G-III Apparel Group, whose portfolio includes brands Calvin Kelin, Tommy Hilfiger, and Levi’s for the second quarter beat its “top and bottom-line guidance” and made progress on its strategic priorities, according to chair and CEO Morris Goldfarb.
Its net profit however shrunk to $16.4m from $36.3m the year earlier.
Goldfarb continued: “Our first half performance further validates G-III’s ability to successfully navigate what remains a dynamic environment. I am immensely proud of our team’s consistently strong execution.”
Key highlights from G-III Apparel Group Q2 results:
- Net sales of $659.8bn for the second quarter compared to $605.2bn last year
- Operating profit was reported at $31.5m from $31.3m the year before
- Net income: for the second quarter of $16.4m compared to $36.3m the prior year
Alongside the company’s results, it announced a strategic multi-year licence agreement with fellow US apparel company HanesBrands to manufacture an outwear collection for the Champion brand in North America.
“This license aligns with G-III’s core competencies in outerwear and will fit seamlessly into our well-developed outerwear divisions,” said Goldfarb.
G-III Apparel Group revised its guidance for the fiscal year ending 31 January 2024 and anticipates net sales of around £3.3bn in comparison to $3.23bn in the previous outlook.
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G-III Apparel Group now expects a FY24 net income in the range of $145m to $150m, or between $3.05 and $3.15 per diluted share. This compares to a loss for the same period a year earlier of $133.1m.
Goldfarb stated that closing out strong in the first half of the year has given the company confidence to once again raise its outlook.
Goldfarb explained: “Our balance sheet provides us with financial flexibility to invest in our business and consider additional opportunities.
“Agility is at the heart of everything we do at G-III and I am confident that we will continue to evolve, regardless of external factors. We will continue to drive our business forward and expect to deliver strong results for our shareholders.”