Tue, Dec 10, 9:51 PM (221 days ago)
G-III Apparel Group, Ltd. (GIII) reported a mixed quarterly performance for the period ending October 31, 2024. Net sales increased slightly to $1,087 million from $1,067 million year-over-year, with wholesale operations contributing $1,067 million, driven by strong sales in DKNY and Karl Lagerfeld products. Retail sales rose to $42 million, despite a reduction in store count from 62 to 51. Gross profit margins decreased slightly to 39.8%, primarily due to product mix, although retail margins improved to 52.3%. SG&A expenses rose to $259 million, influenced by increased compensation and advertising costs related to the Donna Karan relaunch. Interest expenses dropped significantly to $6.4 million following the redemption of $400 million in senior secured notes, leading to net income of $114.8 million, down from $127.4 million in the prior year. Cash flow from operations was negative at $17 million, largely due to increased accounts receivable and inventory. G-III maintains a strong liquidity position with $104.7 million in cash and $480 million available under its revolving credit facility. The company faces uncertainties from inflation, interest rates, and geopolitical tensions, which may impact future operations and consumer demand.