Fri, Jun 6, 8:46 PM (14 days ago)
**G-III Apparel Group, Ltd. (GIII) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue decreased to $583.6 million from $609.7 million in Q1 2024. The decrease was driven by a reduction in wholesale operations, partially offset by increased retail sales. - **Profit Margins:** Gross profit margin was 42.2% in Q1 2025, slightly down from 42.5% in Q1 2024. Operating profit margin improved to 1.45% from 2.22%. - **Cash Flow:** Operating cash flow was $93.8 million, up from $45.5 million in Q1 2024, driven by net income and reductions in accounts receivable and inventories. - **Earnings:** Net income increased to $7.8 million from $5.8 million in Q1 2024. EPS was $0.18, up from $0.13. **Segment Performance:** - **Wholesale:** Revenue decreased to $562.6 million from $597.8 million, due to lower sales of Calvin Klein and Tommy Hilfiger licensed products, partially offset by increased sales of DKNY, Donna Karan, and Karl Lagerfeld products. - **Retail:** Revenue increased to $36.4 million from $30.5 million, driven by increased sales at Karl Lagerfeld Paris and DKNY stores. **Trends and Uncertainties:** - **Tariffs:** The U.S. imposed tariffs on imports, impacting sourcing and shipping. G-III is monitoring developments and exploring mitigation strategies. - **Supply Chain:** Global supply chain disruptions continue, affecting inventory receipts and shipping costs. - **Economic Factors:** Inflation and interest rates impact consumer spending and operational costs. **Future Operations:** - **Strategic Initiatives:** G-III is focusing on expanding owned brands, digital sales, and strategic acquisitions to drive growth. - **Financial Position:** As of Q1 2025, G-III had $257.8 million in cash and $480 million in available credit, with no borrowings under the revolving credit facility. **Material Weakness in Internal Control:** - A material weakness in IT general controls within the KLH subsidiary was identified, but it did not result in material misstatements in the financial statements. Remediation measures are underway. **Share Repurchase:** - G-III repurchased 807,437 shares for $19.7 million in Q1 2025, under a program authorized for up to 10 million shares.