G-III Apparel Group raises fiscal year outlook as it joins forces with Champion
G-III Apparel Group, the parent company of DKNY, Karl Lagerfeld, Calvin Klein and more, has today announced “strong” results for the second quarter of fiscal 2024, ending 31 July 2023.
The experts in design, sourcing, and manufacturing published its finances, revealing net sales for the second quarter increased by 9% to £528.3 million ($659.8 million( from £484.6 million ($605.2 million) in the prior year’s quarter.
Net income totalled £13.1 million ($16.4 million), or £0.28 ($0.35) per diluted share, compared to £29 million ($36.3 million), or £0.59 ($0.74) per diluted share, in the prior year’s quarter.
Non-GAAP net income per diluted share was £0.32 ($0.40) compared to £0.31 ($0.39) in the same period last year.
Morris Goldfarb, Chairman and Chief Executive Officer at G-III, commented: "For the second quarter of fiscal 2024, we once again beat both our top and bottom line guidance and made progress on our strategic priorities. 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."
With this, the company has raised its guidance for the fiscal year, ending 31 January 2024.
G-III expects net sales of approximately £2.64 billion ($3.30 billion) and net income between £116 million ($145 million) and £120 million ($150 million) billion. This compares to net sales of £2.59 billion ($3.23 billion) and a net loss of £106.5 million ($133.1 million) for fiscal 2023.
It is anticipating non-GAAP net income for fiscal 2024 between £121 million ($152 million) and £125 million ($157 million). This compares to non-GAAP net income of £111.1 million ($138.8 million) for fiscal 2023. Adjusted EBITDA for fiscal 2024 is expected to sit between between £227 million ($284 million) and £231 million ($289 million).
Goldfarb also made the following announcement: "We are pleased to announce our newest license agreement with HanesBrands to produce an outerwear collection for the Champion brand. Champion is a well-recognized iconic American brand. Our collections will feature quality heritage pieces that complement and enhance Champion’s principles of self-expression. This license aligns with G-III's core competencies in outerwear and will fit seamlessly into our well-developed outerwear divisions."
He concluded: "G-III closed out a strong first half of our year, giving us confidence to once again raise our outlook. Our balance sheet provides us with financial flexibility to invest in our business and consider additional opportunities."
