Core Insights - G-III Apparel Group, Ltd. reported second-quarter fiscal 2025 earnings that exceeded the Zacks Consensus Estimate, while sales fell short of expectations and declined year over year [1][4]. Financial Performance - Adjusted earnings were 52 cents per share, surpassing the Zacks Consensus Estimate of 28 cents, and increased by 30% from the previous year's adjusted earnings of 40 cents per share [4]. - Net sales decreased by 2.3% year over year to $644.8 million, missing the consensus estimate of $650 million [4]. - The wholesale segment generated net sales of $620 million, down from $639 million in the prior year, while the retail segment saw an increase to $37 million from $34 million despite the closure of nine stores [5]. Margins and Expenses - Gross profit decreased by 0.3% year over year to $275.9 million, but gross margin expanded by 90 basis points to 42.8% due to higher sell-throughs and greater penetration of higher-margin owned brands [6]. - The wholesale segment's gross margin improved to 41.2% from 40.6% year over year, while the retail segment's gross margin rose to 54.4% from 50.5% [7]. - SG&A expenses declined by 4.3% year over year to $229 million, with a decrease in SG&A as a percentage of net sales to 35.5% [8]. Financial Position - At the end of the fiscal second quarter, the company had cash and cash equivalents of $414.8 million, total debt of $414 million, and total stockholders' equity of $1.51 billion [10]. - Inventory decreased by 24.1% year over year to $610.5 million [10]. Shareholder Actions - During the second quarter, the company repurchased 1,180,328 shares of its common stock for a total cost of $31.6 million [11]. Future Guidance - For the third quarter of fiscal 2025, the company expects net sales of $1.10 billion and adjusted net income between $98 million and $103 million, with adjusted earnings projected to be between $2.20 and $2.30 per share [12]. - The company reaffirmed its fiscal 2025 net sales guidance of approximately $3.2 billion, indicating a growth of about 3% from the previous year, driven by owned brands and new initiatives [13]. - Adjusted net income for fiscal 2025 is expected to be between $180 million and $185 million, with adjusted earnings projected between $3.95 and $4.04 per share [14]. - Adjusted EBITDA for fiscal 2025 is now projected to be between $305 million and $310 million, an increase from previous estimates [15]. - The outlook anticipates approximately $60 million in additional expenses related to new brand launches and marketing initiatives [16].

Shares of the apparel company gained on better-than-expected quarterly profits. Shares of G-III Apparel (GIII 22.62%) were on the move today, jumping after the apparel licensing company posted better-than-expected results in its fiscal 2025 second-quarter earnings report. As of 1:03 p.m. ET, the stock was up 24.3% on the news. G-III soars again Revenue in the quarter ended July 31 continued to decline at G-III, falling 2% to $644.8 million, which was below estimates at $649.4 million. G-III owns brands like ...

Financial Data and Key Metrics Changes - Net sales for the second quarter were $645 million, slightly down from $660 million in the same period last year, but in line with expectations [23] - Gross margin rate expanded by 90 basis points to 42.8%, driven by strong sell-throughs and higher margin-owned brands [6][24] - Non-GAAP net income was $23.8 million or $0.52 per diluted share, compared to $18.6 million or $0.40 per diluted share in the previous year [25] - Inventory decreased by approximately 24% to $610 million from $805 million last year, indicating a strong inventory position [25][26] - The company ended the quarter with no debt, a significant improvement from a net debt of $268 million in the previous year [26][27] Business Line Data and Key Metrics Changes - Wholesale segment net sales were $620 million, down from $639 million, primarily due to declines in Calvin Klein and Tommy Hilfiger businesses [23] - Retail segment net sales increased to $37 million from $34 million, despite the closure of nine stores [23] - The gross margin percentage for the retail operations segment improved to 54.4% from 50.5% due to lower promotions [24] Market Data and Key Metrics Changes - The company reported strong growth in its own brands, particularly in North America, with mid-teens growth compared to last year [9] - Donna Karan's North American launch exceeded expectations, with plans to expand to 500 doors across 1,200 points of sale [10][12] - DKNY experienced a high-single-digit sales increase, particularly in North America, and is gaining market share [12][14] Company Strategy and Development Direction - The company is focusing on organic growth of its own brands and new licensed opportunities, including a significant agreement with Converse, Inc. [5][7] - The strategy includes expanding the Go Forward portfolio to diversify the business model across product categories and geographies [5][9] - The company is actively managing the transition of Calvin Klein and Tommy Hilfiger licenses while investing in its own brands [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the raised outlook for the second half of the year, citing strong momentum and a solid financial position [4][21] - The company is cautiously optimistic about the remainder of the fiscal year, reaffirming net sales guidance of $3.2 billion, a growth of approximately 3% [27][28] - Management highlighted the importance of controlling supply chain dynamics and monitoring market conditions [21][30] Other Important Information - The company increased its investment in AWWG, raising its ownership stake to just under 20% [8] - The partnership with AWWG is expected to drive significant sales growth in the Iberian market over the next three to five years [9] - The company is experiencing elevated SG&A levels due to investments in marketing and brand development [20][31] Q&A Session Summary Question: Opportunity for Converse license and inventory composition - Management highlighted the Converse license as a significant opportunity, leveraging existing talent and global distribution capabilities [34] - Inventory levels are well-managed, with no imbalances between licensed and owned brands, and slight increases expected in Q3 and Q4 [36] Question: Confidence in Q4 growth and outperforming categories - Management expressed confidence in Q4 growth, citing the successful launch of new initiatives and strong performance from own brands [40] - Donna Karan's launch was noted as particularly successful, with plans for further expansion [41] Question: SG&A spending and investment cycle - SG&A is expected to increase in the second half due to advertising and warehouse expenses, with a focus on supporting brand growth [45] - The marketing spend is significant but necessary for scaling the business, with expectations for it to stabilize as sales grow [46] Question: Order book visibility in U.S. vs. Europe - The order book is more elastic in North America, while European business is currently tighter on inventory [47] Question: Size expectations for Donna Karan and EPS guidance - Management anticipates Donna Karan could reach $1 billion in sales, with a conservative outlook [49] - The EPS guidance increase is attributed to lower interest expenses and share repurchases [52] Question: Distribution expansion for licensed brands - The AWWG partnership will enhance distribution capabilities for brands like Pepe and Hackett, targeting both North America and Europe [56] Question: Freight costs and supply chain insights - Freight costs are expected to rise in Q3, with some delays in lead times, but these have been factored into guidance [59]

G-III Apparel Group (GIII) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.40 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 85.71%. A quarter ago, it was expected that this clothing and accessories maker would post a loss of $0.05 per share when it actually produced earnings of $0.12, delivering a surprise of 340%. Over the last fo ...

Net Sales of $644.8 Million for the Second Quarter Compared to $659.8 Million Last Year Second Quarter GAAP and Non-GAAP Net Income Per Diluted Share Exceed Guidance Raises GAAP and Non-GAAP Net Income Per Diluted Share Guidance for Fiscal Year 2025 Repaid $400 Million Senior Secured Notes Due August 2025 Repurchased 1.2 Million Shares of the Company's Common Stock for $31.6 Million Announces New Global Apparel License for the Converse Brand NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- G-III Apparel Group, ...

G-III Apparel Group, Ltd. (GIII) is strategically positioned for continued growth and profitability through its aggressive digital and omnichannel expansion, strong performance in wholesale and retail segments and significant partnerships such as the one with AWWG. The company's focus on enhancing its European presence, reducing reliance on PVH brands and targeting high-growth markets like India and China is likely to drive success. With a solid financial foundation, robust brand performance and a commitmen ...

ozgurdonmaz Generally speaking, I try to stay away from companies in the apparel/clothing space. This is a highly competitive market, and fickle consumer tastes can mean the difference between thriving and dying. But every so often, I find a firm that I turn bullish on. Back in August 2023, very close to a year ago today, I rated G-III Apparel Group, Ltd. (NASDAQ:GIII) a "buy." The company had seen some disappointing financial performance leading up to that point, and I said that shares would be on watch fo ...

G-III Apparel Group, Ltd. (GIII) has showcased impressive resilience over the past year, with its shares gaining 28.8%. This growth contrasts sharply with the 10% decline in the Zacks Textile - Apparel industry. The company's success can be attributed to its robust omnichannel strategies, expansive market reach and adept financial management. GIII's operational prowess has also helped it outperform the broader Zacks Consumer Discretionary sector and the S&P 500's respective growth of 6.5% and 26.3%. Closing ...

This past spring, Donna Karan New York relaunched the brand with the "In Women We Trust" campaign, breathing new life into its story and legacy. The campaign featured multiple generations of women as brand storytellers, resonating deeply with a broad audience and giving the brand immediate relevance. Building on its success this past spring, Donna Karan enhances its storytelling for Fall 2024 by embracing women's dimensional nature—strong yet sensual, powerful, and passionate. This deep emotional connection ...

G-III Apparel Group, Ltd.'s (GIII) focus on digital growth, market expansion and robust brand management positions it for sustained success. The company's enhanced omnichannel capabilities, key partnerships and investments in high-growth markets are expected to drive significant sales growth. Strong performances in both wholesale and retail segments, coupled with successful brand initiatives like DKNY and Karl Lagerfeld, underscore its competitive edge. The continued reduction in reliance on PVH brands and ...