For fiscal 2023, G-III Apparel now expects net sales of about $3.24bn and net income between $205m and $215m. This compares to net sales of $2.77bn and net income of $200.6m last year. The guidance is inclusive of about $140m in net sales and net income of approximately $0.10 per diluted share in connection with the acquisition of the Karl Lagerfeld brand for seven months of ownership in this fiscal year.
G-III completed its acquisition of the remaining 81% interest in Karl Lagerfeld for EUR200m, subject to certain adjustments, on 2 June.
Announcing the move last month, G-III said the acquisition adds about $200m in initial annual sales.
What’s more, G-III believes that the combined revenues of G-III’s Karl Lagerfeld business (previously 19%) and the acquired Karl Lagerfeld business represent an annual net revenue potential of approximately $1bn or in excess of $2bn in sales to end consumers, and that this acquisition will expand G-III’s global presence.
Meanwhile, G-III said this week net sales for the first quarter ended 30 April increased 32.5% to $688.8m from $519.9m in the prior year’s quarter. The company reported net income of $30.6m, compared to $26.3m last time.
Morris Goldfarb, G-III’s chairman and CEO said: “Our strong momentum continued in the first quarter of fiscal 2023 exceeding both our top and bottom-line guidance, despite a challenging environment. Consumers are refreshing their wardrobes as they return to work and resume social activities, driving demand for our products. Our globally recognised 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 capitalise on demand for products in the marketplace.
“We remain extremely focused on our strategic priorities to deliver continued long-term profitable growth. 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.”