G-III Apparel Group, Ltd. (GIII) seems a promising pick, thanks to its robust business strategies with digital expansion and brand strength. The company has been undertaking several strategies, including acquisitions and licensing of well-known brands, to expand its product portfolio.  Management is optimistic about the company’s diversified portfolio of key brands, namely DKNY, Donna Karan, Karl Lagerfeld, Vilebrequin, Levi’s, Nautica and Halston.Let’s delve deeper.Detailing StrategiesG-III Apparel’s strat ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

A month has gone by since the last earnings report for G-III Apparel Group (GIII) . Shares have added about 12.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is G-III Apparel due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. G-III Apparel’s Q3 Earnings Beat, Sales Im ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the period ended October 31, 2023, showing improved financial health and operational efficiency [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (Unaudited) | Balance Sheet Item | Oct 31, 2023 (in thousands) | Oct 31, 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $197,391 | $150,719 | ▲ 30.9% | | Inventories | $591,530 | $900,987 | ▼ 34.3% | | Goodwill | $0 | $303,668 | ▼ 100% | | Total Assets | $2,749,333 | $3,290,221 | ▼ 16.4% | | Total Liabilities | $1,247,520 | $1,667,922 | ▼ 25.2% | | Total Stockholders' Equity | $1,503,220 | $1,622,258 | ▼ 7.3% | - Inventories decreased significantly to **$591.5 million** as of October 31, 2023, from **$901.0 million** a year prior, indicating improved inventory management[9](index=9&type=chunk) - Goodwill was fully impaired and written down to **zero** as of October 31, 2023, from **$303.7 million** as of October 31, 2022[9](index=9&type=chunk)[47](index=47&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q3 Performance (Three Months Ended Oct 31) | Metric | 2023 (in thousands) | 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1,067,110 | $1,078,299 | ▼ 1.0% | | Gross Profit | $433,413 | $344,627 | ▲ 25.8% | | Operating Profit | $190,288 | $97,214 | ▲ 95.7% | | Net Income Attributable to G-III | $127,640 | $61,103 | ▲ 108.9% | | Diluted EPS | $2.74 | $1.26 | ▲ 117.5% | Year-to-Date Performance (Nine Months Ended Oct 31) | Metric | 2023 (in thousands) | 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,333,460 | $2,372,300 | ▼ 1.6% | | Gross Profit | $959,866 | $819,592 | ▲ 17.1% | | Operating Profit | $237,038 | $183,008 | ▲ 29.5% | | Net Income Attributable to G-III | $147,314 | $128,056 | ▲ 15.0% | | Diluted EPS | $3.13 | $2.62 | ▲ 19.5% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (Nine Months Ended Oct 31) | Cash Flow Activity | 2023 (in thousands) | 2022 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $226,271 | ($415,330) | Significant Improvement | | Net cash used in investing activities | ($19,305) | ($211,125) | ▼ 90.9% | | Net cash (used in) provided by financing activities | ($199,084) | $322,174 | Reversal from borrowing to repayment | - The significant improvement in operating cash flow was primarily driven by a **$117.8 million** decrease in inventories, compared to a **$355.3 million** increase in the prior-year period[14](index=14&type=chunk)[178](index=178&type=chunk) - Investing activities in the prior year included **$168.6 million** for the acquisition of Karl Lagerfeld Holding B.V. (KLH)[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company acquired the remaining **81%** interest in Karl Lagerfeld Holding B.V. (KLH) on May 31, 2022, for approximately **$207.6 million**, with the goodwill of **$84.3 million** recognized from this acquisition fully impaired in fiscal 2023[41](index=41&type=chunk)[44](index=44&type=chunk)[47](index=47&type=chunk) - Total debt decreased to **$465.1 million** as of Oct 31, 2023, from **$889.8 million** a year prior, with the company repaying **$75.0 million** of the LVMH Note on June 1, 2023, and the remaining **$50.0 million** on December 1, 2023[52](index=52&type=chunk)[70](index=70&type=chunk) - The company's business is divided into two reportable segments: **Wholesale Operations** and **Retail Operations**, with Wholesale Operations generating **$1.05 billion** in net sales and Retail Operations generating **$32.7 million** for Q3 2023[79](index=79&type=chunk)[80](index=80&type=chunk) - In August 2023, the Board of Directors increased the share repurchase program authorization to **10,000,000 shares**, and for the nine months ended October 31, 2023, the company repurchased **1,598,568 shares** for **$26.1 million**[177](index=177&type=chunk) [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes the company's financial performance, highlighting improved gross margin and net income, strategic brand initiatives, and strong liquidity with reduced debt [Overview and Recent Developments](index=31&type=section&id=Overview%20and%20Recent%20Developments) - The company is focused on repositioning and expanding the **Donna Karan** brand for a Spring 2024 launch, aiming to create a modern system of dressing for a woman's full lifestyle needs[102](index=102&type=chunk) - G-III has recently entered into several long-term license agreements to expand its brand portfolio[103](index=103&type=chunk)[105](index=105&type=chunk)[108](index=108&type=chunk) - **Nautica:** A long-term license for North America, with first deliveries expected in January 2024, starting with women's jeanswear[103](index=103&type=chunk)[104](index=104&type=chunk) - **Halston:** A 25-year global master license, with first deliveries expected in Fall 2024[105](index=105&type=chunk)[106](index=106&type=chunk) - **Champion:** A 5-year license for men's and women's outerwear in North America, with first deliveries for the Fall 2024 season[108](index=108&type=chunk)[109](index=109&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q3 2023 vs Q3 2022 Performance Analysis | Metric | Q3 2023 | Q3 2022 | Key Drivers | | :--- | :--- | :--- | :--- | | Net Sales | $1.07B | $1.08B | Decrease in Calvin Klein/Tommy Hilfiger sales, partially offset by growth in DKNY/Karl Lagerfeld | | Gross Margin | 40.6% | 32.0% | Absence of $26.7 million in prior-year demurrage charges and lower freight costs | | SG&A Expenses | $236.3 million | $239.9 million | Decrease of $9.0 million in third-party warehouse expenses due to lower inventory | Nine Months 2023 vs 2022 Performance Analysis | Metric | 9M 2023 | 9M 2022 | Key Drivers | | :--- | :--- | :--- | :--- | | Net Sales | $2.33B | $2.37B | Decrease in Calvin Klein/Tommy Hilfiger sales, partially offset by full-period consolidation of Karl Lagerfeld ($110.2 million) | | Gross Margin | 41.1% | 34.5% | Absence of $30.8 million in prior-year demurrage charges and lower freight costs | | SG&A Expenses | $703.5 million | $616.4 million | Increase of $72.8 million from full-period consolidation of KLH | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) - As of October 31, 2023, the company had **$197.4 million** in cash and cash equivalents and approximately **$645 million** in availability under its revolving credit facility[152](index=152&type=chunk) - Operating activities generated **$226.3 million** in cash during the first nine months of fiscal 2024, a significant turnaround from a use of **$415.3 million** in the prior-year period, primarily due to a **$117.8 million** reduction in inventory[178](index=178&type=chunk)[179](index=179&type=chunk) - The company fully repaid its **$125 million** LVMH Note, with a **$75 million** payment on June 1, 2023, and the final **$50 million** payment on December 1, 2023[150](index=150&type=chunk)[169](index=169&type=chunk) - Under its share repurchase program, the company acquired **1.6 million shares** for **$26.1 million** during the nine months ended October 31, 2023, with the program authorization increased to **10 million shares** in August 2023[177](index=177&type=chunk)[181](index=181&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risk disclosures since the last Annual Report on Form 10-K - There are no material changes to the market risk disclosures from the Annual Report on Form 10-K for the year ended January 31, 2023[186](index=186&type=chunk) [Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective, with ongoing integration of internal controls for the acquired KLH business - The CEO and CFO concluded that the company's disclosure controls and procedures are effective[187](index=187&type=chunk) - The integration of internal controls for the acquired Karl Lagerfeld (KLH) business is in process and will be included in the annual assessment for fiscal year 2024[189](index=189&type=chunk) [Part II - Other Information](index=53&type=section&id=Part%20II%20OTHER%20INFORMATION) [Risk Factors](index=53&type=section&id=Item%201A.Risk%20Factors) The company reports no material changes to its risk factors from those previously disclosed in its Annual Report on Form 10-K - As of October 31, 2023, there have been no material changes in risk factors from those set forth in the Annual Report for the year ended January 31, 2023[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, which saw an increased authorization but no public repurchases during the quarter - In August 2023, the Board of Directors increased the authorization for the company's share repurchase program to **10,000,000 shares**[194](index=194&type=chunk) - No shares were repurchased under the publicly announced program during the three-month period ended October 31, 2023[193](index=193&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-18183 G-III APPAREL GROUP, LTD. (Exact name of registrant as specified in its charter) Delaware 41-1590959 (Stat ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 or Commission File Number: 0-18183 G-III APPAREL GROUP, LTD. (Exact name of registrant as specified in its charter) Delaware 41-1590959 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 512 Seventh Avenue, New York, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE Commission file number 0-18183 G-III APPAREL GROUP, LTD. (Exact name of registrant as specified in its charter) SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware (State or other jurisdiction of incorporation or or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 0-18183 G-III APPAREL GROUP, LTD. (Exact name of registrant as specified in its charter) Delaware 41-1590959 (S ...

G-III Apparel Group, Ltd. (NASDAQ:GIII) Q2 2023 Earnings Conference Call September 7, 2022 8:30 AM ET Company Participants Neal Nackman - Chief Financial Officer and Treasurer Morris Goldfarb - Chairman and Chief Executive Officer Conference Call Participants Edward Yruma - Piper Sandler Will Gartner - Wells Fargo Jay Sole - UBS Paul Kearney - Barclays Noah Zatzkin - KeyBanc Capital Markets Operator Good day and thank you for standing by. Welcome to the G-III Apparel Group Second Quarter Fiscal 2023 Earning ...

Financial Data and Key Metrics Changes - Net sales for the first quarter were $689 million, an increase of 33% compared to last year's first quarter net sales of $520 million, exceeding guidance by approximately 15% [8][31] - Non-GAAP net income was $0.72 per diluted share compared to $0.50 per share in the first quarter last year [10][37] - Gross margin percentage was 35.7% in the first quarter, down from 37.6% in the previous year due to inflationary cost increases [32][34] - Net income for the quarter was $30.6 million or $0.62 per diluted share compared to $26.3 million or $0.53 per diluted share in last year's first quarter [36] Business Line Data and Key Metrics Changes - Wholesale operations segment net sales increased approximately 33% to $681 million from $512 million last year [31] - Retail operations segment net sales were $28 million for the first quarter, up 44% compared to net sales of $19 million in last year's first quarter [31] - The handbag business for Calvin Klein, DKNY, and Karl Lagerfeld Paris saw significant growth, with Karl Lagerfeld handbags doubling in distribution [13] Market Data and Key Metrics Changes - Digital sales for the quarter were up approximately 60% compared to pre-pandemic levels [16] - Direct-to-consumer sales for Vilebrequin were up strong double digits compared to pre-pandemic levels, and wholesale nearly doubled [23] Company Strategy and Development Direction - The company is focused on driving power brands across categories, expanding its portfolio through ownership and licensing opportunities, and maximizing omnichannel opportunities [49] - The acquisition of Karl Lagerfeld is expected to enhance growth and geographic reach, with anticipated annual royalty income of over $65 million [15][28] - The company is developing its European-based brand portfolio and expanding Vilebrequin's presence with new stores [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in business and future growth opportunities, raising the full fiscal year 2023 guidance to approximately $3.24 billion in net sales [28][40] - The company is optimistic about market share gains as life returns to normal, despite challenges such as inflation and supply chain issues [5][39] Other Important Information - Inventory levels are up approximately 59% compared to last year, primarily driven by in-transit inventory [37] - The company ended the quarter with a lower net debt position of $83 million compared to $118 million in the prior year [38] Q&A Session Summary Question: Can you talk about the Karl Lagerfeld brand more in detail? - The anticipated operating margin for Karl Lagerfeld is mid-single digits, with potential to reach mid-double digits over time [52] - The brand has a direct-to-consumer mix of about 60% [53] Question: Can you elaborate on the gross margin expectations? - Gross margins are expected to improve as inflationary pressures ease and price increases are implemented [61] - Both Tommy Hilfiger and Calvin Klein are performing well, with high demand for polished products [63] Question: What are you seeing in terms of department store orders? - Department stores are managing inventory differently, focusing on turn rather than surplus, leading to better margins [67] - The company is creating a significant global footprint with its brands, particularly with the acquisition of Karl Lagerfeld [69]