G-III posts rebound in sales, predicts strong year
G-III Apparel Group, Ltd., the New York-based owner of the Donna Karan brand, reported a 28.3% rise in first-quarter net sales on Monday and provided a hopeful financial outlook for the full fiscal year, reflecting improving trends for lifestyle apparel, as consumers begin to return to normal activities.
The company’s net sales for the first quarter ended April 30, 2021, totaled $519.9 million, up from $405.1 million in the same period in the previous year.
Quarterly net income at G-III came to $26.3 million, or $0.53 per diluted share, compared to a net loss of $39.3 million, or $0.82 per share, a year earlier.
During the quarter, the company completed the restructuring of its retail operations segment, closing its Wilsons Leather and G.H. Bass stores, which together contributed a loss of $15.0 million, or $0.31 per diluted share, to G-III’s results in the first quarter of the previous year.
“We were pleased with our strong outperformance in the first quarter of this fiscal year. With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating and our overall business in North America is getting stronger,” said G-III chairman and CEO Morris Goldfarb in a release.
“We believe these trends provide a good indication for the remainder of the year and give us confidence that we and our industry are well on our way to recovery,” added the executive. “We believe we are well positioned to capitalize on consumer demand as the year progresses and are optimistic about this fiscal year.”
Looking forward, G-III expects to report net sales of approximately $460 million in the second quarter, compared to $297.2 million in the prior-year period. Net income for the quarter is expected to be in the range of $0.03 to $0.13 per diluted share, compared to a loss per share of $0.53 in the same period in the previous year.
For the full fiscal year, the company is predicting net sales of approximately $2.57 billion, up from $2.06 billion in the previous year. Net income is expected to be in the range of $125 million to $135 million, or $2.60 to $2.70 per diluted share, compared to net income of $23.5 million, or $0.48 per diluted share, last year.
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