G-III Apparel reported a 4% decrease in net sales from $3.23bn to $3.10bn for the fiscal year ended 31 January 2024.

Operating profit was $283.3m, up from an operating loss of $109.5m in FY23. G-III’s net income was $176.2m, up from a net loss of $133.1m in the prior year.

G-III highlighted that last year’s results include a $291.5m non-cash goodwill impairment charge, net of tax.

Morris Goldfarb, chairman and CEO of G-III Apparel Group, believes the company’s diverse business model and disciplined operating approach has allowed it to further strengthen its credit profile.

Goldfarb said: “This year was important for G-III as we began to execute on our path for the future, while delivering strong profitability. We delivered strong growth with DKNY, Karl Lagerfeld and Vilebrequin, increasing penetration of our higher margin, owned brands to 47% of fiscal 2024 net sales, up from 40% last year.”

Goldfarb also announced new growth initiatives, with the launch of its Donna Karan brand and three new additions to its portfolio, Nautica, Halston and Champion outerwear. All of these brands have been recently brought to the market, with first results expected in fiscal 2025.

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G-III Apparel’s Q4 in brief

  • Net sales decreased 10.5% to $764.8m from $854.4m in Q4 2023.
  • Operating profit was $46.31m, up from an operating loss of $292.5m in Q4 2023.
  • Net income was $28.9m, compared to a net loss of $261.1m in the same quarter last year.

Expanding brand portfolio and outlook for 2025 and Q1 FY25

G-III Apparel also shared its outlook for the fiscal year ending 31 January 2025. It anticipates approximately $60m in incremental expenses, primarily associated with the launches of Donna Karan, Nautica and Halston.

The company said that approximately 65% of these expenses are related to marketing initiatives to support the Donna Karan and DKNY brands. The remaining costs are largely related to technology and talent.

For fiscal 2025, G-III Apparel expects net sales of approximately $3.20bn and net income between $167m and $172m. This compares to net sales of $3.10bn and net income of $176.2m for fiscal 2024.

Full year adjusted EBITDA for fiscal 2025 is expected to be between $290m and $295m, compared to adjusted EBITDA of $324.1m in fiscal 2024.

G-III Apparel also highlighted that for the first quarter (Q1) of fiscal 2025, it forecasts net sales of approximately $615m and expects its net loss to be between $5m and break-even.

Goldfarb explained that, as the company plans to build new brands, it will invest in high-impact marketing to support their launches, as well as in talent and technology to enhance the operational capabilities.

Goldfarb added: “We have the financial flexibility to invest in our growth, and in our new initiatives as well as to explore strategic opportunities. I am confident in our path forward and in our ability to deliver long-term growth.”

In December 2023, G-III Apparel reported a 1% decline in its third-quarter (Q3) net sales and named Dana Perlman as its new chief growth and operations officer.