Fashion retailer G-III Apparel Group has reported declines in both sales and profit for the last fiscal year.

G-III owns 10 brands, including DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin, and licenses over 20 global fashion labels, including Calvin Klein, Tommy Hilfiger, Levi’s and Champion.

The company’s net sales for the year ended January 31 decreased 7 per cent to $2.96 billion. 

Net income was down from $193.6 million to $67.4 million, partly due to impairment charges and bad debt expense tied to the bankruptcy of Saks Global.

Fourth-quarter net sales slid 8.1 per cent to $771.5 million, while net income of $48.8 million in the year-ago period was replaced by a net loss of $31.9 million.

Morris Goldfarb, G-III’s Chairman and CEO, said the company delivered “solid performance despite a challenging environment”.

“Our go-forward portfolio produced strong results, led by our key owned brands, with higher quality revenue, improved full-price sell-throughs, and accelerating global relevance throughout the year. 

“I am proud of the results our team delivered and the meaningful progress we made advancing our long-term strategy,” Goldfarb said.

For the new fiscal year, the company expects net sales to decrease to $2.71 billion, reflecting a $470 million sales loss as it exits the Calvin Klein and Tommy Hilfiger businesses. Net income is expected to be between $88 million and $92 million.