26,380
OTHER INTANGIBLES, NET	9,910	10,799	11,461
TRADEMARKS, NET	68,637	67,267	68,871
GOODWILL	50,094	49,437	50,164
TOTAL ASSETS	1,423,441	1,184,070	1,416,492
CURRENT LIABILITIES
Notes payable	91,334		171,840
Income tax payable	25,184		34,444
Accounts payable	181,653	173,586	175,056
Accrued expenses	103,844	71,218	105,287
Total current liabilities	402,015	244,804	486,627
DEFERRED INCOME TAXES, NET	21,575	23,840	18,770
OTHER NON-CURRENT LIABILITIES	29,949	27,299	26,099
TOTAL LIABILITIES	453,539	295,943	531,496
STOCKHOLDERS' EQUITY
Preferred stock; 1,000 shares authorized; No shares issued and outstanding
Common stock - $.01 par value; 120,000 shares authorized; 46,407, 46,204 and 46,212 shares issued respectively	235	229	229
Additional paid-in capital	359,149	353,739	354,065
Accumulated other comprehensive loss	(20,526)	(23,689)	(19,183)
Retained earnings	632,534	560,491	552,528
Common stock held in treasury, at cost - 376, 667 and 667 shares respectively	(1,490)	(2,643)	(2,643)
TOTAL STOCKHOLDERS' EQUITY	969,902	888,127	884,996
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,423,441	$ 1,184,070	$ 1,416,492

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts and sales discounts on accounts receivable (in dollars)	$ 83,793	$ 74,261	$ 77,606
Preferred stock, shares authorized	1,000	1,000	1,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	120,000	120,000	120,000
Common stock, shares issued	46,407	46,212	46,204
Treasury stock, shares	376	667	667

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Income Statement [Abstract]
Net sales	$ 883,476	$ 909,865	$ 1,783,145	$ 1,816,714
Cost of goods sold	562,024	572,808	1,140,381	1,156,890
Gross profit	321,452	337,057	642,764	659,824
Selling, general and administrative expenses	198,274	191,044	504,547	469,560
Depreciation and amortization	8,033	6,611	22,898	18,213
Operating profit	115,145	139,402	115,319	172,051
Equity loss in unconsolidated affiliates	(1,437)		(820)	(3)
Other Income		896		896
Interest and financing charges, net	(1,701)	(1,955)	(3,999)	(4,107)
Income before income taxes	112,007	138,343	110,500	168,840
Income tax expense	41,443	51,187	38,458	62,471
Net income	$ 70,564	$ 87,156	$ 72,042	$ 106,369
Basic:
Net income per common share (in dollars per share)	$ 1.54	$ 1.92	$ 1.58	$ 2.36
Weighted average number of shares outstanding (in shares)	45,918	45,311	45,713	45,117
Diluted:
Net income per common share (in dollars per share)	$ 1.50	$ 1.87	$ 1.53	$ 2.29
Weighted average number of shares outstanding (in shares)	46,902	46,526	46,947	46,392
Net income	$ 70,564	$ 87,156	$ 72,042	$ 106,369
Other comprehensive income (loss):
Foreign currency translation adjustments	(59)	929	3,163	(9,078)
Other comprehensive income (loss)	(59)	929	3,163	(9,078)
Comprehensive income	$ 70,505	$ 88,085	$ 75,205	$ 97,291

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Cash flows from operating activities
Net income	$ 72,042	$ 106,369
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	22,898	18,213
Loss on disposal of fixed assets	1,295	338
Change in contingent purchase price payable		(899)
Equity loss in unconsolidated affiliate	820	3
Equity based compensation	13,265	11,430
Deferred income taxes	(2,682)
Deferred financing charges	609	607
Changes in operating assets and liabilities:
Accounts receivable, net	(315,426)	(339,418)
Inventories	(4,986)	(84,699)
Income taxes, net	48,526	51,450
Prepaid expenses and other current assets	5,851	8,109
Other assets, net	(279)	(684)
Accounts payable, accrued expenses and other liabilities	40,816	44,421
Net cash used in operating activities	(117,251)	(184,760)
Cash flows from investing activities
Investment in unconsolidated affiliate	(35,432)	(25,490)
Capital expenditures	(18,400)	(34,315)
Net cash used in investing activities	(53,832)	(59,805)
Cash flows from financing activities
Proceeds from notes payable, net	91,334	171,840
Taxes paid for net share settlement	(6,955)
Debt issuance costs	(690)
Proceeds from exercise of equity awards	260	376
Net cash provided by financing activities	83,949	172,216
Foreign currency translation adjustments	(457)	(1,707)
Net decrease in cash and cash equivalents	(87,591)	(74,056)
Cash and cash equivalents at beginning of period	132,587	128,354
Cash and cash equivalents at end of period	44,996	54,298
Cash payments:
Interest, net	3,163	3,440
Income tax payments (refund), net	$ (7,534)	$ 7,203

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 31, 2016
Accounting Policies [Abstract]
Basis of Presentation	Note 1 – Basis of Presentation As used in these financial statements, the term “Company” or “G-III” refers to G-III Apparel Group, Ltd. and its subsidiaries. The Company designs, manufactures 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. The Company consolidates the accounts of all its wholly-owned and majority-owned subsidiaries. KL North America BV (“KLNA”) is a Dutch limited liability company which is a joint venture that is 49% owned by the Company. Kingdom Holdings 1 B.V. (“KH1”) is a Dutch limited liability company that is 19% owned by the Company. These investments are accounted for using the equity method of accounting. All material intercompany balances and transactions have been eliminated. Vilebrequin International SA (“Vilebrequin”), a Swiss corporation, which is wholly-owned by the Company, KH1 and KLNA report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. The results for the nine month period ended October 31, 2016 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, 2016 filed with the Securities and Exchange Commission (the “SEC”). On April 1, 2015, the Board of Directors approved a two-for-one stock split of the Company’s outstanding shares of common stock, to be effected in the form of a stock dividend. The stock dividend was paid to stockholders of record as of the close of market on April 20, 2015 and was effected on May 1, 2015. All share and per share information has been retroactively adjusted to reflect this stock split. The Company’s international subsidiaries use different functional currencies, which are the local selling currency. In accordance with the authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from 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 within stockholders’ equity. Certain reclassifications have been made to the Condensed Consolidated Statements of Cash Flows as a result of the Company’s electing to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method as prescribed by Accounting Standard Update (“ASU”) 2016-09. This change resulted in a $10.5 million decrease in net cash used in operating activities and a corresponding decrease in net cash provided by financing activities in the accompanying Condensed Consolidated Statement of Cash Flows for the period ended October 31, 2015, compared to the amounts previously reported.

Investment in unconsolidated af

Investment in unconsolidated affiliates	9 Months Ended
	Oct. 31, 2016
Equity Investment [Abstract]
Investment in unconsolidated affiliates	Note 2 – Investment in unconsolidated affiliates In February 2016, the Company acquired a 19% minority interest in KH1, the parent company of the group that holds the worldwide rights to the Karl Lagerfeld brand. The Company paid 32.5€ million (approximately $35.4 million at the date of the transaction). This investment is intended to expand the partnership between the Company and the Karl Lagerfeld brand and extend their business development opportunities on a global scale. The investment in KH1, which is being accounted for under the equity method of accounting, is reflected in Investment in Unconsolidated Affiliates on the Condensed Consolidated Balance Sheets at October 31, 2016. In June 2015, the Company entered into a joint venture agreement with Karl Lagerfeld Group BV. The Company acquired a 49% ownership interest in KLNA, an entity that holds brand rights to Karl Lagerfeld trademarks for all consumer products (except eyewear, fragrance, cosmetics, watches, jewelry and hospitality services) and apparel in the United States, Canada and Mexico. The Company is also a licensee of the joint venture and has been granted a five-year license (with two renewals of five-years each) for women’s apparel, women’s handbags, women’s footwear and men’s outerwear. The Company began shipping Karl Lagerfeld sportswear, dresses, women’s outerwear and handbags in the third quarter of fiscal 2016 and Karl Lagerfeld women’s footwear in the first quarter of fiscal 2017. The investment in KLNA, which is being accounted for under the equity method of accounting, is reflected in Investment in Unconsolidated Affiliates on the Condensed Consolidated Balance Sheets at October 31, 2016.

Inventories

Inventories	9 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Note 3 – Inventories Wholesale inventories are stated at the lower of cost (determined by the first-in, first out method) or market which comprises a significant portion of the Company’s inventory. Retail inventories are valued at the lower of cost or market as determined by the retail inventory method. Vilebrequin inventories are stated at the lower of cost (determined by the weighted average method) or market. Inventories consist of: October 31, 2016 October 31, 2015 January 31, 2016 (In thousands) Finished goods $ 489,352 $ 507,602 $ 484,805 Raw materials and work-in-process 1,203 2,772 506 $ 490,555 $ 510,374 $ 485,311

Net Income per Common Share

Net Income per Common Share	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Net Income per Common Share	Note 4 – 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 is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock awards and stock options outstanding, during the period. In addition, all share based payments outstanding that vest based on the achievement of performance and/or market price conditions, and for which the respective performance and/or market price conditions have not been achieved, have been excluded from the diluted per share calculation. Approximately 377,000 shares of common stock have been excluded from the diluted net income per share calculation for the nine months ended October 31, 2016. For the nine months ended October 31, 2016 and 2015, 194,618 and 262,830 shares of common stock, respectively, were issued in connection with the exercise or vesting of equity awards. On February 1, 2016, the Company adopted the Accounting Standard Update 2016-09 (see Note 7 for further details). The new guidance prescribes that excess tax benefits are no longer recognized in additional paid in capital. The assumed proceeds from applying the treasury stock method when computing net income per share is amended to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. This change in accounting results in approximately 250,000 additional diluted common shares being included in the diluted net income per share calculation for the nine months ended October 31, 2016. The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share: Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands, except per share amounts) Net income attributable to G-III $ 70,564 $ 87,156 $ 72,042 $ 106,369 Basic net income per share: Basic common shares 45,918 45,311 45,713 45,117 Basic net income per share $ 1.54 $ 1.92 $ 1.58 $ 2.36 Diluted net income per share: Basic common shares 45,918 45,311 45,713 45,117 Diluted Restricted stock awards and stock options 984 1,215 1,234 1,275 Diluted common shares 46,902 46,526 46,947 46,392 Diluted net income per share $ 1.50 $ 1.87 $ 1.53 $ 2.29

Notes Payable

Notes Payable	9 Months Ended
	Oct. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	Note 5 – Notes Payable The Company’s credit agreement with JPMorgan Chase Bank, N.A., as Administrative Agent for a group of lenders, is a five-year senior secured credit facility through August 2017 providing for borrowings in the aggregate principal amount of up to $450 million. Amounts available under the credit agreement are subject to borrowing base formulas and other advances as specified in the credit agreement. As of October 31, 2016, there was $345.0 million available under the credit agreement. Borrowings bear interest, at the Company’s option, at LIBOR plus a margin of 1.5% to 2.0% or prime plus a margin of 0.5% to 1.0%, with the applicable margin determined based on availability under the credit agreement. The credit agreement requires the Company to maintain a minimum fixed charge coverage ratio, as defined, and, under certain circumstances, permits the Company to make payments for cash dividends, stock redemptions and share repurchases subject to compliance with certain covenants. As of October 31, 2016, the Company was in compliance with these covenants. The credit agreement is secured by all of the assets of G-III Apparel Group, Ltd. and its subsidiaries, G-III Leather Fashions, Inc., Riviera Sun, Inc., CK Outerwear, LLC, Andrew & Suzanne Company Inc., AM Retail Group, Inc., G-III Apparel Canada ULC, G-III License Company, LLC and AM Apparel Holdings, Inc. Amounts outstanding under the Company’s credit agreement were $91.3 million at October 31, 2016 and $171.8 million at October 31, 2015 (see note 8 for further details).

Segments

Segments	9 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
Segments	Note 6 – Segments The Company’s reportable segments are business units that offer products through different channels of distribution. The Company has two reportable segments: wholesale operations and retail operations. The wholesale operations segment includes sales of products under brands licensed to the Company from third parties, as well as sales of products under the Company’s own brands and private label brands. The retail operations segment consists primarily of sales by the Wilsons Leather and G.H. Bass stores, as well as a limited number of Calvin Klein Performance stores. The following information, in thousands, is presented for the three month and nine month periods indicated below: Three Months Ended October 31, 2016 Wholesale Retail Elimination (1) Total Net sales $ 794,382 $ 107,238 $ (18,144 ) $ 883,476 Cost of goods sold 521,359 58,809 (18,144 ) 562,024 Gross profit 273,023 48,429 — 321,452 Selling, general and administrative 140,356 57,918 — 198,274 Depreciation and amortization 5,169 2,864 — 8,033 Operating profit (loss) $ 127,498 $ (12,353 ) $ — $ 115,145 Three Months Ended October 31, 2015 Wholesale Retail Elimination (1) Total Net sales $ 807,034 $ 124,669 $ (21,838 ) $ 909,865 Cost of goods sold 527,144 67,502 (21,838 ) 572,808 Gross profit 279,890 57,167 — 337,057 Selling, general and administrative 133,127 57,917 — 191,044 Depreciation and amortization 4,482 2,129 — 6,611 Operating profit (loss) $ 142,281 $ (2,879 ) $ — $ 139,402 Nine Months Ended October 31, 2016 Wholesale Retail Elimination (1) Total Net sales $ 1,538,096 $ 302,188 $ (57,139 ) $ 1,783,145 Cost of goods sold 1,029,829 167,691 (57,139 ) 1,140,381 Gross profit 508,267 134,497 — 642,764 Selling, general and administrative 333,906 170,641 — 504,547 Depreciation and amortization 15,539 7,359 — 22,898 Operating profit (loss) $ 158,822 $ (43,503 ) $ — $ 115,319 Nine Months Ended October 31, 2015 Wholesale Retail Elimination (1) Total Net sales $ 1,550,979 $ 338,695 $ (72,960 ) $ 1,816,714 Cost of goods sold 1,047,861 181,989 (72,960 ) 1,156,890 Gross profit 503,118 156,706 — 659,824 Selling, general and administrative 304,801 164,759 — 469,560 Depreciation and amortization 12,470 5,743 — 18,213 Operating profit (loss) $ 185,847 $ (13,796 ) $ — $ 172,051 (1) Represents intersegment sales to the Company’s retail operations. The total assets for each of the Company’s reportable segments are as follows: October 31, 2016 October 31, 2015 January 31, 2016 (In thousands) Wholesale $ 1,072,994 $ 1,062,754 $ 763,353 Retail 227,743 241,180 210,118 Corporate (1) 122,704 112,558 210,599 Total Assets $ 1,423,441 $ 1,416,492 $ 1,184,070 (1) includes assets not allocated to any reportable segment.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Oct. 31, 2016
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 7 – Recent Accounting Pronouncements Recently Adopted Accounting Guidance In March 2016, the FASB issued ASU 2016-09, “ Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Accounting Guidance Issued Being Evaluated for Adoption In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In April 2016, the FASB issued ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU 2016-07, “ Investments — Equity Method and Joint Ventures (Topic 323: Simplifying the Transition to the Equity Method of Accounting) In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740) — Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued ASU 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory

Subsequent Events

Subsequent Events	9 Months Ended
	Oct. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 8 – Subsequent Events On December 1, 2016, the Company acquired all of the outstanding capital stock of Donna Karan International (“DKI”) from LVMH Moet Hennessy Louis Vuitton Inc. (“LVMH”) for a total purchase price of approximately $650 million, subject to certain adjustments. The stock purchase agreement provided for the purchase price to be paid by the Company with a combination of (i) cash, (ii) $75 million of newly issued shares of G-III common stock, par value $0.01 per share, equivalent to approximately 2.6 million shares, to the seller and (iii) a junior lien secured promissory note in favor of LVMH in the principal amount of $125 million. The Company plans to pay the cash portion of the purchase price from the proceeds of $350.0 million of borrowings under a senior secured term loan facility (“The Term Loan”) and the balance from borrowings under a $650.0 million senior secured asset-based revolving credit facility (the “New ABL Facility”). The Term Loan will mature in December 2022. The Term Loan is subject to amortization payments of 0.625% of the original aggregate principal amount of the Term Loan per quarter, with the balance due at maturity. Interest on the outstanding principal amount of the Term Loan accrues at a rate equal to LIBOR plus an applicable margin of 5.25% or an alternate base rate (defined as the greatest of (i) the “prime rate” as published by the Wall Street Journal from time to time, (ii) the federal funds rate plus 0.5% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus 4.25%, per annum, payable in cash. The Term Loan may be prepaid, at the option of the Company, in whole or in part, at any time at par plus accrued interest, and, in the case of prepayments from the proceeds of certain refinancings prior to December 1, 2017, subject to a 1% prepayment fee applicable. The Term Loan is required to be prepaid with the proceeds of certain asset sales if such proceeds are not applied as required by the Term Loan Credit Agreement within certain specified deadlines. The Term Loan is also required to be prepaid in an amount equal to 75% of the Excess Cash Flow (as defined in the Term Loan Credit Agreement) of the Company with respect to each fiscal year ending on or after January 31, 2018. The percentage of Excess Cash Flow that must be so applied is reduced to 50% if the Company’s senior secured leverage ratio is less than 3.00 to 1.00, to 25% if the Company’s senior secured leverage ratio is less than 2.75 to 1.00 and to 0% if the Company’s senior secured leverage ratio is less than 2.25 to 1.00. Amounts available under the ABL Facilities are subject to borrowing base formulas and over advances as specified in the ABL Credit Agreement. Borrowings bear interest, at the Company’s option, at LIBOR plus a margin of 1.25% to 1.75% or an alternate base rate (defined as the greatest of (i) the “prime rate” of JPMorgan Chase Bank, N.A. from time to time, (ii) the federal funds rate plus 0.5% and (iii) the LIBOR rate for a borrowing with an interest period of one month) plus a margin of 0.25% to 0.75%, with the applicable margin determined based on the Company’s availability under the ABL Credit Agreement. Upon closing of the acquisition of Donna Karan, the Company’s previous credit agreement (see note 5) was refinanced and replaced by the New ABL Facility.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Oct. 31, 2016
Accounting Policies [Abstract]
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, manufactures 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. The Company consolidates the accounts of all its wholly-owned and majority-owned subsidiaries. KL North America BV (“KLNA”) is a Dutch limited liability company which is a joint venture that is 49% owned by the Company. Kingdom Holdings 1 B.V. (“KH1”) is a Dutch limited liability company that is 19% owned by the Company. These investments are accounted for using the equity method of accounting. All material intercompany balances and transactions have been eliminated. Vilebrequin International SA (“Vilebrequin”), a Swiss corporation, which is wholly-owned by the Company, KH1 and KLNA report results on a calendar year basis rather than on the January 31 fiscal year basis used by the Company. The results for the nine month period ended October 31, 2016 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, 2016 filed with the Securities and Exchange Commission (the “SEC”). On April 1, 2015, the Board of Directors approved a two-for-one stock split of the Company’s outstanding shares of common stock, to be effected in the form of a stock dividend. The stock dividend was paid to stockholders of record as of the close of market on April 20, 2015 and was effected on May 1, 2015. All share and per share information has been retroactively adjusted to reflect this stock split. The Company’s international subsidiaries use different functional currencies, which are the local selling currency. In accordance with the authoritative guidance, assets and liabilities of the Company’s foreign operations are translated from 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 within stockholders’ equity. Certain reclassifications have been made to the Condensed Consolidated Statements of Cash Flows as a result of the Company’s electing to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using a retrospective transition method as prescribed by Accounting Standard Update (“ASU”) 2016-09. This change resulted in a $10.5 million decrease in net cash used in operating activities and a corresponding decrease in net cash provided by financing activities in the accompanying Condensed Consolidated Statement of Cash Flows for the period ended October 31, 2015, compared to the amounts previously reported.
Recent Accounting Pronouncements	Recently Adopted Accounting Guidance In March 2016, the FASB issued ASU 2016-09, “ Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting Accounting Guidance Issued Being Evaluated for Adoption In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In April 2016, the FASB issued ASU 2016-10, “ Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Identifying Performance Obligations and Licensing Narrow-Scope Improvements and Practical Expedients In March 2016, the FASB issued ASU 2016-07, “ Investments — Equity Method and Joint Ventures (Topic 323: Simplifying the Transition to the Equity Method of Accounting) In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, “ Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In November 2015, the FASB issued ASU 2015-17, “ Income Taxes (Topic 740) — Balance Sheet Classification of Deferred Taxes In July 2015, the FASB issued ASU 2015-11, “ Inventory (Topic 330): Simplifying the Measurement of Inventory

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Oct. 31, 2016
Inventory Disclosure [Abstract]
Schedule of inventories	October 31, 2016 October 31, 2015 January 31, 2016 (In thousands) Finished goods $ 489,352 $ 507,602 $ 484,805 Raw materials and work-in-process 1,203 2,772 506 $ 490,555 $ 510,374 $ 485,311

Net Income per Common Share (Ta

Net Income per Common Share (Tables)	9 Months Ended
	Oct. 31, 2016
Earnings Per Share [Abstract]
Schedule of reconciliation between basic and diluted net income per share	Three Months Ended Nine Months Ended 2016 2015 2016 2015 (In thousands, except per share amounts) Net income attributable to G-III $ 70,564 $ 87,156 $ 72,042 $ 106,369 Basic net income per share: Basic common shares 45,918 45,311 45,713 45,117 Basic net income per share $ 1.54 $ 1.92 $ 1.58 $ 2.36 Diluted net income per share: Basic common shares 45,918 45,311 45,713 45,117 Diluted Restricted stock awards and stock options 984 1,215 1,234 1,275 Diluted common shares 46,902 46,526 46,947 46,392 Diluted net income per share $ 1.50 $ 1.87 $ 1.53 $ 2.29

Segments (Tables)

Segments (Tables)	9 Months Ended
	Oct. 31, 2016
Segment Reporting [Abstract]
Schedule of information regarding reportable segments	Three Months Ended October 31, 2016 Wholesale Retail Elimination (1) Total Net sales $ 794,382 $ 107,238 $ (18,144 ) $ 883,476 Cost of goods sold 521,359 58,809 (18,144 ) 562,024 Gross profit 273,023 48,429 — 321,452 Selling, general and administrative 140,356 57,918 — 198,274 Depreciation and amortization 5,169 2,864 — 8,033 Operating profit (loss) $ 127,498 $ (12,353 ) $ — $ 115,145 Three Months Ended October 31, 2015 Wholesale Retail Elimination (1) Total Net sales $ 807,034 $ 124,669 $ (21,838 ) $ 909,865 Cost of goods sold 527,144 67,502 (21,838 ) 572,808 Gross profit 279,890 57,167 — 337,057 Selling, general and administrative 133,127 57,917 — 191,044 Depreciation and amortization 4,482 2,129 — 6,611 Operating profit (loss) $ 142,281 $ (2,879 ) $ — $ 139,402 Nine Months Ended October 31, 2016 Wholesale Retail Elimination (1) Total Net sales $ 1,538,096 $ 302,188 $ (57,139 ) $ 1,783,145 Cost of goods sold 1,029,829 167,691 (57,139 ) 1,140,381 Gross profit 508,267 134,497 — 642,764 Selling, general and administrative 333,906 170,641 — 504,547 Depreciation and amortization 15,539 7,359 — 22,898 Operating profit (loss) $ 158,822 $ (43,503 ) $ — $ 115,319 Nine Months Ended October 31, 2015 Wholesale Retail Elimination (1) Total Net sales $ 1,550,979 $ 338,695 $ (72,960 ) $ 1,816,714 Cost of goods sold 1,047,861 181,989 (72,960 ) 1,156,890 Gross profit 503,118 156,706 — 659,824 Selling, general and administrative 304,801 164,759 — 469,560 Depreciation and amortization 12,470 5,743 — 18,213 Operating profit (loss) $ 185,847 $ (13,796 ) $ — $ 172,051 (1) Represents intersegment sales to the Company’s retail operations.
Schedule of total assets for each reportable segments	October 31, 2016 October 31, 2015 January 31, 2016 (In thousands) Wholesale $ 1,072,994 $ 1,062,754 $ 763,353 Retail 227,743 241,180 210,118 Corporate (1) 122,704 112,558 210,599 Total Assets $ 1,423,441 $ 1,416,492 $ 1,184,070 (1) includes assets not allocated to any reportable segment.

Basis of Presentation (Detail T

Basis of Presentation (Detail Textuals) $ in Millions	9 Months Ended
	Oct. 31, 2016USD ($)
Schedule of Equity Method Investments [Line Items]
Stock split of common stock	2
Decrease in net cash used in operating activities	$ 10.5
KL North America BV ("KLNA") | Equity method of accounting
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest	49.00%
Kingdom Holding 1 BV ("KH1") | Equity method of accounting
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest	19.00%

Investment in unconsolidated 19

Investment in unconsolidated affiliates (Detail Textuals) € in Millions, $ in Millions	1 Months Ended
	Jun. 30, 2015	Feb. 28, 2016USD ($)	Feb. 28, 2016EUR (€)
Karl Lagerfeld Group BV ("KLBV") | Karl Lagerfeld North America ("KLNA")
Investment Holdings [Line Items]
Percentage of ownership interest	49.00%
Term of license	5 years
Number of 5 year renewals of license	2
Kingdom Holding 1 BV ("KH1") | Karl Lagerfeld brand
Investment Holdings [Line Items]
Percentage of ownership interest		19.00%	19.00%
Cost of acquisition		$ 35.4	€ 32.5

Inventories - Summary of invent

Inventories - Summary of inventories (Details) - USD ($) $ in Thousands	Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 489,352	$ 484,805	$ 507,602
Raw materials and work-in-process	1,203	506	2,772
Inventories	$ 490,555	$ 485,311	$ 510,374

Net Income (Loss) per Common Sh

Net Income (Loss) per Common Share - Reconciliation between basic and diluted net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share [Abstract]
Net income attributable to G-III	$ 70,564	$ 87,156	$ 72,042	$ 106,369
Basic net income per share:
Basic common shares	45,918	45,311	45,713	45,117
Basic net income per share (in dollars per share)	$ 1.54	$ 1.92	$ 1.58	$ 2.36
Diluted net income per share:
Basic common shares	45,918	45,311	45,713	45,117
Diluted Restricted stock awards and stock options	984	1,215	1,234	1,275
Diluted common shares	46,902	46,526	46,947	46,392
Diluted net income per share (in dollars per share)	$ 1.50	$ 1.87	$ 1.53	$ 2.29

Net Income (Loss) per Common 22

Net Income (Loss) per Common Share (Detail Textuals) - shares shares in Thousands	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Earnings Per Share [Abstract]
Common stock excluded from the diluted net income per share calculation	377
Common stock issued in connection with exercise or vesting of equity awards	194,618	262,830
Additional diluted common shares being included in diluted net income per share calculation	250,000

Notes Payable (Detail Textuals)

Notes Payable (Detail Textuals) - Senior secured credit facility - USD ($) $ in Millions	9 Months Ended
	Oct. 31, 2016	Oct. 31, 2015
Debt Instrument [Line Items]
Term of senior secured credit facility	5 years
Senior secured credit facility	$ 450
Amount available under credit agreement	345
Line of credit outstanding amount	$ 91.3	$ 171.8
LIBOR plus | Minimum
Debt Instrument [Line Items]
Spread interest rate	1.50%
LIBOR plus | Maximum
Debt Instrument [Line Items]
Spread interest rate	2.00%
Prime plus | Minimum
Debt Instrument [Line Items]
Spread interest rate	0.50%
Prime plus | Maximum
Debt Instrument [Line Items]
Spread interest rate	1.00%

Segments - Information regardin

Segments - Information regarding reportable segments (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Oct. 31, 2016	Oct. 31, 2015	Oct. 31, 2016	Oct. 31, 2015
Segment Reporting Information [Line Items]
Net sales		$ 883,476	$ 909,865	$ 1,783,145	$ 1,816,714
Cost of goods sold		562,024	572,808	1,140,381	1,156,890
Gross profit		321,452	337,057	642,764	659,824
Selling, general and administrative		198,274	191,044	504,547	469,560
Depreciation and amortization		8,033	6,611	22,898	18,213
Operating profit (loss)		115,145	139,402	115,319	172,051
Operating Segments | Wholesale
Segment Reporting Information [Line Items]
Net sales		794,382	807,034	1,538,096	1,550,979
Cost of goods sold		521,359	527,144	1,029,829	1,047,861
Gross profit		273,023	279,890	508,267	503,118
Selling, general and administrative		140,356	133,127	333,906	304,801
Depreciation and amortization		5,169	4,482	15,539	12,470
Operating profit (loss)		127,498	142,281	158,822	185,847
Operating Segments | Retail
Segment Reporting Information [Line Items]
Net sales		107,238	124,669	302,188	338,695
Cost of goods sold		58,809	67,502	167,691	181,989
Gross profit		48,429	57,167	134,497	156,706
Selling, general and administrative		57,918	57,917	170,641	164,759
Depreciation and amortization		2,864	2,129	7,359	5,743
Operating profit (loss)		(12,353)	(2,879)	(43,503)	(13,796)
Elimination
Segment Reporting Information [Line Items]
Net sales	[1]	(18,144)	(21,838)	(57,139)	(72,960)
Cost of goods sold	[1]	$ (18,144)	$ (21,838)	$ (57,139)	$ (72,960)
[1]	Represents intersegment sales to the Company's retail operations.

Segments - Information of total

Segments - Information of total assets for company's reportable segments (Details 1) - USD ($) $ in Thousands		Oct. 31, 2016	Jan. 31, 2016	Oct. 31, 2015
Segment Reporting Information [Line Items]
Total Assets		$ 1,423,441	$ 1,184,070	$ 1,416,492
Corporate
Segment Reporting Information [Line Items]
Total Assets	[1]	122,704	210,599	112,558
Operating Segments | Wholesale
Segment Reporting Information [Line Items]
Total Assets		1,072,994	763,353	1,062,754
Operating Segments | Retail
Segment Reporting Information [Line Items]
Total Assets		$ 227,743	$ 210,118	$ 241,180
[1]	includes assets not allocated to any reportable segment.

Segments (Detail Textuals)

Segments (Detail Textuals)	9 Months Ended
	Oct. 31, 2016Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Recent Accounting Pronounceme27

Recent Accounting Pronouncements (Detail Textuals) $ / shares in Units, $ in Millions	9 Months Ended
	Oct. 31, 2016USD ($)$ / shares
Accounting Changes And Error Corrections [Abstract]
Recognition of excess tax benefits on adoption of ASU 2016-09 | $	$ 3.1
Recognition of excess tax benefits per diluted share on adoption of ASU 2016-09 | $ / shares	$ 0.07

Subsequent Events (Detail Textu

Subsequent Events (Detail Textuals) - Subsequent Events $ / shares in Units, shares in Millions, $ in Millions	Dec. 01, 2016USD ($)$ / sharesshares
Senior secured asset-based revolving credit facility (the "New ABL Facility") | LIBOR plus
Business Acquisition [Line Items]
Description of variable rate basis	LIBOR plus a margin of 1.25% to 1.75%
Senior secured asset-based revolving credit facility (the "New ABL Facility") | LIBOR plus | Minimum
Business Acquisition [Line Items]
Spread interest rate	0.25%
Senior secured asset-based revolving credit facility (the "New ABL Facility") | LIBOR plus | Maximum
Business Acquisition [Line Items]
Spread interest rate	0.75%
Senior secured asset-based revolving credit facility (the "New ABL Facility") | Base rate plus
Business Acquisition [Line Items]
Spread interest rate	0.50%
Donna Karan International ("DKI") | Senior secured asset-based revolving credit facility (the "New ABL Facility")
Business Acquisition [Line Items]
Maximum borrowing capacity	$ 650
Donna Karan International ("DKI") | Senior Secured Term Loan Facility
Business Acquisition [Line Items]
Proceeds from line of credit	$ 350
Percentage of amortization payments	0.625%
Description of variable rate basis	LIBOR plus an applicable margin of 5.25%
Percentage of prepayment fee	1.00%
Description of repayment of term loan	The Term Loan is also required to be prepaid in an amount equal to 75% of the Excess Cash Flow (as defined in the Term Loan Credit Agreement) of the Company with respect to each fiscal year ending on or after January 31, 2018. The percentage of Excess Cash Flow that must be so applied is reduced to 50% if the Company's senior secured leverage ratio is less than 3.00 to 1.00, to 25% if the Company's senior secured leverage ratio is less than 2.75 to 1.00 and to 0% if the Company's senior secured leverage ratio is less than 2.25 to 1.00.
Donna Karan International ("DKI") | Senior Secured Term Loan Facility | LIBOR plus
Business Acquisition [Line Items]
Spread interest rate	4.25%
Donna Karan International ("DKI") | Senior Secured Term Loan Facility | Base rate plus
Business Acquisition [Line Items]
Spread interest rate	0.50%
Stock Purchase Agreement | LVMH Moet Hennessy Louis Vuitton Inc. ("LVMH") | Donna Karan International ("DKI")
Business Acquisition [Line Items]
Total purchase price	$ 650
Value for newly issued shares of common stock	$ 75
Number of newly issued shares of common stock | shares	2.6
Newly issued shares, share price | $ / shares	$ 0.01
Promissory note principal amount	$ 125