G-III Apparel Group started off the year on an up note, posting a nearly $10 million profit on the strength of record sales, compared to a loss in the prior-year period.
In a Nutshell: G-III Apparel Group Ltd. turned around a first quarter loss last year with a strong gain in net income and its highest volume ever in the first three months of the year. The apparel and accessories company, with owned-brands that include Donna Karan, DKNY, Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard, increased its prior guidance for the 2019 fiscal year, forecasting net sales of about $2.97 billion and net income between $112 million and $117 million. The company, which also operates stores under the DKNY, Wilsons Leather, G. H. Bass, Vilebrequin, Calvin Klein Performance and Karl Lagerfeld Paris names, had previously forecast net sales of about $2.94 billion and net income between $97 million and $102 million for the year ended Jan. 31, 2019.
G-III, which also has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Ivanka Trump, Kensie, Levi’s and Dockers brands, is projecting full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal 2019 between $236 million and $246 million. This compares to its previous forecast of adjusted EBITDA between $218 million and $227 million.
Sales: Net sales for the first quarter ended April 30 increased 16 percent to a first quarter record of $611.7 million compared to $529 million in the year-ago period. For the second quarter ended July 31, the company estimated net sales to be $590 million, and said they’d either have a net loss of $3.5 million or net income of $1.5 million. This forecast compares to net sales of $538 million and a net loss of $8.6 million reported for the second quarter of fiscal 2018.
Earnings: Net income for the quarter was $9.9 million compared to a net loss of $10.4 million in the prior year’s comparable period. The company, which also has licenses with the four major sports leagues and 150 U.S. colleges and universities, also had an operating profit of $23.08 million in the quarter compared to an operating loss of $5.53 million in the prior-year period.
CEO’s Take: Morris Goldfarb, chairman and CEO, said: “Strong brands, quality product, diversified distribution and great execution continue to be our winning formula. We are excited to see the momentum continue and have increased confidence in our outlook for the remainder of this year. We believe our long-term growth opportunities have never been more compelling and we remain focused on capturing market share, driving growth, improving profitability and creating exceptional value for our shareholders.”