G-III Apparel Group, Ltd. reported net sales for the first quarter ended April 30, 2024 were $609.7 million compared to $606.6 million in the prior-year quarter.

Net income for the first quarter was $5.8 million, or 12 cents per diluted share, compared to $3.2 million, or 7 cents per diluted share, in the prior-year quarter.

Non-GAAP net income per diluted share was 12 cents for the first quarter, compared to 13 cents in the same period last year. There were no non-GAAP adjustments during the first quarter of fiscal 2025.

Non-GAAP net income per diluted share in the first quarter of fiscal 2024 excludes expenses of $1.8 million related to the Karl Lagerfeld transaction that includes incentive compensation and non-cash imputed interest expense of $1.8 million related to the note issued to the seller as part of the consideration for the acquisition of Donna Karan International. The aggregate effect of these exclusions was equal to 6 cents per diluted share in last year’s first quarter.

Morris Goldfarb, G-III’s chairman and CEO, said, “We had a strong start to fiscal 2025, delivering first-quarter earnings per diluted share well ahead of our expectations. Our performance was driven by double-digit increases in DKNY and Karl Lagerfeld, along with a successful relaunch of Donna Karan, reflecting our commitment to investing in our owned brands and our ability to meet the ever-changing needs of our consumers.

“Looking ahead, we remain cautiously optimistic and are reaffirming our fiscal year 2025 net sales and raising our guidance for net income per diluted share. This morning’s announcement of the amendment and extension of our ABL credit facility further solidifies our financial position. With approximately $1 billion in cash and availability, we are well-positioned to continue to invest in our brands and infrastructure to drive long-term growth and shareholder value,” concluded Goldfarb.

Outlook
Today, June 6, the company updated its outlook for the fiscal year ending January 31, 2025. This outlook continues to anticipate approximately $60.0 million in incremental expenses, primarily associated with the launches of Donna Karan, Nautica and Halston. Approximately 65 percent of these expenses are related to marketing initiatives to support the Donna Karan and DKNY brands. The remaining costs are principally associated with technology and talent to expand operational capabilities.

Fiscal 2025
For fiscal 2025, GIII expects net sales of approximately $3.20 billion and net income between $170.0 million and $175.0 million, or between $3.58 and $3.68 per diluted share; this compares to net sales of $3.10 billion and net income of $176.2 million, or $3.75 per diluted share, for fiscal 2024.

Non-GAAP net income for fiscal 2025 is expected to be between $170.0 million and $175.0 million, or between $3.58 and $3.68 per diluted share; this compares to non-GAAP net income of $189.8 million, or $4.04 per diluted share, for fiscal 2024.

Full-year adjusted EBITDA for fiscal 2025 is expected to be between $295.0 million and $300.0 million compared to adjusted EBITDA of $324.1 million in fiscal 2024.

Second Quarter Fiscal 2025
For the second quarter of fiscal 2025, GIII expects net sales of approximately $650.0 million compared to $659.8 million in the same period last year. Net income is expected to be between $10.0 million and $15.0 million, or between 22 cents and 32 cents per share; this compares to net income of $16.4 million, or $0.35 per diluted share, in last year’s second quarter.

Non-GAAP net income for the second quarter of fiscal 2025 is expected to be between $10.0 million and $15.0 million, or between $0.22 and $0.32 per share; this compares to non-GAAP net income of $18.6 million, or $0.40 per diluted share, for the second quarter of fiscal 2024.

Non-GAAP Financial Measures
Reconciliations of GAAP net income to non-GAAP net income, GAAP net income per diluted share to non-GAAP net income per diluted share and GAAP net income to adjusted EBITDA are presented in tables accompanying the financial statements included in this release and provide useful information to evaluate the company’s operational performance. A description of the amounts excluded on a non-GAAP basis is provided in conjunction with these tables. Non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA should be evaluated in light of the company’s financial statements prepared in accordance with GAAP.

G-III Apparel Group, Ltd. owns and licenses a portfolio of over 30 brands, including, DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin, and licenses over 20 brands, including Calvin Klein, Tommy Hilfiger, Nautica, Halston, and National Sports leagues, among others.

Image courtesy Donna Karan