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Derivative Financial Instruments
 9 Months Ended
Oct. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

NOTE 7 – DERIVATIVE FINANCIAL INSTRUMENTS

The Company addresses certain financial exposures that include the use of derivative financial instruments. The Company enters into foreign currency forward contracts to reduce the effects of fluctuating foreign currency exchange rates. As of October 31, 2025, the Company did not have any net forward contracts in its hedging portfolio that qualified as cash flow hedging instruments. The net gain or loss on the derivatives is reported as a component of accumulated other comprehensive income/(loss) and reclassified into earnings in the same period during which the hedged transaction affects earnings using the same revenue or expense category that the hedged item impacted. The Company also enters into foreign currency forward contracts not designated as qualified hedges in accordance with ASC 815, Derivatives and Hedging. As of October 31, 2025, the Company’s net forward contracts hedging portfolio not designated as qualified hedges consisted of 28.0 million Swiss Francs equivalent, 37.4 million U.S. dollars equivalent, 22.2 million Euros equivalent and 5.4 million British Pounds equivalent with various expiry dates ranging through April 2, 2026. Changes in the fair value of these derivatives are recognized in earnings in the period they arise. Net gains or losses related to these forward contracts are included in Cost of sales, Selling, general and administrative expenses in the Consolidated Statements of Operations. The cash flows related to these foreign currency contracts are classified in operating activities.

The following table presents the fair values of the Company's derivative financial instruments included in the Consolidated Balance Sheets as of October 31, 2025, January 31, 2025 and October 31, 2024 (in thousands):

 

 

 

Asset Derivatives

 

 

Liability Derivatives

 

 

 

Balance
Sheet
Location

 

October 31,
 2025
Fair
 Value

 

 

January 31,
 2025
Fair
 Value

 

 

October 31,
 2024
Fair
 Value

 

 

Balance
Sheet
Location

 

October 31,
 2025
Fair
 Value

 

 

January 31,
 2025
Fair
 Value

 

 

October 31,
 2024
Fair
 Value

 

Derivatives designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Contracts

 

Other Current
Assets

 

$

—

 

 

$

—

 

 

$

219

 

 

Accrued
Liabilities

 

$

—

 

 

$

—

 

 

$

—

 

Total Derivative Instruments

 

 

 

$

—

 

 

$

—

 

 

$

219

 

 

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

Asset Derivatives

 

 

Liability Derivatives

 

 

 

Balance
Sheet
Location

 

October 31,
 2025
Fair
 Value

 

 

January 31,
 2025
Fair
 Value

 

 

October 31,
 2024
Fair
 Value

 

 

Balance
Sheet
Location

 

October 31,
 2025
Fair
 Value

 

 

January 31,
 2025
Fair
 Value

 

 

October 31,
 2024
Fair
 Value

 

Derivatives not designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Exchange Contracts

 

Other Current
Assets

 

$

69

 

 

$

13

 

 

$

154

 

 

Accrued
Liabilities

 

$

287

 

 

$

1,111

 

 

$

77

 

Total Derivative Instruments

 

 

 

$

69

 

 

$

13

 

 

$

154

 

 

 

 

$

287

 

 

$

1,111

 

 

$

77

 

As of October 31, 2025, January 31, 2025 and October 31, 2024, the balance of net deferred gains on derivative financial instruments designated as cash flow hedges included in accumulated other comprehensive income were $0, $0 and $0.2 million, respectively. For the three months ended October 31, 2025, and October 31, 2024, the Company reclassified ($0.9) million and ($0.4) million, respectively, from accumulated other comprehensive loss to Net sales in the Consolidated Statements of Operations. For the nine months ended October 31, 2025, and October 31, 2024, the Company reclassified ($1.7) million and ($0.2) million, respectively, from accumulated other comprehensive loss to Net sales in the Consolidated Statements of Operations. No ineffectiveness has been recorded for the three months and nine months ended October 31, 2025.

 

See Note 8 - Fair Value Measurements for fair value and presentation in the Consolidated Balance Sheets for derivatives.