G-III quarterly sales, earnings surge; increases full-year guidance
G-III Apparel Group announced on Tuesday revenues for the first quarter surged by more than 30%, as consumers returned to work and resumed social activities, driving demand for the company's brands and products.
The New York-based company said net sales for the first quarter ending April 30 increased 32.5% to $688.8 million from $519.9 million in the prior year’s quarter. The company, which owns DKNY, Donna Karan and Karl Lagerfeld, reported net income of $30.6 million, or $0.62 per diluted share, compared to $26.3 million, or $0.53 per diluted share, in the prior year’s quarter.
“Our strong momentum continued in the first quarter of fiscal 2023 exceeding both our top and bottom line guidance, despite a challenging environment," said Morris Goldfarb, CEO of G-III. "Consumers are refreshing their wardrobes as they return to work and resume social activities, driving demand for our products. Our globally recognized power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld, combined with our ability to quickly pivot resources to respond to trends and deliver the right merchandise, position us well to capitalize on demand for products in the marketplace.”
Looking ahead, G-III raised its guidance for fiscal 2023. The company expects net sales of approximately $3.24 billion and net income between $205 million and $215 million, or between $4.23 and $4.33 per diluted share. This compares to net sales of $2.77 billion and net income of $200.6 million, or $4.05 per diluted share, last year.
“We remain extremely focused on our strategic priorities to deliver continued long-term profitable growth," added Goldfarb, whose company recently increased its stake in famed fashion house Karl Lagerfeld to take full ownership.
"Our recent Karl Lagerfeld acquisition has further expanded our portfolio of owned brands and our global presence. Our experienced senior leadership, world class teams and well-developed supply chain infrastructure set the stage for another strong year of market share gains and our ability to deliver on our raised outlook.”
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