ADDED
In addition, in July 2025 the Company signed a license agreement with Coach Services, Inc.
pursuant to which the Company has the exclusive right to manufacture, market and distribute watches globally under the Kate Spade New York brand name, with the first collection planned to launch in the spring of 2027.
Sales of jewelry accounted for 10.2% of its consolidated net sales in fiscal year 2026.
Lacoste Watches and Jewelry The Lacoste watch and jewelry collections fully embody the Lacoste lifestyle, blending French elegance, sporting spirit and innovation to support style and freedom of movement.
Reflecting the brand's key attributes, the collections feature contemporary, stylish timepieces and jewelry inspired by sport and free movement - all expressed through a distinctive French flair.
5 MARKETING The Company s marketing strategy is to communicate a consistent, brand-specific message to consumers.
As consumer engagement continues to evolve, the Company focuses on expanding its digital marketing and online reach, including social media platforms, influencer partnerships, retail media networks and other digital advertising channels, while enhancing the customer experience through innovative technologies and consumer-facing initiatives.
Advertising is an integral component of the Company s marketing efforts, and the Company maintains an in-house marketing department responsible for implementing and managing global marketing and advertising strategies for each brand to ensure consistent presentation.
Advertising campaigns are developed individually by brand, utilizing outside agencies as appropriate, and are directed primarily to the end consumer rather than trade customers.
Marketing expenses totaled 19.5%, 22.4%, and 19.4% of net sales in fiscal 2026, 2025 and 2024, respectively.
REMOVED
Any previously issued or filed reports, press releases, earnings releases and investor presentations or other communications describing the Company's Consolidated Financial Statements and other related financial information covering the fiscal years ended January 31, 2024 and 2023, and the interim periods within fiscal years 2025 and 2024 (the "Affected Periods") should also no longer be relied upon.
RESTATEMENT This Annual Report on Form 10-K for the year ended January 31, 2025 includes audited Consolidated Financial Statements at January 31, 2025 and January 31, 2024 and for the years ended January 31, 2025, January 31, 2024 and January 31, 2023, as well as relevant unaudited interim financial information for the quarterly periods ended October 31, 2024, July 31, 2024, April 30, 2024, October 31, 2023, July 31, 2023 and April 30, 2023.
We have restated certain information within this Annual Report on Form 10-K, including our Consolidated Financial Statements at January 31, 2024 and for the years ended January 31, 2024 and January 31, 2023 and the relevant unaudited interim financial information for the quarterly periods ended October 31, 2024, July 31, 2024, April 30, 2024, October 31, 2023, July 31, 2023 and April 30, 2023.
BACKGROUND OF THE RESTATEMENT As described in our Current Report on Form 8-K filed with the Securities and Exchange Commission ("SEC") on April 11, 2025, in late January 2025, the Company became aware of allegations of misconduct within the Dubai branch (the Dubai Branch ) of the Company s Swiss subsidiary, MGI Luxury Group S rl, related to sales to certain customers in the Middle East, India Asia Pacific region (the Affected Region ).
Promptly thereafter, the Company retained outside counsel to conduct an investigation into these allegations.
Based on that investigation, the Company has determined that the former managing director of the Dubai Branch, who oversaw the Affected Region, as well as certain employees under his direction, took actions that resulted in an overstatement of sales, premature recognition of sales, and underreporting of credit notes (e.g., sales discounts) owed to customers in the Affected Region.
These actions included the use of a third-party warehouse unknown to the Company s management to facilitate the premature recognition of sales, and the falsification of documents to circumvent internal controls.
The conduct occurred over a period of approximately five years (beginning with the Company s fiscal year ended January 31, 2021).
The investigation has not identified any impact to reported sales to customers in other regions, nor has the investigation identified any knowledge of, or participation in, the misconduct by Company employees (whether members of management or otherwise) outside of the Affected Region.
The Company has terminated the now former managing director of the Dubai Branch.