Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $345 million, an increase of 8% year-over-year, marking the highest third-quarter net revenue in the company's history [4][14] - Comparable growth was 4.1%, indicating healthy underlying client demand and strong operational execution [14] - Gross profit reached $133.4 million, up 8.4% from the previous year, with a gross margin of 38.7%, reflecting product margin gains and improved operational efficiencies [17] - Net income was $12.2 million, growing 23.1% year-over-year, representing approximately 2.9 times earnings leverage on 8% net revenue growth [17] - Adjusted EBITDA was $31.2 million, up 35.2% year-over-year, with an adjusted EBITDA margin of 9.1% [18] Business Line Data and Key Metrics Changes - The fall 2025 collection was noted as the strongest launch in company history, contributing significantly to demand [5] - Upholstery, a core product line, saw exceptional performance, with nearly 70% sourced domestically, providing a competitive advantage [6][7] - Custom orders achieved the highest September total demand in company history, supported by strong reception to newly introduced upholstery collections [7] Market Data and Key Metrics Changes - September marked the highest total demand month in the company's history, with record levels of new product introductions [6] - Demand comparable growth for the quarter was 7.4%, reflecting the strength of the high-end client base [14] - October saw a moderation in demand comparable growth, down 14.8%, largely due to timing effects and promotional calendar shifts [16] Company Strategy and Development Direction - The company remains focused on disciplined profitability growth, innovation, and expanding its showroom footprint [12] - Showroom expansion is a foundational pillar of the long-term strategy, with plans to complete approximately 12-15 total showroom projects in 2025 [24] - The company is investing in technology infrastructure to enhance operational efficiency and improve client experience [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook despite macroeconomic uncertainties, emphasizing the strength of the brand and high-end client engagement [11][30] - The company anticipates a tariff impact of approximately $12 million for 2025, with expectations of $50-$60 million for 2026 [22][23] - Management highlighted the importance of maintaining quality and design standards while navigating pricing adjustments due to tariffs [46] Other Important Information - The company is committed to sustainability, focusing on responsibly sourced materials and collaboration with skilled artisans [10] - The digital transformation project is underway, with an investment of approximately $30 million planned through 2030 [26] Q&A Session Summary Question: Feedback on the Bath Collection and its impact on future product expansions - Management reported positive initial feedback on the Bath Collection, indicating it will be a staple part of the business and contribute to future growth [31][32] Question: Insights on the average store model evolution and productivity - Management discussed ongoing evolution of store designs to enhance customer experience, with Pasadena showroom serving as a prime example [33][34] Question: Clarification on October's demand decline and underlying trends - Management acknowledged the expected softness in October due to promotional shifts and pull-forward demand from September, emphasizing strong engagement from high-end clients [38][39] Question: Clarification on tariff impact estimates - Management confirmed the $50-$60 million annualized tariff impact is net of mitigation strategies, with ongoing efforts to protect margins through supplier negotiations [44][47] Question: CapEx guidance reduction and future expectations - Management explained the reduction in CapEx guidance was due to delays in technology initiatives and timing of showroom projects, maintaining a focus on showroom expansion [54][55]

Core Concept - The Fall 2025 campaign and collection of Donna Karan marks the 40th anniversary of the brand, focusing on five icons that embody the brand's enduring femininity [1][12]. Brand Identity - Donna Karan emphasizes a wardrobe that is effortless, sensual, and timeless for women across generations [1]. - The brand aims to empower women to feel comfortable and confident in their skin, allowing them to express their individuality [5]. Campaign Highlights - The campaign features Claudia Schiffer, Irina Shayk, Imaan Hammam, Liya Kebede, and Mariacarla Boscono, showcasing the strength and connection among women [6]. - The creative direction by Trey Laird and photography by Mikael Jansson highlight the complexity and style of contemporary women [10][12]. Collection Details - The Fall 2025 collection reinterprets classic silhouettes with sophisticated fabrics in city shades, including deep brown, chocolate plum, and metallics [7]. - Key pieces include a devoré velvet look, python-effect outerwear, tailored styles, and a showstopping gown of gold paillettes [8]. Accessories and Style - The collection is complemented by sculptural bags, refined footwear, and sleek sunglasses, enhancing the overall relaxed elegance [9]. - Each accessory piece offers a fresh take on timeless style, designed for the rhythm of New York [9]. Marketing Strategy - The campaign will utilize a diversified media mix across North America, including high-visibility digital platforms and premium outdoor displays [12]. - The collection will be available in select retailers and on DonnaKaran.com starting September 3, 2025 [12]. Brand Legacy - Donna Karan's designs celebrate the female form and have evolved to meet the needs of modern women while maintaining the brand's core aspects [11][14]. - The brand, now under G-III Apparel Group, continues to resonate with a broader audience globally [14].