G-III Apparel Group reported earnings in the first quarter that topped internal targets as sales grew 28.3 percent.

Morris Goldfarb, G-III’s chairman and chief executive officer, said, “We were pleased with our strong outperformance in the first quarter of this fiscal year. With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating and our overall business in North America is getting stronger. We believe these trends provide a good indication for the remainder of the year and give us confidence that we and our industry are well on our way to recovery. We believe we are well-positioned to capitalize on consumer demand as the year progresses and are optimistic about this fiscal year.”

Goldfarb concluded, “Reflecting upon the last year and the difficult challenges posed by the global pandemic, it is impressive to see how effectively we navigated through this period, demonstrating the power and diversification of G-III’s business to adapt and succeed in any environment. As the world reopens, we are in a strong financial position, which we believe will allow us to fund our growth domestically and internationally and enable us to take advantage of opportunities that arise.”

Net sales for the first quarter ended April 30, 2021, increased 28.3 percent to $519.9 million from $405.1 million in the prior year’s quarter. G-III has projected sales of $460.0 million. The company reported net income for the first quarter of $26.3 million, or $0.53 per diluted share, compared to a net loss of $39.3 million, or 82 cents per share, in the prior year’s quarter. The company had expected EPS in the range of 5 cents to 15 cents a share.

The company completed the restructuring of its retail operations segment and has closed the Wilsons Leather and G.H. Bass stores. Included in the company’s results for the first quarter of last year are net losses from the Wilsons Leather and G.H. Bass store operations of $15.0 million, or 31 cents per diluted share. These results reflect the direct store operations including impairment charges, but do not include any allocated corporate overhead charges, shared administrative expenses or shared distribution expenses. These operating results for Wilsons Leather and G.H. Bass are presented solely to provide the historical operating results of the portion of the company’s retail operations segment that was closed and are not intended to be used to develop expectations for future results of the company or to indicate any future level of profitability of the company.

Outlook
For fiscal 2022, G-III Apparel is forecasting net sales of approximately $2.57 billion which compares to $2.06 billion last year. Last fiscal year’s net sales included $91.8 million from the Wilsons Leather and G.H. Bass stores. Net income for fiscal 2022 is expected to be between $125 million and $135 million, or between $2.60 and $2.70 per diluted share. This compares to a net income of $23.5 million, or $0.48 per diluted share, last year. The results last year included a net loss per diluted share of $1.14 associated with the Wilsons Leather and G.H. Bass store operations.

For the second quarter of the current 2022 fiscal year, we expect net sales of approximately $460 million, which compares to $297.2 million in the same period last year. Last year’s net sales for the second quarter included $19.7 million from the Wilsons Leather and G.H. Bass stores. Net income for the second quarter of the fiscal year 2022 is expected to be in the range of $0.03 and $0.13 per diluted share. This compares to a net loss of $(0.31) per share in last year’s second quarter, which included a net loss per share of  53 cents a share associated with the Wilsons Leather and G.H. Bass store operations.

G-III’s owned brands include DKNY, Donna Karan, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc, and Marc New York. G-III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi’s, and Dockers brands. Through its team sports business, G-III has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League, and over 150 U.S. colleges and Universities. G-III also distributes directly to consumers through its DKNY, Karl Lagerfeld Paris, and Vilebrequin stores.

Photo courtesy G-III/DKNY