G-III Apparel observed significant improvements in sales performance across all its brands and channels in Q3.
This positive trend was especially evident during the key Black Friday period, when its products were well-received by consumers. Additionally, increased marketing efforts led to higher levels of consumer engagement.
For the quarter concluding on 31 October 2024, G-III Apparel's net sales saw a modest uptick of 1.8%, reaching $1.09bn, a slight increase from the $1.07bn reported in the corresponding quarter of the previous year.
Net income attributable to G-III for Q3 FY25 was recorded at $114.76m, down from the $127.64m achieved in the same period last year. Its earnings per diluted share (EPS) also reflected this decline, standing at $2.55 for Q3 FY25 compared to $2.74 in Q3 FY24.
On an adjusted basis, non-GAAP net income per diluted share was calculated at $2.59 for the third quarter of FY25, down from $2.78 reported in the same quarter of the previous year.
Operating profit for G-III Apparel during this period was reported at $166.33m, which represented a reduction from the $190.28m posted in Q3 FY24.
Similarly, gross profit experienced a marginal decline to $432.13m from the $433.41m reported in last year's third quarter.
A notable decrease of 10% in inventories was observed by the end of Q3 FY25, with figures settling at $532.5m compared to $591.5m in the same quarter of the prior year.
In terms of debt management, total debt witnessed a significant reduction by 52%, concluding at $224.2m at the end of this year's third quarter as opposed to $461.9m in the third quarter of last year.
G-III's chairman and chief executive officer Morris Goldfarb said: "I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over 30% organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin."
Last year, the core owned brands along with the rest of the portfolio, achieved around $1.8bn in net sales and the company anticipates strong double-digit growth for these brands this year. Including new product launches, it expects a long-term net sales potential of over $5bn.
Goldfarb added: "Our teams continue to demonstrate strong execution despite a challenging consumer environment, unseasonable weather and supply chain disruptions. As we have progressed into the fourth quarter, we have experienced strengthening sell-throughs across our brands, and our inventories are well-positioned to support demand for the remaining holiday and early spring season."