G-III Apparel Q1 net sales up 28 percent, swings to profit
US fashion group G-III Apparel has reported a 28.3 percent increase in net sales for the first quarter of the year, beating analysts’ estimates as it swung to a profit.
For the three months to April 30, net sales increased to 519.9 million dollars from 405.1 million dollars a year earlier when the pandemic was in full swing and when a large portion of the company’s stores was closed.
The Nasdaq-listed company, which owns brands DKNY and Donna Karan, said net income was 26.3 million dollars in the quarter, compared to a net loss of 39.3 million dollars in the prior-year period.
G-III completed a restructuring of its retail operations segment during the quarter, which included closures of its Wilsons Leather and G.H. Bass stores. Included in the company’s first-quarter results were net losses from the Wilsons Leather and G.H. Bass store operations of 15 million dollars.
The company’s chair and CEO Morris Goldfarb said she was pleased with the business’ performance in the first quarter and said sales for broader lifestyle apparel such as sportswear, wear-to-work attire and dresses were continuing to improve as markets reopened.
She also said the company’s overall business in North America “is getting stronger”.
G-III Apparel upbeat on year
“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,” she said in a release.
“We believe we are well-positioned to capitalize on consumer demand as the year progresses and are optimistic about this fiscal year.”
Looking ahead, G-III Apparel said it expects second-quarter sales of approximately 460 million dollars, which compares to 297.2 million dollars in the same period last year.
For the 2020 fiscal year, the company expects net sales of approximately 2.57 billion dollars, compared to 2.06 billion dollars last year, while it expects net income of between 125 million dollars and 135 million dollars, compared to net income of 23.5 million dollars last year.
“As the world reopens, we are in a strong financial position, which we believe will allow us to fund our growth domestically and internationally and enable us to take advantage of opportunities that arise,” Goldfarb said.