Dive Brief:
- G-III Apparel Group reported net sales of $1.09 billion in Q3, marking a 1.8% year-over-year increase, according to a press release Tuesday. Net income for the period was $114.8 million, compared to $127.6 million last year.
- The company’s earnings per share results exceeded its expectations, which CEO Morris Goldfarb attributed to more than 30% organic growth at its owned brands, including DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin. Its net income per diluted share was $2.55.
- Following the results, the apparel conglomerate saw its shares jump 8.8% on Tuesday.
Dive Insight:
G-III, which also owns licensing rights for Halston, raised its full-year outlook based on the higher-than-expected results for EPS, Goldfarb said in the release. It now expects diluted EPS between $4.08 and $4.18, up from its prior outlook of between $3.94 and $4.04.
The company reaffirmed its revenue outlook. For the remainder of its 2025 fiscal year, which ends on Jan. 31, G-III expects net sales to increase by about 2% year over year to $3.15 billion. It expects net income to be between $185 million and $190 million.
The company’s inventory decreased 10% to $532.5 million in Q3. Its total debt decreased 52% to $224.2 million.
“Our proven track record of success and our strong balance sheet give us ample flexibility to invest in long-term opportunities to expand our business, while delivering on our commitment to drive long-term sustainable growth and shareholder value,” Goldfarb said in the release.
This year, the company has been eyeing international expansion opportunities. In June, G-III bought a 12% ownership stake in Madrid-based All We Wear Group, which the company said at the time was a growth opportunity in the Spain and Portugal markets. Later, G-III boosted its ownership stake in All We Wear Group to about 19%.
In September, G-III landed a licensing deal with Nike for Converse apparel. At the time, the company said it hoped the deal would help it reach a different consumer.
