G-III Apparel Group Ltd. is making a comeback.
The firm, parent to the DKNY and Donna Karan brands, among others, revealed first quarter earnings Monday before the market opened, improving on top-line revenues and turning last year’s losses into a profit. The stock shot up nearly 7 percent in pre-market hours as a result.
“We were pleased with our strong outperformance in the first quarter of this fiscal year,” Morris Goldfarb, G-III’s chairman and chief executive officer, said in a statement. “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.”
Total sales for the three-month period ending April 30 increased more than 28 percent to about $520 million, up from $405 million during fiscal year 2021’s first quarter. The company logged $26.3 million in profits as a result, compared with losses of $39.2 million a year earlier.
G-III ended the quarter with more than $396 million in cash and cash equivalents and nearly $2.4 billion in long-term debt.
Chloe Resort 2022
The group is now expecting its current quarter revenues to be about $460 million, up from $297 million a year ago. For the full fiscal year, G-III is anticipating revenues of about $2.57 billion, compared with $2.06 billion during the 2021 fiscal year. Full-year income is expected to be between $125 million and $135 million, or between $2.60 and $2.70 a diluted share, compared with 2021’s full-year profits of $23.5 million, or $0.48 a diluted share.
“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,” Goldfarb said. “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.”
G-III — which also includes luxury swimwear brand Vilebrequin, Eliza J, Jessica Howard, Andrew Marc and Marc New York in the greater portfolio, in addition to fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s and Dockers brands — permanently closed all of its Wilsons Leather and G.H. Bass stores (nearly 200 locations) last year.
The company’s stock, which closed down 2.18 percent to $31.44 a share Friday, is up more than 88 percent, year-over-year.
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