Fri, Sep 6, 8:08 PM (106 days ago)
For the quarter ending July 31, 2024, G-III Apparel Group reported net sales of $644.8 million, a decline from $659.8 million in the previous year, primarily driven by decreased sales in Calvin Klein and Tommy Hilfiger products. However, the relaunch of Donna Karan and growth in DKNY and Karl Lagerfeld products partially offset these declines. Gross profit improved to $275.9 million, representing a 42.8% margin, up from 41.9% the previous year, aided by a favorable product mix and lower promotional activity. Operating expenses decreased to $229 million, reflecting reduced warehouse costs and lower advertising spend. Interest expenses fell significantly to $4.9 million, down from $9.5 million, due to increased investment income and reduced debt costs following the repayment of the LVMH Note. Net income rose to $24.2 million from $16.4 million year-over-year. Cash flow from operations was $94.8 million, supported by a cash position of $414.8 million and $530 million available under the credit facility. G-III also redeemed its $400 million Senior Secured Notes in August 2024, enhancing its liquidity position. The company is navigating challenges from inflation and supply chain disruptions while focusing on strategic growth through acquisitions and new licenses.