MARC JACOBS ACQUISITION |
6 Months Ended |
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Jul. 31, 2026 | |
| MARC JACOBS ACQUISITION | |
| MARC JACOBS ACQUISITION | NOTE 15 – MARC JACOBS ACQUISITION On 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”), which was completed as of September 1, 2026 (the “Closing Date”). The transaction was structured such that (i) MJ Topco, LLC (“IPCo”), a newly formed joint venture in which a subsidiary of the Company owns 50% of the membership interests and an affiliate of WHP Global (“WHP”) owns the remaining 50%, acquired 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 acquired 100% of the Marc Jacobs operating business through its subsidiaries, and (iii) IPCo retained the Marc Jacobs intellectual property and certain other retained assets. The Company funded 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. The license agreement, entered into on the Closing Date by IPCo and certain subsidiaries of the Company, granted 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 Closing Date through December 2041, and we have 10 successive options to renew the license agreement for periods of 5 years. Due to the limited time since the Closing Date, the initial accounting for the Marc Jacobs acquisition is incomplete as of the date of this filing. As such, it is impracticable for the Company to make certain business combination disclosures required by ASC 805 – Business Combinations at this time. The Company is unable to provide i) the allocation of the preliminary purchase price to the fair value of assets acquired and liabilities assumed and ii) supplemental pro forma revenue and earnings of the combined entity. The Company will provide this information in its quarterly report on Form 10-Q for the quarter ending October 31, 2026.
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