<Page>

================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                             ----------------------
                                  FORM 10-Q/A-1
                             ----------------------

            /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   For the quarterly period ended April 1, 2001

                                       OR

          /_/ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                         Commission File Number 1-11805

                         ------------------------------

                         DONNA KARAN INTERNATIONAL INC.
             (Exact name of registrant as specified in its charter)

              Delaware                                  13-3882426
 (State or other jurisdiction of            (I.R.S. Employer Identification No.)
 incorporation or organization)

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

                                 (212) 789-1500
              (Registrant's telephone number, including area code)

                         ------------------------------

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 periods that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. YES /X/  NO /_/

At May 1, 2001, the Registrant had 22,266,483 shares of Common Stock
outstanding.*

*Does not include 18 shares of Class A Common Stock, par value $.01 per share,
and two shares of Class B Common Stock, par value $.01 per share, outstanding as
of such date.

================================================================================


<Page>

                              DONNA KARAN INTERNATIONAL INC.


The following items of the Company's Quarterly Report on Form 10-Q for the
quarter ended April 1, 2001 are hereby amended and, as so amended, are
restated below in their entirety: Item 1. Financial Statements; and Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations.


Item 1. Financial Statements

                              STATEMENTS OF INCOME
                                   (UNAUDITED)

<Table>
<Caption>

                                                THREE MONTHS ENDED
                                          -------------------------------
                                           APRIL 1,          APRIL 2,
                                             2001              2000
                                          -------------    ----------------
                                          (DOLLARS IN THOUSANDS, EXCEPT
                                                 PER SHARE DATA)
<S>                                       <C>              <C>
 NET REVENUES........................     $   173,046      $   172,770
 Cost of sales.......................         117,285          116,791
                                          -----------      -----------

 GROSS PROFIT........................          55,761           55,979
 Selling, general, and administrative
 expenses............................          50,899           49,766
                                          -----------      -----------

 OPERATING INCOME ...................           4,862            6,213
 Interest expense, net...............             691              571
                                          -----------      -----------

 INCOME BEFORE INCOME TAXES..........           4,171            5,642
 Provision for income taxes..........           1,627            2,314
                                          -----------      -----------

 NET INCOME .........................     $     2,544      $     3,328
                                          ===========      ===========

 Net income per common share:
      Basic..........................     $      0.12      $      0.15
                                          ===========      ===========
      Diluted........................     $      0.11      $      0.15
                                          ===========      ===========

 Weighted average common shares
   outstanding:
      Basic..........................      21,614,529       21,600,400
                                          ===========      ===========
      Diluted........................      22,298,765       21,748,500
                                          ===========      ===========
</Table>


                        See Notes to Financial Statements

                                        1
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                                 BALANCE SHEETS

<Table>
<Caption>

                                                APRIL 1,       DECEMBER 31,
                                                  2001             2000
                                              -------------    -------------
                                              (UNAUDITED)
                                                     (IN THOUSANDS)
<S>                                           <C>              <C>
ASSETS

CURRENT ASSETS
   Cash and cash equivalents...........       $       6,379    $      15,535
   Accounts receivable, net of
     allowances of $31,962 and
     $36,178, respectively.............             110,680           85,007
   Inventories.........................              90,851           88,691
   Deferred income taxes...............              28,268           28,297
   Prepaid expenses and other current
     assets............................              29,418           27,920
                                              -------------    -------------
     TOTAL CURRENT ASSETS..............             265,596          245,450
Property and equipment, net............              37,385           38,987
Deferred income taxes..................              19,543           19,650
Deposits and other noncurrent assets...              20,294           20,127
                                              -------------    -------------
                                              $     342,818    $     324,214
                                              =============    =============
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable....................       $      61,149    $      76,956
   Accrued expenses and other current
     liabilities.......................              45,666           57,501
   Borrowing under revolving line of
     credit............................              41,819             --
   Subordinated notes payable .........               8,209             --
                                              -------------    -------------
     TOTAL CURRENT LIABILITIES.........             156,843          134,457
                                              -------------    -------------

Subordinated notes payable ............                --              8,209
Deferred income........................              27,434           28,688

STOCKHOLDERS' EQUITY
  Common stock, $0.01 par value,
     35,000,000 shares authorized,
     22,255,176 shares at April 1, 2001
     and 22,127,805 shares at December
     31, 2000 issued and outstanding...                 223              221
  Common stock Class A, $0.01 par
     value,18 shares authorized, issued
     and outstanding...................                --               --
  Common stock Class B, $0.01 par
     value, 2 shares authorized, issued
     and outstanding...................                --               --
  Preferred stock, $0.01 par value,
     1,000,000 shares authorized, no
     shares issued and outstanding.....                --               --
  Additional paid-in capital...........             193,466          192,348
  Retained deficit.....................             (31,980)         (34,524)
  Accumulated other comprehensive
     income (loss).....................               1,224           (1,415)
                                              -------------    -------------
                                                    162,933          156,630
  Less: Treasury stock, at cost (16,270
     shares)...........................                (384)            (384)
      Unearned compensation............              (4,008)          (3,386)
                                              -------------    -------------
     TOTAL STOCKHOLDERS' EQUITY........             158,541          152,860
                                              -------------    -------------
                                              $     342,818    $     324,214
                                              =============    =============
</Table>


                        See Notes to Financial Statements

                                        2
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<Table>
<Caption>

                                                       THREE MONTHS ENDED
                                                 -------------------------------
                                                  APRIL 1,           APRIL 2,
                                                    2001               2000
                                                 ------------       ------------
                                                         (IN THOUSANDS)
<S>                                             <C>                 <C>
OPERATING ACTIVITIES
Net income...............................       $       2,544       $      3,328
Adjustments to reconcile net income
  to net cash used for operating
  activities:
    Depreciation and amortization........               3,899              3,805
    Amortization of deferred income......              (2,085)            (4,038)
    Provision for bad debts..............                  76                (11)
    Deferred income taxes................                 136                726
    Provision for restricted stock
      compensation.......................                 392                 80
Changes in operating assets and
  liabilities:
    Increase in accounts receivable......             (25,141)           (14,633)
    (Increase) decrease in inventories...              (2,160)            17,968
    (Increase) decrease in prepaid
      expenses and other current assets..              (2,106)               623
    Increase in deposits and other
      noncurrent assets..................              (1,943)            (1,862)
    Decrease in accounts payable,
      accrued expenses, and
      other current liabilities..........             (22,918)           (16,277)
    Decrease in deferred income..........              (1,254)            (2,767)
                                                -------------       ------------
      NET CASH USED FOR OPERATING
        ACTIVITIES.......................             (50,560)           (13,058)
                                                -------------       ------------

INVESTING ACTIVITIES
    Purchase of property and equipment...                (521)              (444)
                                                -------------       ------------
      NET CASH USED FOR INVESTING
        ACTIVITIES.......................                (521)              (444)
                                                -------------       ------------

FINANCING ACTIVITIES
    Net proceeds of revolving credit
      facility...........................              41,819              4,298
    Proceeds from stock options
      exercised..........................                 106                -
                                                -------------       ------------
      NET CASH PROVIDED BY FINANCING
        ACTIVITIES.......................              41,925             4,298
                                                -------------       ------------

    NET DECREASE IN CASH AND CASH
      EQUIVALENTS........................              (9,156)            (9,204)
    CASH AND CASH EQUIVALENTS AT
      BEGINNING OF PERIOD................              15,535             15,038
                                                -------------       ------------

    CASH AND CASH EQUIVALENTS AT END OF
      PERIOD.............................       $       6,379       $      5,834
                                                =============       ============
</Table>


                        See Notes to Financial Statements

                                        3
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION

   The accompanying unaudited consolidated financial statements include the
results of operations of Donna Karan International Inc. and its subsidiaries
(collectively, the "Company"). All significant intercompany balances and
transactions have been eliminated in consolidation.


   On December 18, 2000, the Company announced that it had received a
proposal from a corporation owned by LVMH Moet Henessey Louis Vuitton Inc., a
Delaware corporation ("LVMH") and a subsidiary of LVMH Moet Henessey Louis
Vuitton, S.A., a French corporation, to enter into merger negotiations (the
"LVMH Merger Offer") to acquire all of the outstanding shares of common stock
of the Company for a price of $8.50 per share in cash. On April 2, 2001, the
Company and LVMH announced that they had entered into an Agreement and Plan
of Merger, dated as of March 31, 2001 (the "Merger Agreement"), which sets
forth the terms and conditions of the proposed acquisition of the Company by
LVMH. Pursuant to the Merger Agreement, an indirect subsidiary of LVMH will
be merged with and into the Company (the "Merger") and the Company will
survive the Merger as an indirect subsidiary of LVMH. The Merger Agreement
provides that the stockholders of the Company will receive $10.75 in cash for
each share of common stock of the Company. The Merger is subject to the
approval of the stockholders of the Company and the satisfaction of other
customary closing conditions, including the receipt of required regulatory
approvals. Concurrently with the execution of the Merger Agreement,
stockholders who collectively beneficially own approximately 46.8% of the
Company's outstanding common stock entered into voting agreements with LVMH.
Under the terms of these voting agreements, these stockholders have agreed to
vote all shares of common stock that they beneficially own in favor of the
adoption of the Merger Agreement and the approval of the Merger. In addition,
these stockholders have also agreed, among other things, to vote against any
other transaction the consummation of which could reasonably be expected to
prevent or materially delay the Merger. During the three month period ended
April 1, 2001, the Company incurred $1.7 million in expenses related to the
LVMH Merger Offer, which have been classified as selling, general and
administrative expenses. This amount includes $828,000 in legal and
accounting fees, a $500,00 accrual related to the putative class action
lawsuits described below under "Commitments and Contingencies", $150,000 in
special committee fees, a special bonus of $150,000 payable to an executive
officer, and $72,000 in other merger related expenses.



   The unaudited consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01
of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by accounting principles generally accepted in the
United States for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. On a
quarterly basis, the Company's operations may vary as a result of, among
other things, production and shipping schedules, the introduction of new
products, the timing of opening and closing Company-owned retail stores, and
variations in the timing of certain holidays from year to year. The results
of operations for any interim period are not necessarily indicative of the
results of operations to be expected for a full year. For further
information, refer to the consolidated financial statements and accompanying
footnotes included in the Company's Annual Report on Form 10-K, as amended,
for the year ended December 31, 2000.


   Certain amounts in the financial statements of prior years have been
reclassified to conform to the current year presentation.


RECENT DEVELOPMENTS

The Company's results of operations in the second quarter of fiscal 2001,
having been affected by business and economic conditions, are below forecast
and are expected to continue below forecast for the balance of the fiscal
year. In August 2001, the Company entered into an agreement with Gabrielle
Studio, Inc. (an LVMH affiliate) pursuant to which Gabrielle Studio, Inc.
agreed to defer until June 30, 2002 the payment of royalties owed by the
Company for the second, third and fourth quarters of 2001. The Company
believes that the deferral of such royalty payments will enable it to meet
its credit facility covenants, amended as follows, for the remainder of its
fiscal year. In August 2001, the Company also amended its credit facility.
The August 2001 credit facility amendment provides (i) that an event of
default will occur on January 7, 2002 if the merger with LVMH has not
occurred, (ii) for changes in the application of credit facility covenant
calculations so as to exclude from such calculations, the royalty payments
deferred by the above referenced agreement with Gabrielle Studio, Inc.,
together with certain unpaid severance and merger expenses, and (iii) that
the Company must maintain a minimum of $20 million in availability under the
credit facility from December 15, 2001 through the expiration of the credit
facility. In addition to the August 2001 credit facility amendment, in June
2001 the Company also entered into an amendment of its credit facility which
enabled the Company to borrow amounts in excess of its calculated borrowing
base during the months of June, July and August 2001. The failure of the
Merger with LVMH to close by January 7, 2002 will cause an event of default
under the credit agreement. The Company believes that the Merger will occur
prior to January 7, 2002, and if not, that it will be required to amend its
existing credit facility (which expires May, 2003), or obtain an alternate
source of long-term financing. However, there can be no assurances that an
amended credit facility or any new financing will be available and, if
available, that the terms will be as favorable as the existing terms in the
current credit facility.


Adoption of New Accounting Standards

   In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement No. 133, "Accounting for Derivative Instruments and Hedging
Activities," as amended, which is required to be adopted in fiscal years
beginning after June 15, 2000. The Company has adopted the provisions of this
Statement effective January 1, 2001. This Statement requires that all
derivatives be recorded in the balance sheet as either an asset or liability
measured at fair value and that changes in fair value be recognized currently in
earnings unless specific hedge accounting criteria are met. If the derivative is
a hedge, depending on the nature of the hedge, changes in the fair value of
derivatives will either be offset against the change in fair value of the hedged
assets, liabilities, or firm commitments through earnings or recognized in other
comprehensive income until the hedged item is recognized in earnings. The
ineffective portion of a derivative's change in fair value will be immediately
recognized in earnings. The Company's cumulative effect of adoption of this
Statement was not material to the Company's results of operations or financial
condition. The transition adjustment from adopting this statement resulted in
reclassifying a cumulative unrecognized loss of $0.9 million from accrued
expenses to other comprehensive income.

                                        4
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

   The Company uses derivative financial instruments for the purpose of managing
its exposure to adverse fluctuations in foreign currency exchange rates. The
Company conducts business in many foreign currencies. As a result, it is subject
to foreign currency exchange rate risk due to the effects that foreign exchange
rate movements of these currencies have on the Company's costs and cash flows.
The Company addresses its risks through a program of risk management that
includes the use of derivative financial instruments, the principal objective of
which is to minimize the effect of foreign exchange rate movements on the
Company's operating activities.

   The Company enters into forward exchange contracts to hedge foreign currency
denominated sales and inventory purchases, and the resulting accounts receivable
and payable. Such forward exchange contracts are for periods consistent with the
identified exposures. These contracts are effective hedges of these exposures,
and are designated as dual-purpose hedges-cash flow hedges until the anticipated
transaction occurs, and fair value hedges until the related receivable or
payable settles. As cash flow hedges, changes in the effective portion of the
fair value of these forward contracts are included in other comprehensive income
and recognized in revenues and cost of sales, as applicable, when the underlying
hedged transaction occurs. Once the sale or inventory purchase occurs, gains and
losses on the fair value hedge of the resulting asset or liability are
recognized in other income and expense and are offset by gains and losses on the
mark-to-market of the underlying receivable or payable. Foreign currency
transactions that do not qualify as hedges are marked-to-market on a current
basis with gains and losses recognized through income and reflected in operating
expenses. In addition, any previously deferred gains and losses on hedges that
are terminated prior to the transaction date are recognized in current income
when the hedge is terminated. The contracts have varying maturities with none
exceeding 24 months. Included in other comprehensive income is a net unrealized
gain of $2.6 million related to forward contracts outstanding as of April 1,
2001.

   As a matter of policy, the Company enters into forward exchange contracts
with parties that are major international banks and financial institutions that
have at least an "A" (or equivalent) credit rating. The Company's exposure to
credit loss in the event of nonperformance by any of the counterparties is
limited to only the recognized, but not realized, gains attributable to the
contracts. Management believes risk of loss is remote and in any event would be
immaterial.

Net Income Per Common Share

   In accordance with the requirements of Statement of Financial Accounting
Standards ("SFAS") No. 128, "Earnings per Share," net income per common share
amounts ("basic EPS") were computed by dividing net income by the weighted
average number of common shares outstanding and contingently issuable shares
(which satisfy certain conditions) and excluded any potential dilution. Net
income per common share amounts assuming dilution ("diluted EPS") were computed
by reflecting potential dilution from the issuance of restricted stock and the
exercise of stock options. SFAS No. 128 requires the presentation of both basic
EPS and diluted EPS on the face of the statements of income.

   A reconciliation between the numerators and denominators of the basic and
diluted EPS computations is as follows:

<Table>
<Caption>

                                             THREE MONTHS ENDED
                                       -----------------------------
                                         APRIL 1,         APRIL 2,
                                           2001             2000
                                       ------------      -----------
                               (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                     <C>                <C>
NUMERATOR:
Net income attributable to common
  stock............................     $     2,544        $     3,328
                                        ===========        ===========
DENOMINATOR:
Weighted average common shares
  outstanding--Basic...............      21,614,529         21,600,400
Effect of dilutive securities......         684,236            148,100
                                        -----------        -----------
Weighted average common shares
  outstanding--Diluted.............      22,298,765         21,748,500
                                        ===========        ===========
Basic EPS..........................     $      0.12        $      0.15
                                        ===========        ===========
Diluted EPS........................     $      0.11        $      0.15
                                        ===========        ===========
</Table>


                                        5
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

INVENTORIES

   Inventory is stated at the lower of cost or market, with cost being
determined on the first-in, first-out method.

<Table>
<Caption>

                                              APRIL 1,      DECEMBER
                                                2001        31, 2000
                                             -----------    -----------
                                                  (IN THOUSANDS)
<S>                                          <C>            <C>
Raw materials...........................     $      3,872   $     3,522
Work in process.........................            3,822         3,920
Finished goods..........................           83,157        81,249
                                             ------------   -----------
                                             $     90,851   $    88,691
                                             ===========    ===========
</Table>

PROPERTY AND EQUIPMENT

   Property and equipment are carried at cost less accumulated depreciation.
Depreciation is computed primarily on the straight-line basis over the estimated
useful lives of the assets ranging from 5 to 7 years. Leasehold improvements are
amortized on a straight-line basis over the shorter of the expected useful lives
or the lease term, which in certain instances include the anticipated renewal
period.

   Property and equipment consist of the following:

<Table>
<Caption>

                                              APRIL 1,      DECEMBER 31,
                                                2001            2000
                                             ------------  ------------
                                                  (IN THOUSANDS)
<S>                                          <C>          <C>
Machinery, equipment and fixtures.......     $     29,930  $     29,688
Leasehold improvements..................           63,638        63,359
                                             ------------  ------------
                                                   93,568        93,047
Less accumulated depreciation...........          (56,183)      (54,060)
                                             ------------  ------------
                                             $     37,385  $     38,987
                                             ============  ============
</Table>

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

   Accrued expenses and other current liabilities are comprised of the
following:

<Table>
<Caption>

                                              APRIL 1,       DECEMBER 31,
                                                2001           2000
                                             -----------     ----------
                                                  (IN THOUSANDS)
<S>                                          <C>             <C>
Accrued operating expenses..............     $    10,537     $   13,169
Unearned revenues.......................           6,535          7,367
Accrued royalties.......................          11,766         12,712
Accrued compensation....................           6,657         12,920
Accrued income taxes....................           6,360          6,868
Accrued restructuring and other charges.             757            892
Accrued taxes other than income taxes...           2,376          2,671
Other...................................             678            902
                                             -----------     ----------
                                             $    45,666     $   57,501
                                             ===========     ==========
</Table>


                                        6
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

COMMITMENTS AND CONTINGENCIES


   In December 2000, several putative class actions were filed in state court
in Delaware and New York (collectively the "LVMH Actions") in connection with
the offer of LVMH to acquire the outstanding shares of the Company for a
price of $8.50 per share (the "LVMH Offer"). All of the complaints name the
Company, its Chairman, its Vice Chairman and its Chief Executive Officer as
defendants. Two of the complaints also name the Company's outside Board
members as defendants and three of the complaints also name LVMH as a
defendant. None of the lawsuits specifies any amount of damages sought and,
therefore, it is not practicable to estimate a range of possible loss in
connection with this litigation.



   The LVMH Actions allege, INTER ALIA, that the $8.50 price initially
offered by LVMH to purchase the Company's common stock is inadequate, that
the individual defendants breached their fiduciary duties in connection with
the LVMH Offer and that the Chairman and Vice Chairman of the Company
furthered their own interests, at the expense of the Company's interests, in
allegedly negotiating with LVMH concerning the proposed sale of the Company
to LVMH.


   Following the commencement of the LVMH Actions, counsel for the Company and
the other defendants entered into (i) a stipulation with counsel for plaintiffs
in the actions filed in New York staying such actions and providing that the
outcome of those actions will be governed by the outcome of the actions filed in
Delaware and (ii) a stipulation with counsel for plaintiffs in the actions filed
in Delaware providing that such actions will be consolidated and that defendants
need not respond to the individual complaints pending the filing of a
consolidated amended complaint. By order of the Delaware Court, these actions
were consolidated under the caption IN RE DONNA KARAN INTERNATIONAL INC.
SHAREHOLDERS LITIGATION.


   The Company is also involved from time to time in routine legal matters and
litigation incidental to its business. While the outcome of these matters, as
well as the LVMH Actions, could have a material adverse effect on the Company's
results of operations and cash flows in the period in which such outcome is
determined, in the Company's opinion, the results of these matters are not
expected to have a material effect on the Company's financial position or
results of operation. As of April 1, 2001, the Company accrued $500,000
related to the LVMH Actions, representing that portion of any eventual
outcome not anticipated to be covered by insurance.


RESTRUCTURING AND OTHER CHARGES

   For the three months ended April 1, 2001, the Company utilized approximately
$0.1 million of reserves previously established in connection with its fiscal
1999 restructuring plan. The Company anticipates utilizing the remaining balance
of its reserves during fiscal 2001.

   The balance of the fiscal 1999 restructuring and other charges are as
follows:

<Table>
<Caption>

                                 BALANCE AT          UTILIZED       BALANCE AT
                                 DECEMBER 31,   -----------------    APRIL 1,
(IN THOUSANDS)                     2000         CASH      NONCASH      2001
--------------                   ------------   ----      -------   -----------
<S>                              <C>           <C>        <C>       <C>
Exit costs (including
inventory markdowns) ........    $     68      $    -     $     -   $     68
Employee termination and
severance costs..............         188          64           -        124
Other........................         636          71           -        565
                                 --------      ------     -------   --------
                                 $    892      $  135     $     -   $    757
                                 ========      ======     =======   ========
</Table>

PROVISION FOR INCOME TAXES

   The provision for income taxes represents Federal, foreign, state and local
income taxes. The effective income tax rate was 39.0% and 41.0% for the three
months ended April 1, 2001 and April 2, 2000, respectively. This rate reflects
the effect of state and local taxes, tax rates in certain foreign jurisdictions
and certain nondeductible expenses.

                                        7
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

STATEMENTS OF CASH FLOWS

  Supplemental disclosures of cash flow information:

<Table>
<Caption>

                                                 THREE MONTHS ENDED
                                                -------------------
                                                APRIL 1,  APRIL 2,
                                                  2001      2000
                                                --------  --------
                                                  (IN THOUSANDS)
<S>                                             <C>       <C>
   CASH PAID FOR:
          Interest .........................    $    494  $    352
                                                ========  ========
          Taxes.............................    $  1,458  $  2,798
                                                ========  ========
</Table>

MANAGEMENT ESTIMATES

   The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets, liabilities, revenues and expenses
reported in those financial statements. Actual results could differ from those
based upon such estimates and assumptions.

NOTE 2 -- COMPREHENSIVE INCOME

   Comprehensive income and its components are as follows:


<Table>
<Caption>

                                                THREE MONTHS ENDED
                                                -------------------
                                                APRIL 1,   APRIL 2,
                                                  2001       2000
                                                ---------  ---------
                                                  (IN THOUSANDS)
<S>                                             <C>        <C>
   Net income                                   $   2,544  $   3,328
                                                ---------  ---------
   Foreign currency translation.............           (4)      (128)
   Unrealized gain on forward exchange
   contracts, net ..........................        2,643       --
                                                ---------  ---------
   Other comprehensive income (loss)........        2,639       (128)
                                                ---------  ---------
   Comprehensive income.....................    $   5,183  $   3,200
                                                =========  =========
</Table>


   On January 1, 2001, the Company adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities." Accordingly, a net unrealized gain on
foreign currency forward contracts as of April 1, 2001 of $2,643 is included in
other comprehensive income. The unrealized gain on forward exchange contracts
included in other comprehensive income for the three months ended April 1, 2001
is net of reclassification adjustments for realized gains on forward exchange
contracts.

      Accumulated other comprehensive (loss) is as follows:

<Table>
<Caption>

                                                                              TOTAL
                                                                           ACCUMULATED
                                                             UNREALIZED       OTHER
                                                FOREIGN       GAIN ON      COMPREHENSIVE
                                               CURRENCY       FORWARD         INCOME
                                              TRANSLATION    CONTRACTS        (LOSS)
                                              ------------  -------------  -------------
                                                            (IN THOUSANDS)
<S>                                            <C>             <C>          <C>
            Beginning balance .............    $(1,415)        $       -    $(1,415)
            Current-period change .........         (4)            2,643      2,639
                                               -------         ---------    -------
            Ending balance                     $(1,419)        $   2,643    $ 1,224
                                               =======         =========    =======
</Table>


                                        8
<Page>

                         DONNA KARAN INTERNATIONAL INC.

                          NOTES TO FINANCIAL STATEMENTS

NOTE 3 -- SEGMENT INFORMATION

   Information related to the Company's reportable business segments is as
follows:

<Table>
<Caption>

                               WHOLESALE    LICENSING   RETAIL        TOTAL
                               -----------  ---------  ----------  ------------
                                               (IN THOUSANDS)
<S>                            <C>           <C>        <C>         <C>
THREE MONTHS ENDED
APRIL 1, 2001
-----------------
Net revenues from
  external customers.........  $  133,221    $ 14,013   $ 25,812    $ 173,046
Intersegment revenues........      19,101        --         --         19,101
Segment operating
  profit (loss)..............       3,194(a)    7,844     (6,176)       4,862(a)
Segment assets ..............     272,844       9,834     60,140      342,818

<Caption>

THREE MONTHS ENDED
APRIL 2, 2000
-----------------
<S>                            <C>           <C>        <C>         <C>
Net revenues from
  external customers.........  $  135,324    $ 10,414   $ 27,032    $ 172,770
Intersegment revenues........      16,889        --         --         16,889
Segment operating
  profit (loss)..............       5,808       4,509     (4,104)       6,213
Segment assets...............     223,582       5,512     59,821      288,915
</Table>


(a) Includes $1.7 million in transaction costs related to the proposed LVMH
merger.

Information related to the Company's geographic segments is as follows:

<Table>
<Caption>

                               THREE MONTHS ENDED
                              -------------------------
                                APRIL 1,     APRIL 2,
                                 2001          2000
                              -----------   -----------
                                     (IN THOUSANDS)
<S>                           <C>           <C>
Net revenues:
  United States ............. $  100,513    $  105,286
  Japan......................      5,741         5,249
  Other......................     66,792        62,235
                              ----------    ----------
                              $  173,046    $  172,770
                              ==========    ==========
</Table>


                                        9
<Page>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

     Donna Karan International Inc. (together with its subsidiaries, the
"Company") is one of the world's leading international fashion design houses.
The Company designs, contracts for the manufacture of, markets, retails and
distributes collections of men's and women's clothing, sportswear, accessories
and shoes under the DONNA KARAN NEW YORK, DKNY, DKNY JEANS and DKNY ACTIVE brand
names. The Company also selectively has granted licenses for the manufacture and
distribution of certain other products under its brand names, including beauty
and beauty-related products, jeanswear, activewear, hosiery, intimate apparel,
eyewear and children's apparel.

RESULTS OF OPERATIONS

     The Company's business is comprised of wholesale, licensing and retail
activities. The Company utilizes a 52- or 53-week fiscal year ending on the
Sunday nearest December 31. The following discussion provides information and
analysis of the Company's results of operations for the three months ended April
1, 2001 and April 2, 2000.

     The following tables set forth certain segment data:

<Table>
<Caption>

                                                    THREE MONTHS ENDED
                                                  ----------------------
                                                   APRIL 1,     APRIL 2,
                                                     2001        2000
                                                   --------     --------
                                                         (IN MILLIONS)
<S>                                                <C>           <C>
Net revenues from external customers:
   By segments:
         Wholesale .........................        $133.2        $135.4
         Licensing .........................          14.0          10.4
         Retail ............................          25.8          27.0
                                                   --------     --------
                                                    $173.0        $172.8
                                                   --------     --------
                                                   --------     --------
   By geographic area:
         United States .....................        $100.5        $105.3
         Japan .............................           5.7           5.2
         Other .............................          66.8          62.3
                                                   --------     --------
                                                    $173.0        $172.8
                                                   --------     --------
                                                   --------     --------
Segment operating profit (loss):
           Wholesale .........................        $3.2(a)       $5.8
           Licensing .........................         7.9           4.5
           Retail ............................        (6.2)         (4.1)
                                                   --------     --------
                                                      $4.9          $6.2
                                                   --------     --------
                                                   --------     --------
</Table>

      (a) Includes $1.7 million in transaction costs related to the proposed
          LVMH merger.


                                       10
<Page>

     The following table sets forth certain condensed statement of income data:

<Table>
<Caption>
                                                       THREE MONTHS ENDED
                                               ------------------------------------
                                                   APRIL 1,             APRIL 2,
                                                     2001                 2000
                                               ---------------      ---------------
                                                       (DOLLARS IN MILLIONS)
<S>                                            <C>      <C>         <C>      <C>
  Net revenues .........................       $173.0    100.0%     $172.8    100.0%
                                               ------               ------
  Gross profit .........................         55.8     32.2        56.0     32.4
  Selling, general and administrative
      expenses .........................         50.9     29.4        49.8     28.8
  Operating income .....................          4.9      2.8         6.2      3.6
  Net income ...........................          2.5      1.5         3.3      1.9
</Table>

   NET REVENUES

     Net revenues for the three months ended April 1, 2001 increased $0.2
million, or 0.2%, to $173.0 million as compared to net revenues of $172.8
million in the corresponding prior-year period.

     Wholesale revenues for the three months ended April 1, 2001 decreased $2.2
million, or 1.6%, to $133.2 million as compared to $135.4 million in the
corresponding prior-year period. The decrease was attributable to a decrease in
sales from the women's and accessories businesses, partially offset by an
increase in sales from International DKNY Jeans and the menswear businesses.

     Licensing revenues for the three months ended April 1, 2001 increased $3.6
million, or 34.6%, to $14.0 million as compared to $10.4 million in the
corresponding prior-year period. The increase was primarily due to increased
royalties from the Company's new regional license in Asia and growth in sales of
certain other existing licensed products.

     Retail revenues for the three months ended April 1, 2001 decreased $1.2
million, or 4.5%, to $25.8 million as compared to $27.0 million in the
corresponding prior-year period. The decrease was primarily attributable to an
11.8% decrease in comparable store sales, partially offset by an increase in the
number of full-price freestanding retail stores.

   GEOGRAPHIC

     Net revenues for the United States for the three months ended April 1, 2001
decreased $4.8 million, or 4.5%, to $100.5 million as compared to $105.3 million
in the corresponding prior-year period. The decrease was primarily attributable
to decreased wholesale and retail revenues, partially offset by increases in
licensing revenues.

     Net revenues for Japan for the three months ended April 1, 2001 increased
$0.5 million, or 9.4%, to $5.7 million as compared to $5.2 million in the
corresponding prior-year period. The increase was primarily attributable to
increased wholesale revenues to Japan and increased royalties from the Company's
Japanese licensee.

     Net revenues for other geographic areas for the three months ended April 1,
2001 increased $4.6 million, or 7.3%, to $66.8 million as compared to $62.3
million in the corresponding prior-year period. The increase is attributable to
increased wholesale and licensing revenues.


                                       11
<Page>

   GROSS PROFIT
     Gross profit as a percentage of net revenues for the three months ended
April 1, 2001 was 32.2%, as compared to 32.4% for the corresponding prior-year
period. The decrease primarily reflects lower margins in the wholesale and
retail segments, partially offset by an increase in the higher margin licensing
business.

   SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
     Selling, general and administrative expenses increased to 29.4% of net
revenues for the three months ended April 1, 2001, as compared to 28.8% in the
corresponding prior-year period. Included in these costs, during the three
months ended April 1, 2001, is $1.7 million in transaction costs related to the
proposed LVMH Merger. Exclusive of these costs, selling, general and
administrative expenses were 28.4% of net revenues for the three months ended
April 1, 2001. The decrease was primarily a result of lower selling expenses in
the wholesale segment, partially offset by increased costs associated with the
growth in the number of full-price free-standing retail stores, as compared to
the prior-year period.

   OPERATING INCOME
     Operating income for the three months ended April 1, 2001 decreased $1.3
million, or 21.7%, to $4.9 million as compared to $6.2 million in the
corresponding prior-year period. Included in operating income, during the three
months ended April 1, 2001, is $1.7 million in transaction costs related to the
proposed LVMH Merger. Exclusive of these costs, operating income increased $0.4
million, or 5.5%, to $6.6 million for the three months ended April 1, 2001. The
increase was attributable to increased operating profit in the licensing
segment, partially offset by decreased operating profit in the wholesale
business and increased operating losses in the retail segment.

   INTEREST EXPENSE, NET
     Interest expense, net was $0.7 million for the three months ended April 1,
2001 as compared to $0.6 million for the corresponding prior-year period. The
increase was primarily attributable to an increase in average borrowings,
partially offset by lower interest rates, during the three months ended April 1,
2001, as compared to the corresponding prior-year period.

   PROVISION FOR INCOME TAXES
     The provision for income taxes represents Federal, foreign, state and local
income taxes. The effective income tax rate for the three months ended April 1,
2001 and April 2, 2000 was 39.0% and 41.0%, respectively. These rates reflect
the effects of state and local taxes, tax rates in certain foreign
jurisdictions, and certain nondeductible expenses.

    NET INCOME
     Net income for the three months ended April 1, 2001 decreased $0.8 million,
or 23.6%, to $2.5 million, as compared to $3.3 million in the corresponding
prior-year period. Included in net income, during the three months ended April
1, 2001, is $1.1 million, net of income taxes, in transaction costs related to
the proposed LVMH Merger. Exclusive of these costs, net income increased $0.3
million, or 7.4%, to $3.6 million for the three months ended April 1, 2001. The
increase was primarily attributable to increased net revenues and decreased
selling, general and administrative expenses.

LIQUIDITY AND CAPITAL RESOURCES

     The Company's principal sources of funds have historically been, and are
expected to continue to be, cash flow from operations and borrowings under its
revolving credit facility. The Company's principal need for funds is to finance
working capital (principally inventory and receivables), capital expenditures
(including the renovation of existing shop-in-shops and construction of new
shop-in-shops, outlet and full-price free-standing retail stores), and
investments in the start-up of new collections and the extension of existing
collections. At April 1, 2001, the Company had cash and cash equivalents of $6.4
million, as compared to $5.8 million at April 2, 2000.


                                       12
<Page>

     The Company has a $150.0 million revolving credit facility (the
"Facility"). The Facility is used for working capital requirements and
general corporate purposes. In February 2000, the Company amended the
Facility and extended its term to expire on May 1, 2003 (the Facility was
further amended in August 2001. See Note 1, Recent Developments, in the notes
to financial statements contained elsewhere herein.) At April 1, 2001, $41.8
million was outstanding under the Facility, as compared to $4.3 million
outstanding at April 2, 2000.

     Net cash used for operating activities was $50.6 million for the three
months ended April 1, 2001 as compared to $13.1 million in the corresponding
prior-year period. The increase in net cash used for operating activities
primarily reflects an increase in accounts receivable and inventory, and a
greater decrease in accounts payable and accrued expenses from the corresponding
prior year. Net cash used for investing activities increased $0.1 million for
the three months ended April 1, 2001 as compared to the corresponding prior-year
period, due to increased purchases of property and equipment. Financing
activities reflect borrowings under the Company's Facility, as well as the
proceeds from the exercise of stock options. Net cash provided by financing
activities was $41.9 million for the three months ended April 1, 2001, as
compared to $4.3 million in the corresponding prior-year period. The increase
was due to greater amounts outstanding under the Company's Facility in the
current period as compared with the corresponding prior-year period.

     As a matter of policy, the Company enters into forward exchange contracts
with parties that are major international banks and financial institutions that
have at least an "A" (or equivalent) credit rating. The Company's exposure to
credit loss in the event of nonperformance by any of the counterparties is
limited to only the recognized, but not realized, gains attributable to the
contracts. Management believes risk of loss is remote and in any event would be
immaterial. Costs associated with entering into such contracts have not been
material to the Company's financial results. The Company's measured
value-at-risk from holding such derivative instruments, using a
variance/co-variance model with a 95 percent confidence level, assuming normal
market conditions at April 1, 2001 was approximately $3.3 million.

     Capital expenditures, primarily for leasehold improvements and leasehold
improvements related to outlet and full-price free-standing retail stores,
equipment, machinery, computers and office furniture, were approximately $0.5
million and $0.4 million for the three months ended April 1, 2001 and April 2,
2000, respectively. As of May 7, 2001, the Company had outstanding commitments
for additional capital expenditures during fiscal 2001 of approximately $9.8
million. The Company anticipates that it will incur additional capital
expenditures in fiscal 2001 relating to its retail business initiatives and
other matters.

     The Company anticipates that it will be able to satisfy its ongoing cash
requirements for the foreseeable future with cash flow from operations,
supplemented by borrowings under its Facility. Events that may impact this
include, but are not limited to, future events that may have the effect of
reducing available cash balances (such as unexpected operating losses or
increased capital or other expenditures), as well as future circumstances that
might reduce or eliminate the availability of external financing.


                                       13
<Page>

FORWARD-LOOKING STATEMENTS

     Certain statements contained herein are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that have been made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. The words and phrases "will likely result," "are expected to," "will
continue," "is anticipated," "estimates," "projects," "believes," "plans" or
similar expressions, are intended to identify "forward-looking statements"
include, without limitation, the Company's expectations regarding sales,
earnings, or other future financial performance and liquidity, and general
statements about future operations and operating results. Although the
Company believes that its expectations are based on reasonable assumptions
within the bounds of its knowledge of its business and operations, there can
be no assurance that actual results will not differ materially from its
expectations. Factors that could cause actual results to differ from
expectations include, without limitation: (i) the failure of certain key
members of the Company's design teams or management, including Ms. Karan, to
continue to be active in the business of the Company; (ii) the failure to
consummate the proposed Merger with LVMH at all due to the failure of a
condition in the merger agreement or to consummate the merger on a timely
basis due to delays in the process of satisfying the conditions contained
therein, the possibility of a termination of the Company's license with
Gabrielle Studio, Inc., a bankruptcy of Gabrielle Studio, Inc., or transfer
of the stock of Gabrielle Studio, Inc. or a change in the relationship under
the agreement with Gabrielle Studio, Inc. following LVMH's purchase of
Gabrielle Studio, Inc.; (iii) the timing and expense associated with, and
effects, of the strategic initiatives being implemented by the Company and
risks associated with the timing, expense and/or changes in the Company's
strategic plan associated with the proposed merger; (iv) risks associated
with the receipt, pricing, and timing of customer orders; (v) general
competitive factors and risks associated with a downturn in the overall
financial condition of the apparel industry, the retail industry, and the
general economy; (vi) timing of and costs associated with new Company-owned
store openings and the Company's economic ability to continue to open new
stores; (vii) risks associated with the Company's increasing royalty revenues
as a percent of the Company's total revenues and net income and risks
associated with a lack of operational or financial control over the Company's
licensees; (viii) risks to the Company's existing wholesale businesses from
the Company's licensing of related products; (ix) a change in retailer or
consumer acceptance of the Company's products; (x) the variability of the
Company's results in any period due to the seasonal nature of the business,
the timing and level of the Company's sales, the timing of launch of new
products and collections and opening of new doors, fashion trends, and the
timing, terms, consummation, or success of any joint ventures, licenses, or
other dispositions of product lines; (xi) consolidation and restructuring in
the retail industry causing a decrease in the number of stores that sell the
Company's products, or an increase in the ownership concentration within the
retail industry; (xii) social, political and economic risks to the Company's
foreign operations and customers, including changes in foreign investment and
trade policies and regulations of the host countries and of the United
States; (xiii) changes in laws, regulations, and policies, including changes
in accounting standards, that affect, or will affect, the Company in the
United States and abroad; (xiv) foreign currency fluctuations affecting the
Company's results of operations and value of its foreign assets, the relative
price at which the Company and foreign competitors sell their products in the
same markets, and the Company's operating and manufacturing costs outside of
the United States; (xv) shipment delays, depletion of inventory, and
increased production costs resulting from disruption at any of the Company's
facilities or other causes; (xvi) changes in product mix to ones which are
less profitable; (xvii) infringements of the Company's trademarks and other
proprietary rights, imitations or diversions of the Company's products, or
inability to obtain trademark protection outside the United States for one or
more of the Company's marks; (xviii) political or economic instability
resulting in the disruption of trade from the countries in which the
Company's contractors, suppliers, licensees, or customers are located, the
imposition of additional regulations relating to imports, the imposition of
additional duties, taxes, and other charges on imports, significant
fluctuations of the value of the dollar against foreign currencies, or
restriction on transfer of funds; (xix) the inability of a contractor to
deliver the Company's products in a timely manner thereby causing the Company
to miss the delivery date requirements of its customers, which in turn could
result in the cancellation of orders, refusal to accept deliveries, or a
reduction in the selling price; or (xx) the violation of labor or other laws
by the Company, any independent manufacturer, or any licensee. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements made herein or elsewhere, whether as a result of new information,
future events or otherwise.



                                       14
<Page>

                                   SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                    DONNA KARAN INTERNATIONAL INC.
                                             (Registrant)



Date: August 21, 2001               By: /s/ Joseph B. Parsons
                                       ---------------------------
                                       Joseph B. Parsons
                                       Chief Financial and Operations Officer





                                       15