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Core Insights - G-III Apparel Group, Ltd. is a New York-based fashion company known for brands like Donna Karan, DKNY, and Karl Lagerfeld, managing the entire process from design to distribution across both owned and licensed brands [1] Company Overview - The company operates a diverse portfolio of fashion brands, focusing on both design and distribution, which allows it to maintain a strong market presence [1] Investment Focus - The analysis emphasizes a focus on small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies to provide a broader market perspective [1]

Core Viewpoint - G-III Apparel Group reported better-than-expected earnings for the first quarter, with adjusted earnings per share of 19 cents, surpassing analyst expectations of 12 cents, despite a 4% year-over-year decline in quarterly sales to $583.61 million, which still exceeded the Street's estimate of $580.37 million [1][2]. Financial Performance - The company experienced double-digit growth in key owned brands such as DKNY, Karl Lagerfeld, and Donna Karan, which helped offset losses from exiting the Calvin Klein jeans and sportswear businesses [2]. - G-III Apparel has withdrawn its profit guidance for FY26 due to tariff impacts and macroeconomic uncertainties, anticipating a $135 million unmitigated tariff hit, primarily in the second half of the fiscal year [2]. - The company maintains its FY2026 sales guidance at $3.14 billion, slightly above the $3.12 billion estimate [2]. Future Expectations - G-III Apparel expects lower sales in the first half of fiscal 2026 compared to the previous year, with an anticipated acceleration in the second half [3]. - For the second quarter, the company projects earnings per share between $0.02 and $0.12, with revenue expected to be around $570 million, below the $621 million estimate [3]. Stock Performance and Analyst Ratings - Following the earnings announcement, G-III Apparel shares fell by 2.7%, trading at $21.90 [3]. - Analysts have adjusted their price targets for G-III Apparel: Telsey Advisory Group lowered its target from $30 to $27, Keybanc reduced its target from $40 to $30, and Barclays cut its target from $21 to $18 [6][8].

Core Insights - G-III Apparel Group, Ltd. (GIII) reported first-quarter fiscal 2026 results with net sales decreasing and earnings increasing year over year, surpassing the Zacks Consensus Estimate for both top and bottom lines [1][3][10] Financial Performance - Adjusted earnings per share (EPS) reached 19 cents, exceeding the Zacks Consensus Estimate of 12 cents, and increased by 58.3% from the previous year's adjusted EPS of 12 cents [3][10] - Net sales decreased by 4.3% year over year to $583.6 million, beating the consensus estimate of $580 million [3][10] - Gross profit fell by 4.8% year over year to $246.5 million, with a gross margin decline of 30 basis points to 42.2% [4] - SG&A expenses decreased by 2.2% year over year to $231.5 million, primarily due to lower advertising expenses [5] - Adjusted EBITDA declined by 12.6% year over year to $19.5 million, with an adjusted EBITDA margin decrease of 40 basis points to 3.3% [6] Segment Performance - The wholesale segment reported net sales of $563 million, down from $598 million in the previous year, with a gross margin of 40.4%, down from 40.9% [7] - The retail segment recorded net sales of $36 million, up from $31 million in the prior year, with a gross margin improvement to 53.5% from 47% [8] Guidance and Future Outlook - For fiscal 2026, net sales are expected to be $3.14 billion, a decrease from $3.18 billion in fiscal 2025, with lower sales anticipated in the first half and growth expected in the second half [12] - Projected net sales for the second quarter of fiscal 2026 are approximately $570 million, down from $644.8 million in the prior year, attributed to supply-chain challenges [13] - Net income for the fiscal second quarter is projected to be between $1 million and $6 million, significantly lower than the previous year's net income of $24.2 million [14] Financial Position - G-III Apparel ended the fiscal first quarter with cash and cash equivalents of $257.8 million and total debt of $18.7 million, with total stockholders' equity at $1.68 billion [11]

Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share increased to $0.19 from $0.12 year-over-year, exceeding guidance [13][37] - Net sales for the quarter were $584 million, down from $610 million in the same period last year, aligning with expectations [35] - Gross margin percentage was 42.2%, slightly down from 42.5% in the previous year [35][36] - Non-GAAP net income for the first quarter was $8.4 million compared to $5.8 million in the previous year [37] - Ending cash and availability was approximately $740 million, indicating a strong financial position [13][38] Business Line Data and Key Metrics Changes - Wholesale segment net sales decreased to $563 million from $598 million year-over-year [35] - Retail segment net sales increased to $36 million from $31 million in the previous year [35] - Key owned brands, including DKNY, Karl Lagerfeld, and Donna Karan, experienced double-digit growth, offsetting losses from exited businesses [5][14] Market Data and Key Metrics Changes - International markets are seen as significant growth opportunities, particularly in Europe [14][22] - The brand Donna Karan saw nearly 50% sales growth, with strong performance in dresses and suit separates [15][16] - DKNY and Karl Lagerfeld also reported strong sales growth, particularly in North America and Europe [20][22] Company Strategy and Development Direction - The company is focused on driving growth through its owned brands, which are expected to be sustainable long-term profit drivers [13][14] - Strategic initiatives include sourcing diversification, vendor negotiations, and selective price increases to mitigate tariff impacts [7][39] - The company is also enhancing its omni-channel capabilities and optimizing its global store footprint [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer environment despite macroeconomic uncertainties [6][33] - The potential unmitigated tariff impact for fiscal 2026 is estimated at approximately $135 million, with ongoing efforts to mitigate this through various strategies [7][39] - The company remains committed to investing in key owned brands and growth initiatives despite challenges [12][33] Other Important Information - The company successfully renegotiated favorable lease terms for corporate offices and is streamlining its warehouse network [11] - The planned relaunch of the Sonya Riquel brand was postponed due to uncertainties in the operating environment [12][54] Q&A Session Summary Question: Pricing Power and Areas for Price Increases - Management indicated strong cooperation from retailers in adjusting pricing, focusing on areas where consumers will accept price increases [45][46] Question: Impact of Sonya Riquel Postponement on Guidance - The decision to postpone the Sonya Riquel launch was made to avoid losses, but strength in other brands allows the company to maintain its sales guidance [53][54][75] Question: Inventory Levels and Supply Chain Challenges - Inventory levels are expected to align with sales growth, with management actively managing inventory purchases in light of supply chain disruptions [78][80] Question: Promotions and Consumer Demand - Management does not anticipate significant pressure on promotions, citing strong demand for their products and effective management of inventory levels [84][85]

Core Viewpoint - G-III Apparel Group reported solid first-quarter results for fiscal 2026, with earnings exceeding guidance, driven by strong performance in key owned brands despite the exit from Calvin Klein jeans and sportswear [2][3]. Financial Performance - Net sales for the first quarter decreased by 4% to $583.6 million compared to $609.7 million in the prior year [3][9]. - Net income for the first quarter was $7.8 million, or $0.17 per diluted share, up from $5.8 million, or $0.12 per diluted share, in the prior year [3][9]. - Non-GAAP net income per diluted share was $0.19, compared to $0.12 in the same period last year, excluding one-time severance expenses [4][9]. Balance Sheet Highlights - Inventories decreased by 5% to $456.5 million compared to $479.7 million last year [5]. - Total debt significantly decreased by 96% to $18.7 million from $426.4 million, following the redemption of $400 million in senior secured notes [6]. Capital Allocation - The company repurchased 807,437 shares for $19.7 million during the first quarter [7][9]. Outlook - G-III reaffirmed its net sales guidance for fiscal 2026, expecting approximately $3.14 billion in net sales, down from $3.18 billion in fiscal 2025 [10]. - The company anticipates net sales for the second quarter to be around $570 million, impacted by supply chain challenges [11]. - Net income for the second quarter is projected to be between $1.0 million and $6.0 million, a decrease from $24.2 million in the prior year [12].

Financial Data and Key Metrics Changes - First quarter net sales reached $4.6 billion, exceeding guidance of $4.4 billion to $4.5 billion, with a decline of 5.1% year-over-year [7][27] - Adjusted diluted EPS was $0.16, above the guidance range of $0.12 to $0.15, compared to $0.27 last year [9][32] - Comparable sales (comps) declined 1.2%, better than the guidance of a decline of 4.5% to 2.5% [7][27] - Gross margin was $1.8 billion or 39.2% of net sales, flat compared to the prior year [31] Business Line Data and Key Metrics Changes - Macy's net sales were down 6.5% with comps down 2.1% [28] - Bloomingdale's net sales increased by 2.6% with comps rising 3.8% [30] - Blue Mercury's net sales were up 0.8% with comps increasing 1.5% [30] - Backstage outperformed full-line stores by several hundred basis points, while Marketplace achieved approximately 40% GMV growth [11] Market Data and Key Metrics Changes - International tourism negatively impacted comps by about 30 basis points [8] - Go forward business comps declined 0.9%, outperforming total comps [8] - The luxury segment showed resilience with Bloomingdale's and Blue Mercury continuing positive comp trends [12][14] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, emphasizing omni-channel performance and improving customer experience [6][10] - The strategy includes strengthening and reimagining Macy's, accelerating luxury offerings, and modernizing operations [10][14][15] - The company aims to diversify sourcing to mitigate tariff impacts, reducing reliance on China from over 50% pre-pandemic to 20% currently [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter, noting improved performance in May compared to earlier months [43][44] - The company anticipates a more choiceful consumer and plans to navigate a competitive promotional landscape [21][34] - Management highlighted the importance of maintaining a healthy inventory to sales ratio while being disciplined with inventory commitments [21][22] Other Important Information - The company closed 64 underperforming locations last year as part of its strategy [24] - Capital expenditures are expected to be approximately $800 million, reflecting a commitment to long-term growth [37] - The company plans to return approximately $152 million to shareholders through dividends and share repurchases [33] Q&A Session Summary Question: Sales guidance and consumer pressure - Management reaffirmed annual sales guidance, noting stronger performance in March and April compared to February, with cautious optimism for the rest of the year [43][44] Question: Strategic pricing decisions - Pricing adjustments are being made selectively, with a focus on maintaining value for consumers while navigating tariff impacts [45][46] Question: Impact of tariffs on pricing - Pricing is gradually being integrated into the system, with limited pricing seen in Q2, and negotiations with vendors are ongoing [50][51] Question: Actions to capture market share - The company is focusing on product diversity, improved marketing, and enhanced in-store experiences to capture market share [59][62] Question: Inventory planning amid tariffs - The company plans to remain disciplined with inventory flow and avoid over-purchasing to mitigate tariff impacts [86][87] Question: Consumer health across income cohorts - Consumer health remains under pressure, but discretionary spending is showing signs of improvement, particularly in categories like fine jewelry [108][110]

Interparfums, Inc. (IPAR) reported first-quarter 2025 results, wherein the bottom line beat the Zacks Consensus Estimate. Both earnings and sales increased year over year. The company continues to gain from sustained consumer demand for its key fragrance brands and the launch of innovative new scents.IPAR maintained steady inventory levels while accelerating raw material conversion to finished goods in anticipation of potential supply chain constraints. To offset recent tariffs, the company is realigning it ...

Inter Parfums (IPAR) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Karin Daly - Investor RelationsJean Madar - Chairman, CEO & Co-FounderMichel Atwood - CFOAshley Helgans - Senior Vice PresidentHamed Khorsand - Principal Conference Call Participants Susan Anderson - Managing Director & Senior AnalystKorinne Wolfmeyer - Vice President & Senior Equity Research Analyst - Beauty and WellnessLuca Codagnone - Analyst Operator Greetings, and welcome to the Interperform's First Quarter twenty ...

Inter Parfums (IPAR) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Speaker0 Greetings, and welcome to the Interperform's First Quarter twenty twenty five Conference Call and Webcast. At this time, participants are in a listen only mode. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to your host, Karen Daley, Vice President at The Equity Group and Interpoliform's Investor Relations representative. Please go ahead, Karen. Speaker1 Thank you, Kevin. Joining us on ...