G-III Apparel Group has upped its full-year revenue and profit outlook after exceeding both its top and bottom line guidance in the first quarter.
Net sales for the first quarter ended April 30 dropped 11.9 percent to 606.6 million dollars, while net income narrowed to 3.2 million dollars from 30.6 million dollars.
The group, whose portfolio includes brands Karl Lagerfeld, DKNY, and Donna Karan, had expected sales of around 560 million dollars and a net loss of between 5 million dollars and 10 million dollars.
Commenting on the Q1 results in a statement, G-III chair and CEO Morris Goldfarb said: “We made progress rightsizing our inventory position, which sequentially decreased by 80 million dollars, while our gross margins were significantly better than last year’s first quarter.”
Goldfarb also noted the company is “off to a good start” in the new fiscal year. The group now expects FY24 net sales of approximately 3.29 billion dollars, and net income of between 125 million dollars and 130 million dollars.
The Nasdaq-listed company previously expected net sales for the current year to remain flat, and for net income of between 117 million dollars and 122 million dollars.
New licensing deal
Goldfarb also announced Tuesday a new 25-year master licensing agreement between G-III and American heritage fashion brand, Halston.
The deal means G-III will design and produce all categories of product for Halston, and will additionally have the option to buy the brand at the end of the licensing term.
Robert W. D’Loren, the chair and CEO of Halston’s parent company, Xcel Brands, said: “We’re extremely pleased to partner with G-III Apparel Group on this long-term master license agreement.
“G-III’s design and production expertise, retail distribution, and sourcing capabilities make them an outstanding partner to fulfill our vision for the Halston brand. The company has a strong track record of building substantial brands and we see significant opportunity for Halston as part of G-III’s portfolio.”