G-III reports double-digit growth for 2017
G-III Apparel ended the year with double-digit growth, following a standout sales year.
Net sales for the fiscal year ended January 31, 2018 increased 17.6 percent to $2.81 billion from $2.39 billion in the prior year. Approximately $258 million of net sales came from the DKNY and Donna Karan business (DKI), which was acquired last year from LVMH. The company said net income for the fiscal year was $62.1 million, or $1.25 per diluted share.
For the fourth quarter, net sales also increased by 18.5 percent to $715 million, of which $85 million was related to the DKI business.
Meanwhile, the company reported a fourth quarter GAAP net loss of $542,000, or $(0.01) per share, due to charges relating to the acquisition of the Donna Karan brand and other asset impairment charges.
In addition to DKNY, the apparel group owns brands Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard, as well as other fashion licenses, a team sports business and retail stores under several banners.
Morris Goldfarb, G-III’s Chairman and CEO noted that its fashion licenses under Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris also contributed to the strong growth.
“We are pleased to have finished with better results than last year, particularly as a result of our power brands: Calvin Klein, Tommy Hilfiger, DKNY, Donna Karan and Karl Lagerfeld Paris. The strength of these businesses is enabling us to grow profitably despite the pressures of a persistently challenging environment.”
“We are focused on improving the results of our specialty retail operations. In that regard, we continue to implement our strategy to improve productivity and streamline operations. We believe that significant growth in our wholesale businesses should continue to propel us to higher sales and profits over the next several years,” said Goldfarb.
For fiscal 2019, the company is forecasting net sales of approximately $2.94 billion and net income between $97 million and $102 million, or between $1.90 and $2.00 per diluted share.
Meanwhile, for its upcoming quarter the company is forecasting net sales of approximately $570 million and a net loss between $2.0 million and $7.0 million, or $(0.04) to $(0.14) per share.
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