G-III Apparel Group’s net income surged despite lower net sales in the third quarter of FY24.
The company, known for its DKNY, Calvin Klein and Tommy Hilfiger brands, saw net sales of $1.07 billion, down 1.04 per cent from the year-ago quarter. Attributable net income, however, surged 108.89 per cent to $127.6 million.
“For the third quarter of fiscal 2024, we delivered strong profitability, well exceeding our earnings per diluted share guidance, driven by strength across our wholesale segment, our prudent inventory management and our financial discipline,” said Morris Goldfarb, chairman and CEO at G-III Apparel Group.
For the full fiscal year, the company expects net sales to decline to $3.15 billion. Net income is estimated to be between $175 million and $180 million, swinging from a net loss in the previous fiscal year.
“We are developing and are on track with four new growth initiatives to drive our business including the expansion of our owned Donna Karan brand, a long-term license for Nautica in North America, a master global licensing agreement for Halston, and a multi-year outerwear license for Champion,” said Goldfarb.
“The strength of our balance sheet affords us tremendous financial flexibility to invest in our business and consider additional opportunities.”
Meanwhile, the company has appointed Dana Perlman to the newly created role of chief growth and operations officer, effective January 8.
Perlman is a director of O’Reilly Automotive and has held leadership positions at PVH Corp, Barclays Investment Bank, and Lehman Brothers.
