Karl Lagerfeld owner G-III sees FY23 sales surge despite losses
G-III Apparel Group, owners of DKNY and Karl Lagerfeld, remains "confident and optimistic" despite a reported net loss of £27.3 million ($33.1 million) in FY 2023.
G-III also holds a number of fashion licenses for well known brands including the Calvin Klein, Tommy Hilfiger, Kenneth Cole, Guess?, Kensie, Jessica Simpson, Levi's and Dockers.
With expertise in design, sourcing, and manufacturing, the global fashion leader reported net sales for the fiscal year ending 31 January 2023 increased 16.6% to £2.66 billion ($3.23 billion), rising from £2.28 billion ($2.77 billion) in the prior year.
The company reported a net loss for the fiscal year of £109.7 million ($133.1 million), compared to net income of £165.4 million ($200.6 million) the prior year.
Net sales for the fourth quarter increased 14.2% to £704.3 million ($854.4 million) from £616.8 million ($748.2 million) the year prior. G-III reported a net loss for the fourth quarter of £215.2 million ($261.1 million), compared to net income of £39.9 million ($48.4 million) the year prior.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, commented: "In fiscal year 2023, we made significant progress on our strategic priorities as we leveraged G-III’s expertise and agility to capture a number of opportunities, despite a challenging environment.
"We successfully shifted our category focus based on market demand and expanded our brand ownership and global reach with our Karl Lagerfeld acquisition."
The company also issued guidance for the fiscal year 2024. It anticipates net sales of approximately £2.66 billion ($3.23 billion) and net income between £96.4 million ($117 million) and £100.5 million ($122 million).
In addition, the company plans to expand DKNY, which it acquired in 2016, and Nautica, which it acquired in 2018.
Mr. Goldfarb added: "We have been directing resources toward several new opportunities and are pleased to announce two new initiatives: the re-positioning and expansion of the Donna Karan brand and a new long-term license with Authentic Brands Group for Nautica. Donna Karan and Nautica are two of the most recognised American lifestyle brands with significant opportunity in the women’s space.
"Our track record of having successfully grown major brands to more than $3 billion in net sales today, gives us confidence in our ability to unlock the potential of both Donna Karan and Nautica."