SEC Filing | GIII Apparel Group

View:

Download DOC

Download PDF

Download XLS

Download XBRL

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 0-18183

G-III APPAREL GROUP, LTD.

(Exact name of registrant as specified in its charter)


Delaware		41-1590959
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

512 Seventh Avenue, New York, New York		10018
(Address of principal executive offices)		(Zip Code)

(212) 403-0500

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	GIII	The Nasdaq Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.) Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of September 5, 2023, there were 45,721,002 shares of issuer’s common stock, par value $0.1 per share, outstanding.

Table of Contents

TABLE OF CONTENTS

		Page No.
Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets –July 31, 2023 (Unaudited), July 31, 2022 (Unaudited) and January 31, 2023	3
	Condensed Consolidated Statements of Operations and Comprehensive Income - For the Three and Six Months Ended July 31, 2023 and 2022 (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity –July 31, 2023 and July 31, 2022 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows - For the Six Months Ended July 31, 2023 and 2022 (Unaudited)	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	33

Part II	OTHER INFORMATION
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 5.	Other Information	34
Item 6.	Exhibits	35

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS


	July 31,		July 31,		January 31,
	2023		2022		2023
	(Unaudited)		(Unaudited)
	(In thousands, except per share amounts)
ASSETS
Current assets
Cash and cash equivalents	$	197,735	$	150,977	$	191,652
Accounts receivable, net of allowance for doubtful accounts of $18,491, $18,067 and $18,297, respectively		519,361		488,523		674,963
Inventories		804,858		1,040,814		709,345
Prepaid income taxes		8,588		1,142		5,886
Prepaid expenses and other current assets		72,143		83,954		70,654
Total current assets		1,602,685		1,765,410		1,652,500
Investments in unconsolidated affiliates		27,089		26,117		24,467
Property and equipment, net		53,791		54,421		53,742
Operating lease assets		229,723		209,000		239,665
Other assets, net		56,051		55,462		52,644
Other intangibles, net		33,613		35,427		34,842
Deferred income tax assets, net		26,432		9,405		26,389
Trademarks		632,669		622,182		628,156
Goodwill		—		304,930		—
Total assets	$	2,662,053	$	3,082,354	$	2,712,405
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of notes payable	$	62,732	$	80,109	$	135,518
Accounts payable		294,287		438,167		169,508
Accrued expenses		146,933		130,806		115,586
Customer refund liabilities		56,223		56,384		89,760
Current operating lease liabilities		54,563		49,734		52,917
Income tax payable		8,844		12,642		14,875
Other current liabilities		430		1,544		905
Total current liabilities		624,012		769,386		579,069
Notes payable, net of discount and unamortized issuance costs		403,304		495,668		483,840
Deferred income tax liabilities, net		45,858		36,447		44,783
Noncurrent operating lease liabilities		192,981		179,247		204,974
Other noncurrent liabilities		14,929		17,396		15,141
Total liabilities		1,281,084		1,498,144		1,327,807

Redeemable noncontrolling interests		(1,146)		209		(850)

Stockholders' Equity
Preferred stock; 1,000 shares authorized; no shares issued		—		—		—
Common stock - $0.01 par value; 120,000 shares authorized; 49,396, 49,396 and 49,396 shares issued, respectively		264		264		264
Additional paid-in capital		448,762		461,621		468,712
Accumulated other comprehensive loss		(4,603)		(16,226)		(11,653)
Retained earnings		1,003,618		1,183,958		983,944
Common stock held in treasury, at cost - 3,675, 1,909 and 2,680 shares, respectively		(65,926)		(45,616)		(55,819)
Total stockholders' equity		1,382,115		1,584,001		1,385,448
Total liabilities, redeemable noncontrolling interests and stockholders' equity	$	2,662,053	$	3,082,354	$	2,712,405

The accompanying notes are an integral part of these statements.

Table of Contents

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME


	Three Months Ended July 31,				Six Months Ended July 31,
	2023		2022		2023		2022

	(Unaudited)
	(In thousands, except per share amounts)
Net sales	$	659,761	$	605,244	$	1,266,350	$	1,294,001
Cost of goods sold		383,108		376,318		739,897		819,036
Gross profit		276,653		228,926		526,453		474,965
Selling, general and administrative expenses		239,207		191,012		467,168		376,420
Depreciation and amortization		5,959		6,656		12,535		12,751
Operating profit		31,487		31,258		46,750		85,794
Other income		192		30,325		1,165		27,618
Interest and financing charges, net		(9,492)		(12,550)		(21,642)		(24,753)
Income before income taxes		22,187		49,033		26,273		88,659
Income tax expense		5,951		12,968		6,896		21,968
Net income		16,236		36,065		19,377		66,691
Less: Loss attributable to noncontrolling interests		(202)		(254)		(297)		(262)
Net income attributable to G-III Apparel Group, Ltd.	$	16,438	$	36,319	$	19,674	$	66,953


NET INCOME PER COMMON SHARE ATTRIBUTABLE TO G-III APPAREL GROUP, LTD.:
Basic:
Net income per common share	$	0.36	$	0.76	$	0.43	$	1.39
Weighted average number of shares outstanding		45,714		47,999		45,996		48,007

Diluted:
Net income per common share	$	0.35	$	0.74	$	0.42	$	1.36
Weighted average number of shares outstanding		46,570		49,019		46,992		49,061

Net income	$	16,236	$	36,065	$	19,377	$	66,691
Other comprehensive income (loss):
Foreign currency translation adjustments		2,359		2,493		7,074		(1,637)
Other comprehensive income (loss)		2,359		2,493		7,074		(1,637)
Comprehensive income	$	18,595	$	38,558	$	26,451	$	65,054
Comprehensive loss attributable to noncontrolling interests:
Net loss		(202)		(254)		(297)		(262)
Foreign currency translation adjustments		(26)		(62)		(24)		(60)
Comprehensive loss attributable to noncontrolling interests		(228)		(316)		(321)		(322)
Comprehensive income attributable to G-III Apparel Group, Ltd.	$	18,367	$	38,242	$	26,130	$	64,732

The accompanying notes are an integral part of these statements.

Table of Contents

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


					Accumulated				Common
			Additional		Other				Stock
	Common		Paid-In		Comprehensive		Retained		Held In
	Stock		Capital		Loss		Earnings		Treasury		Total

	(Unaudited)
	(In thousands)
Balance as of April 30, 2023	$	264	$	472,474	$	(6,936)	$	987,180	$	(72,535)	$	1,380,447
Equity awards vested, net		—		(15,940)		—		—		15,940		—
Share-based compensation expense		—		3,001		—		—		—		3,001
Taxes paid for net share settlements		—		(10,773)		—		—		—		(10,773)
Other comprehensive income, net		—		—		2,333		—		—		2,333
Repurchases of common stock		—		—		—		—		(9,331)		(9,331)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		16,438		—		16,438
Balance as of July 31, 2023	$	264	$	448,762	$	(4,603)	$	1,003,618	$	(65,926)	$	1,382,115

Balance as of April 30, 2022	$	264	$	460,999	$	(18,657)	$	1,147,639	$	(31,953)	$	1,558,292
Equity awards vested, net		—		(2,959)		—		—		2,959		—
Share-based compensation expense		—		4,696		—		—		—		4,696
Taxes paid for net share settlements		—		(1,115)		—		—		—		(1,115)
Other comprehensive income, net		—		—		2,431		—		—		2,431
Repurchases of common stock		—		—		—		—		(16,622)		(16,622)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		36,319		—		36,319
Balance as of July 31, 2022	$	264	$	461,621	$	(16,226)	$	1,183,958	$	(45,616)	$	1,584,001

Balance as of January 31, 2023	$	264	$	468,712	$	(11,653)	$	983,944	$	(55,819)	$	1,385,448
Equity awards vested, net		—		(15,993)		—		—		15,993		—
Share-based compensation expense		—		6,838		—		—		—		6,838
Taxes paid for net share settlements		—		(10,795)		—		—		—		(10,795)
Other comprehensive income, net		—		—		7,050		—		—		7,050
Repurchases of common stock		—		—		—		—		(26,100)		(26,100)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		19,674		—		19,674
Balance as of July 31, 2023	$	264	$	448,762	$	(4,603)	$	1,003,618	$	(65,926)	$	1,382,115

Balance as of January 31, 2022	$	264	$	456,329	$	(14,529)	$	1,117,005	$	(39,157)	$	1,519,912
Equity awards vested, net		—		(10,163)		—		—		10,163		—
Share-based compensation expense		—		25,245		—		—		—		25,245
Taxes paid for net share settlements		—		(9,790)		—		—		—		(9,790)
Other comprehensive loss, net		—		—		(1,697)		—		—		(1,697)
Repurchases of common stock		—		—		—		—		(16,622)		(16,622)
Net income attributable to G-III Apparel Group, Ltd.		—		—		—		66,953		—		66,953
Balance as of July 31, 2022	$	264	$	461,621	$	(16,226)	$	1,183,958	$	(45,616)	$	1,584,001

The accompanying notes are an integral part of these statements.

Table of Contents

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Six Months Ended July 31,
	2023		2022

	(Unaudited, in thousands)
Cash flows from operating activities
Net income attributable to G-III Apparel Group, Ltd.	$	19,674	$	66,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		12,535		12,751
Loss on disposal of fixed assets		319		33
Non-cash operating lease costs		29,815		24,233
Equity gain (loss) in unconsolidated affiliates		978		(980)
Change in fair value of equity securities		(1,009)		1,718
Share-based compensation		6,838		25,245
Deferred financing charges and debt discount amortization		4,549		5,057
Deferred income taxes		1,031		(226)
Non-cash gain on fair value of prior minority ownership of Karl Lagerfeld		—		(30,925)
Changes in operating assets and liabilities:
Accounts receivable, net		155,602		145,134
Inventories		(95,513)		(496,351)
Income taxes, net		(8,733)		15,009
Prepaid expenses and other current assets		(321)		(5,767)
Other assets, net		(3,883)		(307)
Customer refund liabilities		(33,537)		(30,404)
Operating lease liabilities		(30,242)		(23,547)
Accounts payable, accrued expenses and other liabilities		154,376		182,480
Net cash provided by (used in) operating activities		212,479		(109,894)

Cash flows from investing activities
Operating lease assets initial direct costs		(52)		(87)
Investment in e-commerce retailer		—		(25,000)
Investment in equity interest of private company		(3,600)		—
Investment in equity securities		—		(22,378)
Capital expenditures		(11,117)		(8,526)
Acquisition of KLH, net of cash acquired		—		(168,592)
Net cash used in investing activities		(14,769)		(224,583)

Cash flows from financing activities
Repayment of borrowings - revolving facility		(85,400)		(8,647)
Proceeds from borrowings - revolving facility		5,313		57,946
Repayment of borrowings - LVMH Note		(75,000)		—
Repayment of borrowings - foreign facilities		(75,116)		(600)
Proceeds from borrowings - foreign facilities		72,773		581
Purchase of treasury shares		(26,100)		(16,622)
Taxes paid for net share settlements		(10,795)		(9,790)
Net cash (used in) provided by financing activities		(194,325)		22,868

Foreign currency translation adjustments		2,698		(3,398)
Net increase (decrease) in cash and cash equivalents		6,083		(315,007)
Cash and cash equivalents at beginning of period		191,652		465,984
Cash and cash equivalents at end of period	$	197,735	$	150,977

Supplemental disclosures of cash flow information
Cash payments:
Interest, net	$	16,052	$	18,576
Income tax payments, net	$	6,278	$	6,733

The accompanying notes are an integral part of these statements.

Table of Contents

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION

As used in these financial statements, the term “Company” or “G-III” refers to G-III Apparel Group, Ltd. and its subsidiaries. The Company designs, sources and markets an extensive range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits and women’s performance wear, as well as women’s handbags, footwear, small leather goods, cold weather accessories and luggage. The Company also operates retail stores and licenses its proprietary brands under several product categories.

The Company consolidates the accounts of its wholly-owned and majority-owned subsidiaries. Fabco Holding B.V. (“Fabco”) is a Dutch joint venture limited liability company that is 75% owned by the Company and is treated as a consolidated majority-owned subsidiary. Sonia Rykiel is a wholly-owned operating subsidiary. Karl Lagerfeld Holding B.V. (“KLH”) is a Dutch limited liability company that was 19% owned by the Company through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, the Company acquired the remaining 81% interest in KLH that it did not previously own and, as a result, KLH began being treated as a consolidated wholly-owned subsidiary. KL North America B.V. (“KLNA”) is a Dutch joint venture limited liability company that was 49% owned by the Company and 51% indirectly owned by KLH through May 30, 2022 and was accounted for during that time using the equity method of accounting. Effective May 31, 2022, KLNA became an indirect wholly-owned subsidiary of the Company as a result of the Company’s acquisition of the remaining 81% interest in KLH it did not previously own. All material intercompany balances and transactions have been eliminated. The results of KLH are included in the Company’s consolidated financial statements beginning May 31, 2022.

KLH, Vilebrequin International SA (“Vilebrequin”), a Swiss corporation that is wholly-owned by the Company, Fabco and Sonia Rykiel 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, Fabco and Sonia Rykiel 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 six-month period ended July 31, 2023, the results of KLH, Vilebrequin, Fabco and Sonia Rykiel are included for the six-month period ended June 30, 2023. For the year ended January 31, 2023, the results of KLH, which includes KLNA, are included for the period from June 1, 2022 through December 31, 2022. The results of the Company’s previous 49% ownership interest in KLNA and 19% ownership interest in KLH are included for the period from January 1, 2022 through May 30, 2022. The Company’s retail operations segment reports on a 52/53 week fiscal year. For fiscal 2024 and 2023, the three and six-month periods for the retail operations segment were each 13-week and 26-week periods, respectively, and ended on July 29, 2023 and July 30, 2022, respectively.

The results for the three and six months ended July 31, 2023 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, 2023 filed with the Securities and Exchange Commission (the “SEC”).

Assets and liabilities of the Company’s foreign operations, where the functional currency is not the U.S. dollar (reporting currency), are translated from the foreign currency into U.S. dollars at period-end rates, while income and expenses are translated at the weighted-average exchange rates for the period. The related translation adjustments are reflected as a foreign currency translation adjustment in accumulated other comprehensive loss within stockholders’ equity.

NOTE 2 – ALLOWANCE FOR DOUBTFUL ACCOUNTS

The Company’s financial instruments consist of trade receivables arising from revenue transactions in the ordinary course of business. The Company considers its trade receivables to consist of two portfolio segments: wholesale and retail trade

Table of Contents

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 30 to 60 days. Retail trade receivables primarily relate to amounts due from third-party credit card processors for the settlement of debit and credit card transactions and are typically collected within 3 to 5 days.

The Company’s accounts receivable and allowance for doubtful accounts as of July 31, 2023, July 31, 2022 and January 31, 2023 were:


	July 31, 2023
	Wholesale		Retail		Total

	(In thousands)
Accounts receivable, gross	$	536,711	$	1,141	$	537,852
Allowance for doubtful accounts		(18,428)		(63)		(18,491)
Accounts receivable, net	$	518,283	$	1,078	$	519,361

	July 31, 2022
	Wholesale		Retail		Total

	(In thousands)
Accounts receivable, gross	$	505,635	$	955	$	506,590
Allowance for doubtful accounts		(18,001)		(66)		(18,067)
Accounts receivable, net	$	487,634	$	889	$	488,523

	January 31, 2023
	Wholesale		Retail		Total

	(In thousands)
Accounts receivable, gross	$	692,033	$	1,227	$	693,260
Allowance for doubtful accounts		(18,237)		(60)		(18,297)
Accounts receivable, net	$	673,796	$	1,167	$	674,963

The allowance for doubtful accounts for wholesale trade receivables is estimated based on several factors. In circumstances where the Company is aware of a specific customer’s inability to meet its financial obligations (such as in the case of bankruptcy filings (including potential bankruptcy filings), extensive delay in payment or substantial downgrading by credit rating agencies), a specific reserve for bad debt is recorded against amounts due from that customer to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other wholesale customers, an allowance for doubtful accounts is determined through analysis of the aging of accounts receivable at the end of the reporting period for financial statements, assessments of collectability based on historical trends and an evaluation of the impact of economic conditions. The Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

The allowance for doubtful accounts for retail trade receivables is estimated at the credit card chargeback rate applied to the previous 90 days of credit card sales. In addition, the Company considers both current and forecasted future economic conditions in determining the adequacy of its allowance for doubtful accounts.

Table of Contents

The Company had the following activity in its allowance for credit losses:


	Wholesale		Retail		Total

	(In thousands)
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)
Provision for credit losses, net		(192)		(3)		(195)
Accounts written off as uncollectible		1		—		1
Balance as of July 31, 2023	$	(18,428)	$	(63)	$	(18,491)

Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(737)		18		(719)
Accounts written off as uncollectible		43		—		43
Balance as of July 31, 2022	$	(18,001)	$	(66)	$	(18,067)

Balance as of January 31, 2022	$	(17,307)	$	(84)	$	(17,391)
Provision for credit losses, net		(1,002)		24		(978)
Accounts written off as uncollectible		72		—		72
Balance as of January 31, 2023	$	(18,237)	$	(60)	$	(18,297)

NOTE 3 – INVENTORIES

Wholesale 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.

The inventory return asset, which consists of the amount of goods that are anticipated to be returned by customers, was $8.5 million, $9.3 million and $19.2 million as of July 31, 2023, July 31, 2022 and January 31, 2023, respectively. The inventory return asset is recorded within prepaid expenses and other current assets on the condensed consolidated balance sheets.

Inventory held on consignment by the Company’s customers totaled $7.9 million, $5.7 million and $6.6 million at July 31, 2023, July 31, 2022 and January 31, 2023, respectively. The Company reflects this inventory on its condensed consolidated balance sheets.

NOTE 4 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Generally Accepted Accounting Principles establish a three-level valuation hierarchy for disclosure of fair value measurements. The determination of the applicable level within the hierarchy for a particular asset or liability depends on the inputs used in its valuation as of the measurement date, notably the extent to which the inputs are market-based (observable) or internally-derived (unobservable). A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:

●

Level 1 — inputs to the valuation methodology based on quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 — inputs to the valuation methodology based on quoted prices for similar assets or liabilities in active markets for substantially the full term of the financial instrument; quoted prices for identical or similar instruments in markets that are not active for substantially the full term of the financial instrument; and model-derived valuations whose inputs or significant value drivers are observable.

●

Level 3 — inputs to the valuation methodology based on unobservable prices or valuation techniques that are significant to the fair value measurement.

Table of Contents

The following table summarizes the carrying values and the estimated fair values of the Company’s debt instruments:


		Carrying Value						Fair Value
		July 31,		July 31,		January 31,		July 31,		July 31,		January 31,
Financial Instrument	Level	2023		2022		2023		2023		2022		2023

		(In thousands)
Secured Notes	1	$	400,000	$	400,000	$	400,000	$	393,000	$	394,000	$	380,000
Revolving credit facility	2		—		51,614		80,087		—		51,614		80,087
Note issued to LVMH	3		49,105		117,665		121,202		48,391		114,796		119,426
Unsecured loans	2		9,913		7,969		10,866