G-III Apparel Group full year sales up 1.8 percent

G-III Apparel Group’s net sales for the fiscal year ended January 31, 2017 were up 1.8 percent to 2.39 billion dollars from 2.34 billion dollars in the prior year. The company reported GAAP net income for the fiscal year of 51.9 million dollars or 1.10 dollars per diluted share, compared to 114.3 million dollars or 2.46 dollars, in the prior year.

Fourth quarter net loss stood at 20.1 million dollars or 0.42 dollar per share, compared to net income of 8 million dollars or 0.16 dollar per diluted share, in the fourth quarter last year. “Fiscal 2017 was another important year for our company. We completed the acquisition of Donna Karan, which made us the owner of two of the world’s most iconic and recognizable power brands in Donna Karan and DKNY. Our non-outerwear wholesale business performed well in the face of significant headwinds as the traditional retail environment has become increasingly disrupted as a result of evolving consumer buying behavior and continued penetration of e-commerce,” commented Morris Goldfarb, Chairman and Chief Executive Officer of G-III Apparel Group in a statement.

The company said, sales growth over the prior year was primarily the result of increases in the company’s wholesale non-outerwear business and net sales from the Donna Karan International (DKI) business in the last two months of the fiscal year and was offset, in part, by softer demand for outerwear and a decline in net sales in the company’s retail businesses. On an adjusted basis, non-GAAP net income per diluted share for the full fiscal 2017 year decreased to 1.42 dollars from 2.44 dollars in the prior fiscal year.

For the fourth quarter ended January 31, 2017, net sales increased by 14.4 percent to 603 million dollars from 527 million dollars in the fourth quarter last year.

For fiscal 2018, G-III Apparel Group is forecasting net sales of approximately 2.73 billion dollars and net income between 40 million and 45 million dollars or between 0.80 dollar and 0.90 dollar per diluted share. The company is projecting full-year adjusted EBITDA for fiscal 2018 between 162 million dollars and 171 million dollars compared to adjusted EBITDA of 148.1 million dollars in fiscal 2017. This adjusted EBITDA guidance includes a full-year loss of approximately 20 million dollars associated with the Donna Karan business.

For the first fiscal quarter ending April 30, 2017, the company is forecasting net sales of approximately 500 million dollars and a net loss between 20 million dollars and 25 million dollars, or between 0.41 dollar and 0.51 dollar per share. This forecast compares to net sales of 457 million dollars and net income of 2.8 million dollars or 0.06 dollar per diluted share, reported in the first quarter of fiscal 2017.

The company anticipates that it will incur losses from the Donna Karan operations during the first half of fiscal 2018 that will be partially offset by growth in operating profitability beginning in the third quarter as the Company begins shipments and re-launches DKNY and Donna Karan products. “While our near-term financial outlook reflects the dilutive impact of our recent acquisition of Donna Karan, we believe the mid-year re-launch of the DKNY and Donna Karan brands will have a positive impact in the second half of the year,” added Goldfarb.

DKNY Spring 2017 ad campaign

CPP-LUXURY iOS App