G-III Apparel Group, Ltd. Announces Fourth Quarter and Full-Year Fiscal 2021 Results
G-III Apparel Group reported a significant decline in financial performance for FY 2021, with net sales dropping 35% to $2.06 billion and net income of $23.5 million ($0.48 per share) compared to $143.8 million ($2.94 per share) the previous year. The fourth quarter saw a 30.3% decrease in sales to $526.2 million and net income of $14.6 million ($0.30 per share). The company continues to restructure, closing Wilsons Leather and G.H. Bass stores, leading to hefty losses. Moving into FY 2022, guidance projects first-quarter sales of around $460 million, a recovery from last year's $405.1 million.
- Expectations of net sales at approximately $460 million for Q1 FY 2022, up from $405.1 million last year.
- Guidance for Q1 FY 2022 indicates potential GAAP earnings per share between $0.05 and $0.15, improving from last year's loss.
- Net sales decreased 35% to $2.06 billion in FY 2021 from $3.16 billion in the prior year.
- GAAP net income fell to $23.5 million ($0.48 per share), compared to $143.8 million ($2.94 per share) in FY 2020.
- Losses from closed Wilsons Leather and G.H. Bass stores reached $55.7 million ($1.14 per share) for FY 2021.
G-III Apparel Group, Ltd. (NasdaqGS: GIII) today announced operating results for the fourth quarter and full fiscal 2021 year ended January 31, 2021.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “The resiliency and flexibility demonstrated by our high performing teams has been nothing short of amazing. Our entrepreneurial culture, with a merchant led focus, proved to be invaluable as we responded to the casual trend by designing the right merchandise for our retail partners. We further elevated our position as a key supplier of choice for a broad range of apparel and accessories. We ended fiscal year 2021 with continued improvement in our wholesale operations and completed the restructuring of our retail operations.”
Mr. Goldfarb concluded, “We enter fiscal year 2022 in a good inventory position, which is weighted toward casual product that remains in high demand. As the year progresses, we believe there will be an increasing desire for dressier apparel and accessories. We are working closely with our retail and vendor partners to be in a position to bring these products to market in a timely manner. Our strong financial position and liquidity enables us to continue to fund our operations, as well as consider acquisitions.”
Net sales for the fiscal year ended January 31, 2021 decreased
The Company has completed the restructuring of its retail operations segment and has permanently closed the Wilsons Leather and G.H. Bass stores. Included in the Company’s results for the fiscal year ended January 31, 2021, are net losses from the Wilsons Leather and G.H. Bass store operations of
For the fourth quarter ended January 31, 2021, net sales decreased
Included in the Company’s fourth quarter results are net losses from the Wilsons Leather and G.H. Bass store operations of
Outlook
As there continues to be uncertainty associated with the impact of the COVID-19 pandemic on our results, the Company is only providing guidance for the first quarter of fiscal year 2022, ending on April 30, 2021.
For the first quarter of fiscal year 2022, we expect net sales of approximately
About G-III Apparel Group, Ltd.
G-III designs, sources and markets apparel and accessories under owned, licensed and private label brands. G-III’s substantial portfolio of more than 30 licensed and proprietary brands is anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. G-III’s owned brands include DKNY, Donna Karan, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc and Marc New York. G-III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and Dockers brands. Through its team sports business, G-III has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and over 150 U.S. colleges and universities. G-III also distributes directly to consumers through its DKNY, Karl Lagerfeld Paris and Vilebrequin stores and its digital channels for the DKNY, Donna Karan, Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass brands.
Statements concerning G-III's business outlook or future economic performance, anticipated revenues, expenses or other financial items; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are "forward-looking statements" as that term is defined under the Federal Securities laws. Forward-looking statements are subject to risks, uncertainties and factors which include, but are not limited to, risks related to the COVID-19 outbreak, reliance on licensed product, reliance on foreign manufacturers, risks of doing business abroad, the current economic and credit environment, risks related to our indebtedness, the nature of the apparel industry, including changing customer demand and tastes, customer concentration, seasonality, risks of operating a retail business, risks related to G-III’s ability to reduce the losses incurred in its retail operations, customer acceptance of new products, the impact of competitive products and pricing, dependence on existing management, possible disruption from acquisitions, the impact on G-III’s business of the imposition of tariffs by the United States government and business and general economic conditions, as well as other risks detailed in G-III's filings with the Securities and Exchange Commission. G-III assumes no obligation to update the information in this release.
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
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Three Months Ended
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Year Ended
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2021 |
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2020 |
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2021 |
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2020 |
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(Unaudited) |
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(Unaudited) |
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Net sales |
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$ |
526,242 |
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$ |
754,617 |
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$ |
2,055,146 |
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$ |
3,160,464 |
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Cost of goods sold |
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338,649 |
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503,529 |
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1,310,704 |
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2,042,524 |
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Gross profit |
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187,593 |
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251,088 |
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744,442 |
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1,117,940 |
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Selling, general and administrative expenses |
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150,755 |
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187,293 |
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605,102 |
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832,180 |
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Depreciation and amortization |
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8,880 |
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9,772 |
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38,625 |
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38,735 |
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Asset impairments, net of lease terminations |
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501 |
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21,717 |
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17,873 |
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19,371 |
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Operating profit |
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27,457 |
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32,306 |
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82,842 |
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227,654 |
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Other income (loss) |
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3,126 |
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(427 |
) |
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3,238 |
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(1,149 |
) |
Interest and financing charges, net |
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(12,117 |
) |
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(10,784 |
) |
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(50,354 |
) |
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(44,407 |
) |
Income before income taxes |
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18,466 |
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21,095 |
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35,726 |
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182,098 |
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Income tax expense (benefit) |
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3,846 |
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(4,193 |
) |
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12,203 |
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38,261 |
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Net income |
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$ |
14,620 |
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$ |
25,288 |
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$ |
23,523 |
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$ |
143,837 |
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Less: Loss attributable to noncontrolling interests |
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(22 |
) |
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— |
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(22 |
) |
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— |
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Net income attributable to G-III Apparel Group, Ltd. |
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$ |
14,642 |
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$ |
25,288 |
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$ |
23,545 |
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$ |
143,837 |
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Net income attributable to G-III Apparel Group, Ltd. per common share: |
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Basic |
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$ |
0.30 |
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$ |
0.53 |
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$ |
0.49 |
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$ |
2.98 |
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Diluted |
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$ |
0.30 |
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$ |
0.52 |
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$ |
0.48 |
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$ |
2.94 |
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Weighted average shares outstanding: |
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Basic |
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48,367 |
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47,841 |
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48,242 |
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48,209 |
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Diluted |
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49,299 |
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48,484 |
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48,781 |
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48,895 |
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Selected Balance Sheet Data (in thousands): |
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At January 31, |
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2021 |
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2020 |
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(Unaudited) |
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Cash and cash equivalents |
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$ |
351,934 |
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$ |
197,372 |
Working capital |
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925,449 |
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754,728 |
Inventories |
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416,503 |
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551,918 |
Total assets |
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2,426,394 |
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2,565,137 |
Long-term debt |
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512,352 |
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397,467 |
Operating lease liabilities |
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205,228 |
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312,206 |
Total G-III Apparel Group, Ltd. Stockholders' Equity |
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1,336,241 |
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1,290,672 |
SELECT STATEMENT OF OPERATIONS DATA OF WILSONS LEATHER AND G.H. BASS STORES
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Three Months Ended
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Twelve Months Ended
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2021 |
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2020 |
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2021 |
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2020 |
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(Unaudited) |
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Net sales |
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$ |
14,713 |
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$ |
85,478 |
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$ |
91,848 |
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$ |
251,511 |
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Operating loss (1) |
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(10,881 |
) |
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(17,459 |
) |
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(84,654 |
) |
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(41,896 |
) |
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Operating loss before income taxes |
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(10,881 |
) |
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(17,459 |
) |
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(84,654 |
) |
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(41,896 |
) |
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Operating loss, net of taxes |
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$ |
(8,615 |
) |
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$ |
(15,903 |
) |
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$ |
(55,739 |
) |
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$ |
(31,696 |
) |
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Operating loss per common share: |
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Basic |
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$ |
(0.18 |
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$ |
(0.33 |
) |
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$ |
(1.16 |
) |
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$ |
(0.66 |
) |
Diluted |
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$ |
(0.17 |
) |
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$ |
(0.33 |
) |
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$ |
(1.14 |
) |
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$ |
(0.65 |
) |
The table above reflects the four wall operations of Wilsons Leather and G.H. Bass stores, which are included in the consolidated operating results of the Company. As part of our retail restructuring, we closed all of these stores. The results for this portion of our retail operations segment include impairment charges, but do not include any allocated corporate overhead charges, shared administrative expenses or shared distribution center expenses. Corporate overhead charges, shared administrative expenses and shared distribution center expenses have been excluded as these expenses will continue to be incurred by the Company notwithstanding the restructuring of its retail operations segment. The Company continues to evaluate to what extent these expenses might be able to be reduced upon the completion of the restructuring. No interest expense has been allocated in calculating these operating results. The tax rate used assumes the same overall effective rate that is reflected in the Company’s consolidated financial statements for fiscal 2021. For fiscal 2020, the tax rate used excludes certain adjustments related to foreign tax rate changes in fiscal 2020. The table above also reflects the results of operations of the Company’s four Calvin Klein Performance stores that were closed as part of the retail restructuring. The operating results of the four Calvin Klein Performance stores are also included in the consolidated operating results of the Company.
(1) |
Includes |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210318005191/en/
FAQ
What were G-III Apparel Group's net sales for FY 2021?
What is the projected net income for G-III Apparel Group in Q1 FY 2022?
How did G-III Apparel Group's fourth quarter performance compare to the previous year?
What losses did G-III incur from its closed stores?