G-III Apparel said its third-quarter (Q3) earnings, which ended 31 October 2023, surpassed expectations but its revenue missed the mark.
The company said the earnings growth was supported by strength across its wholesale segment, prudent inventory management and financial discipline.
“Our solid year-to-date results showcase G-III’s ability to successfully navigate challenging market conditions and give us the confidence to raise our full-year earnings per share guidance,” said chairman and CEO Morris Goldfarb.
Key highlights from G-III Apparel’s Q3 results
- Net sales of $1.07bn compared to $1.08bn the prior year
- Operating income increased to $190.3m from $97.2m in 2022
- Net income came up to $127.4m from $60.8m last year
G-III Apparel raises guidance for fiscal 2024
For fiscal year 2024 G-III Apparel anticipates net sales of around $3.15bn and net income between $175m and $180m, or between $3.75 and $3.85 per diluted share.
This compares to net sales of $3.23bn and a net loss of $133.1m, or $2.79 per share, for fiscal 2023.
The company expects non-GAAP net income for fiscal 2024 between $182m and $187m, or between $3.90 and $4.00 per diluted share. This compares to non-GAAP net income of $138.8m, or $2.85 per diluted share, for fiscal 2023.
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G-III Apparel is projecting full-year adjusted EBITDA for fiscal 2024 between $317m and $322m compared to adjusted EBITDA of $266.1m in fiscal 2023.
Goldfarb continued: “Over the last twelve months, we have made significant progress accelerating our strategic priorities.
“We are developing and are on track with four new growth initiatives to drive our business including the expansion of our owned Donna Karan brand, a long-term license for Nautica in North America, a master global licensing agreement for Halston, and a multi-year outerwear license for Champion.”
G-III appoints new chief growth and operations officer
G-III Apparel stated that Perlman’s appointment, which will be effective from 8 January 2024, will leverage her more than 20-year career span in apparel, strategy, and finance to drive innovation, optimise operations, and identify new opportunities for the company.
She will oversee strategy, finance, communications, IT, and other functions as part of the company’s leadership team in this newly created role.
Goldfarb commented: “As we focus on new opportunities to evolve our business, I am pleased to welcome Dana to G-III Apparel. With impressive experience and a strong track record of success leading strategy, finance and business development, she brings a wealth of industry expertise and is well-equipped to support our plans.”
Perlman has a decade of experience at PVH Corp. Before that, she held various positions in investment banking at Barclays Capital, Lehman Brothers, and Credit Suisse First Boston. She is currently a director at O’Reilly Automotive Inc. and has previously served on the board of Sigma Lithium Corp.
Commenting on her new appointment at G-III Apprel, Perlman said: “I look forward to working with Morris and the entire team to further enhance the company’s strategy and financial and operating performance, as well as advance its competitive position for the future.”