G-III Apparel Group, Ltd. Reports Fourth Quarter and Full-Year Fiscal 2024 Results; Provides Fiscal 2025 Outlook

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Insights

The fiscal year 2024 results for G-III Apparel Group indicate a mixed financial performance, with a notable decline in net sales from $3.23 billion to $3.10 billion. However, this is juxtaposed against a significant recovery in profitability, transitioning from a net loss of $(2.79) per share to a net income of $3.75 per diluted share. The company's achievement of a non-GAAP net income per diluted share of $4.04, surpassing the guidance and the reduction in inventories by 27% are particularly noteworthy. These figures suggest a strategic shift towards operational efficiency and a stronger focus on inventory management.

Despite the decrease in net sales, the improvement in net income highlights successful cost controls and perhaps a favorable shift in sales mix towards higher-margin owned brands, which now represent 47% of net sales. The liquidity position, with a net cash position of $90.0 million and over $1.00 billion in liquidity, offers G-III Apparel Group considerable financial flexibility. This robust liquidity profile is critical for the company's ability to invest in growth initiatives and navigate market uncertainties.

Investors may view the financial results with cautious optimism, as the company is showing signs of a strategic pivot that could lead to sustainable growth, especially with the development and market introduction of new brands. However, the reduction in net sales warrants a closer look to understand the underlying drivers, including market demand, competitive pressures and potential shifts in consumer behavior.

The apparel industry has been experiencing shifts in consumer preferences, with a growing emphasis on brand identity and digital channels. G-III's increased penetration of owned brands is a strategic response to these market dynamics, as owned brands typically offer higher margins and greater control over distribution and marketing. The company's emphasis on brands like DKNY, Karl Lagerfeld and Vilebrequin, as well as the introduction of new offerings such as Nautica, Halston and Champion outerwear, aligns with the need to diversify and strengthen its brand portfolio.

However, the decline in net sales raises questions about the broader market context, including the company's competitive positioning and the impact of macroeconomic factors. With the apparel industry being highly competitive and subject to fast-changing fashion trends, G-III's ability to maintain relevance and appeal to consumers is crucial. The successful launch of new brands and the development of a diverse business model suggest a proactive approach to these challenges.

From a market perspective, stakeholders will be interested in the company's forward-looking strategies, including how it plans to leverage its strong liquidity position to further enhance brand equity, expand its digital footprint and capitalize on emerging market opportunities. The decrease in inventories suggests a shift towards a leaner operation, which could lead to improved cash flow and reduced risk of overstocking.

The financial performance of G-III Apparel Group must be contextualized within the broader economic environment. The company's ability to generate a net income per diluted share of $3.75, despite a decrease in net sales, indicates a resilient business model in the face of potential economic headwinds. With the economic landscape being influenced by factors such as inflation, consumer spending power and global trade dynamics, G-III's performance suggests an adaptive strategy that has managed to mitigate adverse impacts.

The shift towards a higher margin, owned brands portfolio could be a strategic hedge against economic fluctuations, as it may provide more stable revenue streams and better control over pricing. The reduction in inventories is also a prudent measure in an uncertain economic climate, as it reduces the risk associated with holding large volumes of stock that may not align with shifting consumer demands.

Furthermore, the company's strong liquidity position is a significant advantage in times of economic uncertainty, providing the means to navigate short-term disruptions and invest in long-term growth initiatives. However, it is important to monitor how the company allocates its capital, as overextension into new brands and markets can introduce new risks. Stakeholders will be interested in the company's capital allocation strategies, particularly in how it balances investments in growth with maintaining financial stability.

03/14/2024 - 07:00 AM

Net Sales of $3.10 Billion for Fiscal Year 2024 Compared to $3.23 Billion Last Year
Net Income Per Diluted Share of $3.75 for Fiscal Year 2024 Compared to a Net Loss of $(2.79) Per Share Last Year and Meets Guidance
Non-GAAP Net Income Per Diluted Share of $4.04 for Fiscal Year 2024 Compared to $2.85 Last Year and Exceeds Guidance
Ended Fiscal Year 2024 in a Net Cash Position of $90.0 Million With Over $1.00 Billion in Liquidity
Inventories Decreased 27% Compared to Last Year

NEW YORK--(BUSINESS WIRE)-- G-III Apparel Group, Ltd. (NasdaqGS: GIII) today reported results for the fourth quarter and full fiscal year ended January 31, 2024.

Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “This year was important for G-III as we began to execute on our path for the future, while delivering strong profitability. We delivered strong growth with DKNY, Karl Lagerfeld and Vilebrequin, increasing penetration of our higher margin, owned brands to 47% of fiscal 2024 net sales, up from 40% last year. Our diverse business model and disciplined operating approach has allowed us to further strengthen our credit profile as we ended the year in a net cash position, with over a billion dollars in liquidity. We began to implement our new growth initiatives with the successful launch of our Donna Karan brand and the development of three new additions to our portfolio, Nautica, Halston and Champion outerwear, all of which we have recently brought to market with first deliveries in fiscal 2025.”

Mr. Goldfarb concluded, “Looking ahead, we are optimistic about fiscal year 2025, with the launches of our new initiatives and the continued organic growth of our owned brands. As we build new brands, we will invest in high-impact global marketing to support our brands and their launches, as well as in talent and technology to enhance our operational capabilities. We have the financial flexibility to invest in our growth, and in our new initiatives as well as to explore strategic opportunities. I am confident in our path forward and in our ability to deliver long-term growth.”

Results of Operations

Fourth Quarter Fiscal 2024

Net sales for the fourth quarter ended January 31, 2024 decreased 10.5% to $764.8 million from $854.4 million in the prior year’s quarter. Net income for the fourth quarter was $28.9 million, or $0.61 per diluted share, compared to a net loss of $(261.1) million, or $(5.54) per share, in the prior year’s quarter. Last year’s fourth quarter included a $291.5 million non-cash goodwill impairment charge, net of tax, or $6.19 per share.

Non-GAAP net income per diluted share was $0.76 for the fourth quarter compared to $0.41 in the same period last year. Non-GAAP net income per diluted share excludes (i) asset impairments of $6.5 million in the fourth quarter compared to $349.5 million in the prior year’s fourth quarter, (ii) expenses related to the Karl Lagerfeld transaction that include incentive compensation of $0.6 million in the fourth quarter and incentive compensation, professional fees and amortization of inventory adjustments of $0.3 million in the prior year’s fourth quarter, (iii) non-cash imputed interest expense of $0.2 million in the fourth quarter related to the note issued to seller (the “Seller Note”) as part of the consideration for the acquisition of Donna Karan International compared to $1.8 million in the prior year’s fourth quarter, (iv) one-time expenses, primarily related to our DKNY business in China, of $3.1 million in the fourth quarter, (v) the gain recorded from the reduction of the earnout liability related to our Sonia Rykiel acquisition of ($1.0) million in the fourth quarter, (vi) the adjustment to the investment gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities of $3.9 million in the prior year’s fourth quarter and (vii) bonus accrual expense reversed due to the goodwill impairment recognized of $(17.9) million in the prior year’s fourth quarter only. The aggregate effect of these exclusions was equal to $0.15 per diluted share this year’s fourth quarter and $5.95 per diluted share in the same period last year.

Fiscal 2024

Net sales for the fiscal year ended January 31, 2024 decreased 4.0% to $3.10 billion from $3.23 billion in the prior year. The Company reported net income for the fiscal year of $176.2 million, or $3.75 per diluted share, compared to a net loss of $(133.1) million, or $(2.79) per share, in the prior year. The prior year’s results include a $291.5 million non-cash goodwill impairment charge, net of tax, or $6.12 per share.

Non-GAAP net income per diluted share was $4.04 for the year compared to $2.85 in the prior year. Non-GAAP net income per diluted share excludes (i) asset impairments of $6.8 million this year compared to $349.7 million in the prior year, (ii) expenses related to the Karl Lagerfeld transaction that include incentive compensation of $6.1 million this year and incentive compensation, professional fees, amortization of inventory adjustments and foreign currency losses of $13.9 million in the prior year, (iii) non-cash imputed interest expense of $3.8 million this year related to the Seller Note compared to $6.9 million in the prior year, (iv) one-time expenses, primarily related to our DKNY business in China, of $3.1 million in the current year, (v) the gain recorded from the reduction of the earnout liability related to our Sonia Rykiel acquisition of $(1.0) million in the current year, (vi) the investment gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities of $27.1 million in the prior year and (vii) bonus accrual expense reversed due to the goodwill impairment recognized of $(17.9) million in the prior year only. The aggregate effect of these exclusions was $0.29 per diluted share this year and $5.64 per diluted share in the prior year.

Outlook

The Company today issued its outlook for the fiscal year ending January 31, 2025. This outlook anticipates approximately $60.0 million in incremental expenses, primarily associated with the launches of Donna Karan, Nautica and Halston. Approximately 65% of these expenses are related to marketing initiatives to support the Donna Karan and DKNY brands. The remaining costs are principally related to technology and talent to expand operational capabilities.

Fiscal 2025

For fiscal 2025, the Company expects net sales of approximately $3.20 billion and net income between $167.0 million and $172.0 million, or between $3.50 and $3.60 per diluted share. This compares to net sales of $3.10 billion and net income of $176.2 million, or $3.75 per diluted share, for fiscal 2024.

Non-GAAP net income for fiscal 2025 is expected to be between $167.0 million and $172.0 million, or between $3.50 and $3.60 per diluted share. This compares to non-GAAP net income of $189.8 million, or $4.04 per diluted share, for fiscal 2024.

Full-year adjusted EBITDA for fiscal 2025 is expected to be between $290.0 million and $295.0 million compared to adjusted EBITDA of $324.1 million in fiscal 2024.

First Quarter Fiscal 2025

For the first quarter of fiscal 2025, the Company expects net sales of approximately $615.0 million compared to $606.6 million in the same period last year. Net loss is expected to be in the range of $(5.0) million and break-even, or $(0.10) and $0.00 per share. This compares to net income of $3.2 million, or $0.07 per diluted share, in last year’s first quarter.

Non-GAAP net income for the first quarter of fiscal 2025 is expected to be between $(5.0) million and break-even, or between $(0.10) and $0.00 per share. This compares to non-GAAP net income of $6.0 million, or $0.13 per diluted share, for the first quarter of fiscal 2024.

Non-GAAP Financial Measures

Reconciliations of GAAP net income (loss) to non-GAAP net income (loss), GAAP net income (loss) per diluted share to non-GAAP net income per diluted share and GAAP net income (loss) to adjusted EBITDA are presented in tables accompanying the financial statements included in this release and provide useful information to evaluate the Company’s operational performance. A description of the amounts excluded on a non-GAAP basis are provided in conjunction with these tables. Non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA should be evaluated in light of the Company’s financial statements prepared in accordance with GAAP.

About G-III Apparel Group, Ltd.

G-III Apparel Group, Ltd., a global leader in fashion with expertise in design, sourcing and marketing, owns and licenses a portfolio of over 30 preeminent brands. The Company is differentiated across unique brand propositions, product categories and consumer touch points. G-III owns ten iconic brands including, DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin, and licenses over 20 brands, including Calvin Klein, Tommy Hilfiger, Nautica, Halston and National Sports leagues, among others.

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 reliance on licensed product, risks relating to G-III’s ability to increase revenues from sales of its other products, new acquired businesses or new license agreements as licenses for Calvin Klein and Tommy Hilfiger product expire on a staggered basis, reliance on foreign manufacturers, risks of doing business abroad, supply chain disruptions, risks related to acts of terrorism and the effects of war, 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, including inflation and higher interest rates, 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 (Nasdaq: GIII) CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)

	Three Months Ended January 31,				Year Ended January 31,
	2024		2023		2024		2023
	(Unaudited)				(Unaudited)

Net sales	$	764,782	$	854,428	$	3,098,242	$	3,226,728
Cost of goods sold		482,801		572,883		1,856,395		2,125,591
Gross profit		281,981		281,545		1,241,847		1,101,137

Selling, general and administrative expenses		220,747		216,800		924,223		833,151
Depreciation and amortization		8,393		7,741		27,523		27,762
Asset impairments		6,536		349,474		6,758		349,686
Operating profit (loss)		46,305		(292,470)		283,343		(109,462)

Other income (loss)		(1,185)		3,071		(3,149)		27,894
Interest and financing charges, net		(6,929)		(15,797)		(39,595)		(56,602)
Income (loss) before income taxes		38,191		(305,196)		240,599		(138,170)

Income tax expense (benefit)		10,208		(43,277)		65,859		(3,788)
Net income (loss)	$	27,983	$	(261,919)	$	174,740	$	(134,382)
Less: Loss attributable to noncontrolling interests		(871)		(802)		(1,428)		(1,321)
Net income (loss) attributable to G-III Apparel Group, Ltd.	$	28,854	$	(261,117)	$	176,168	$	(133,061)

Net income (loss) attributable to G-III Apparel Group, Ltd. per common share:
Basic	$	0.63	$	(5.54)	$	3.84	$	(2.79)
Diluted	$	0.61	$	(5.54)	$	3.75	$	(2.79)

Weighted average shares outstanding:
Basic		45,727		47,120		45,859		47,653
Diluted		47,021		47,120		47,000		47,653



Selected Balance Sheet Data (in thousands):	At January 31,
	2024		2023
	(Unaudited)

Cash and cash equivalents	$	507,829	$	191,652
Working capital		1,166,690		1,073,431
Inventories		520,426		709,345
Total assets		2,681,164		2,712,405
Long-term debt		417,833		619,358
Operating lease liabilities		234,834		257,891
Total stockholders' equity		1,550,260		1,385,448

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (In thousands)

	Three Months Ended January 31,				Year Ended January 31,
	2024		2023		2024		2023
	(Unaudited)

GAAP net income (loss) attributable to G-III Apparel Group, Ltd.	$	28,854	$	(261,117)	$	176,168	$	(133,061)

Excluded from non-GAAP:
Asset impairments		6,536		349,474		6,758		349,686
Expenses related to Karl Lagerfeld acquisition		598		254		6,115		13,895
Non-cash imputed interest		213		1,787		3,798		6,947
One-time expenses primarily related to our DKNY business in China		3,138		—		3,138		—
Change in fair value of earnout liability		(1,041)		—		(1,041)		—
Karl Lagerfeld investment gain		—		3,854		—		(27,071)
Bonus accrual expense reversed due to goodwill impairment charge		—		(17,900)		—		(17,900)
Income tax impact of non-GAAP adjustments		(2,524)		(56,554)		(5,137)		(53,737)

Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined	$	35,774	$	19,798	$	189,799	$	138,759

Non-GAAP net income (loss) is a “non-GAAP financial measure” that excludes (i) in both fiscal 2023 and 2024, asset impairments, including the fiscal 2023 goodwill impairment of $347.2 million, (ii) in both fiscal 2023 and 2024, expenses related to the Karl Lagerfeld transaction that include incentive compensation and, in fiscal 2023, professional fees, amortization of inventory valuation adjustments and foreign currency losses, (iii) in both fiscal 2023 and 2024, non-cash imputed interest expense, (iv) in fiscal 2024, one-time expenses, primarily related to our DKNY business in China, (v) in fiscal 2024, the gain recorded from the reduction of the earnout liability related to our acquisition of Sonia Rykiel in fiscal 2022, (vi) in fiscal 2023, the gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities and (vii) in fiscal 2023, bonus accrual expense reversed due to the goodwill impairment recognized in that fiscal year. For fiscal 2024, the income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. For fiscal 2023, the income tax impact of non-GAAP adjustments is calculated using an effective tax rate derived from our results of operations excluding the non-GAAP adjustments. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME (LOSS) PER SHARE TO NON-GAAP NET INCOME PER SHARE

	Three Months Ended January 31,				Year Ended January 31,
	2024		2023		2024		2023
	(Unaudited)

GAAP diluted net income (loss) attributable to G-III Apparel Group, Ltd. per common share	$	0.61	$	(5.54)	$	3.75	$	(2.79)
Adjustment from GAAP diluted shares to Non-GAAP diluted shares ⁽¹⁾		—		0.12		—		0.06

Excluded from non-GAAP:
Asset impairments		0.14		7.26		0.14		7.18
Expenses related to Karl Lagerfeld acquisition		0.01		0.01		0.13		0.29
Non-cash imputed interest		—		0.04		0.08		0.14
One-time expenses primarily related to our DKNY business in China		0.07		—		0.07		—
Change in fair value of earnout liability		(0.02)		—		(0.02)		—
Karl Lagerfeld investment gain		—		0.08		—		(0.56)
Bonus accrual expense reversed due to goodwill impairment charge		—		(0.37)		—		(0.37)
Income tax impact of non-GAAP adjustments		(0.05)		(1.19)		(0.11)		(1.10)

Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined	$	0.76	$	0.41	$	4.04	$	2.85

Non-GAAP diluted shares ⁽¹⁾		47,021		48,155		47,000		48,694

(1)

Represents adjustment for shares used to calculate diluted earnings per share. Due to our recording a GAAP net loss for the fourth quarter and fiscal 2023, diluted shares are the same as basic shares for GAAP. When applying non-GAAP exclusions, our results move from a net loss to a net income position.

Non-GAAP diluted net income (loss) per common share is a “non-GAAP financial measure” that excludes (i) in both fiscal 2023 and 2024, asset impairments, including the fiscal 2023 goodwill impairment of $347.2 million, (ii) in both fiscal 2023 and 2024, expenses related to the Karl Lagerfeld transaction that include incentive compensation and, in fiscal 2023, professional fees, amortization of inventory valuation adjustments and foreign currency losses, (iii) in both fiscal 2023 and 2024, non-cash imputed interest expense, (iv) in fiscal 2024, one-time expenses, primarily related to our DKNY business in China, (v) in fiscal 2024, the gain recorded from the reduction of the earnout liability related to our acquisition of Sonia Rykiel in fiscal 2022, (vi) in fiscal 2023, the gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities and (vii) in fiscal 2023, bonus accrual expense reversed due to the goodwill impairment recognized in that fiscal year. For fiscal 2024, the income tax impact of non-GAAP adjustments is calculated using the effective tax rate for the period. For fiscal 2023, the income tax impact of non-GAAP adjustments is calculated using an effective tax rate derived from our results of operations excluding the non-GAAP adjustments. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF FORECASTED AND ACTUAL NET INCOME (LOSS) TO FORECASTED AND ACTUAL ADJUSTED EBITDA (In thousands)

	Forecasted
	Year Ended		Actual Year Ended		Actual Year Ended
	January 31, 2025		January 31, 2024		January 31, 2023
	(Unaudited)
Net income (loss) attributable to G-III Apparel Group, Ltd.	$	167,000 - 172,000	$	176,168	$	(133,061)

Asset impairments		—		6,758		349,686
Expenses related to Karl Lagerfeld acquisition		—		6,115		13,895
One-time expenses primarily related to our DKNY business in China		—		3,138		—
Change in fair value of earnout liability		—		(1,041)		—
Karl Lagerfeld investment gain		—		—		(27,071)
Bonus accrual expense reversed due to goodwill impairment charge		—		—		(17,900)
Depreciation and amortization		32,330		27,523		27,762
Interest and financing charges, net		22,984		39,595		56,602
Income tax expense		67,686		65,859		(3,788)

Adjusted EBITDA, as defined	$	290,000 - 295,000	$	324,115	$	266,125

Adjusted EBITDA is a “non-GAAP financial measure” which represents earnings before depreciation and amortization, interest and financing charges, net and income tax expense and excludes (i) in both fiscal 2023 and 2024, asset impairments, including the fiscal 2023 goodwill impairment of $347.2 million, (ii) in both fiscal 2023 and 2024, expenses related to the Karl Lagerfeld transaction that include incentive compensation and, in fiscal 2023, professional fees, amortization of inventory valuation adjustments and foreign currency losses, (iii) in fiscal 2024, one-time expenses, primarily related to our DKNY business in China, (iv) in fiscal 2024, the gain recorded from the reduction of the earnout liability related to our acquisition of Sonia Rykiel in fiscal 2022, (v) in fiscal 2023, the gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities and (vi) in fiscal 2023, bonus accrual expense reversed due to the goodwill impairment recognized in that fiscal year. Adjusted EBITDA is being presented as a supplemental disclosure because management believes that it is a common measure of operating performance in the apparel industry. Adjusted EBITDA should not be construed as an alternative to net income (loss), as an indicator of the Company’s operating performance, or as an alternative to cash flows from operating activities as a measure of the Company’s liquidity, as determined in accordance with GAAP.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME (LOSS) TO FORECASTED AND ACTUAL NON-GAAP NET INCOME (LOSS) (In thousands)

	Forecasted Three		Actual Three		Forecasted Twelve		Actual Twelve
	Months Ended		Months Ended		Months Ended		Months Ended
	April 30, 2024		April 30, 2023		January 31, 2025		January 31, 2024
	(Unaudited)

GAAP net income (loss) attributable to G-III Apparel Group, Ltd.	$	(5,000) - 0	$	3,236	$	167,000 - 172,000	$	176,168

Excluded from non-GAAP:
Asset impairments		—		—		—		6,758
Expenses related to Karl Lagerfeld acquisition		—		1,821		—		6,115
Non-cash imputed interest		—		1,817		—		3,798
One-time expenses primarily related to our DKNY business in China		—		—		—		3,138
Change in fair value of earnout liability		—		—		—		(1,041)
Income tax impact of non-GAAP adjustments		—		(841)		—		(5,137)

Non-GAAP net income (loss) attributable to G-III Apparel Group, Ltd., as defined	$	(5,000) - 0	$	6,033	$	167,000 - 172,000	$	189,799

Non-GAAP diluted net income (loss) per common share is a “non-GAAP financial measure” that excludes (i) asset impairments, (ii) expenses related to the Karl Lagerfeld transaction that include incentive compensation, (iii) non-cash imputed interest expense, (iv) one-time expenses, primarily related to our DKNY business in China and (v) the gain recorded from the reduction of the earnout liability related to our acquisition of Sonia Rykiel in fiscal 2022. The income tax impact of non-GAAP adjustments is calculated using an effective tax for the period. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding items that are not indicative of our core business operating results. Management uses these non-GAAP financial measures to assess our performance on a comparative basis and believes that they are also useful to investors to enable them to assess our performance on a comparative basis across historical periods and facilitate comparisons of our operating results to those of our competitors. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF FORECASTED AND ACTUAL GAAP NET INCOME (LOSS) PER SHARE TO FORECASTED AND ACTUAL NON-GAAP NET INCOME (LOSS) PER SHARE

	Forecasted Three		Actual Three		Forecasted Twelve		Actual Twelve
	Months Ended		Months Ended		Months Ended		Months Ended
	April 30, 2024		April 30, 2023		January 31, 2025		January 31, 2024
	(Unaudited)

GAAP diluted net income (loss) attributable to G-III Apparel Group, Ltd. per common share	$	(0.10) - 0.00	$	0.07	$	3.50 - 3.60	$	3.75

Excluded from non-GAAP:
Asset impairments		—		—		—		0.14
Expenses related to Karl Lagerfeld acquisition		—		0.04		—		0.13
Non-cash imputed interest		—		0.04		—		0.08
One-time expenses primarily related to our DKNY business in China		—		—		—		0.07
Change in fair value of earnout liability		—		—		—		(0.02)
Income tax impact of non-GAAP adjustments		—		(0.02)		—		(0.11)

Non-GAAP diluted net income (loss) attributable to G-III Apparel Group, Ltd. per common share, as defined	$	(0.10) - 0.00	$	0.13	$	3.50 - 3.60	$	4.04

View source version on businesswire.com: https://www.businesswire.com/news/home/20240314754075/en/

G-III Apparel Group, Ltd.

Company:

Priya Trivedi

SVP of Investor Relations and Treasurer

(646) 473-5228

Investor Relations:

Tom Filandro

ICR, Inc.

(646) 277-1235

Company Media:

Andrew Blecher

andrew.blecher@g-iii.com

Source: G-III Apparel Group, Ltd.

FAQ

What were G-III Apparel Group, Ltd.'s net sales for fiscal year 2024?

G-III Apparel Group, Ltd. reported net sales of $3.10 billion for fiscal year 2024.

How did G-III Apparel Group, Ltd.'s net income per diluted share change from last year to fiscal year 2024?

G-III Apparel Group, Ltd. achieved a net income per diluted share of $3.75 for fiscal year 2024, a significant improvement from a net loss of $(2.79) per share last year.

What was G-III Apparel Group, Ltd.'s non-GAAP net income per diluted share for fiscal year 2024?

G-III Apparel Group, Ltd.'s non-GAAP net income per diluted share was $4.04 for fiscal year 2024, exceeding last year's $2.85.

How did G-III Apparel Group, Ltd. end fiscal year 2024 in terms of cash position and liquidity?

G-III Apparel Group, Ltd. ended fiscal year 2024 in a net cash position of $90.0 million with over $1.00 billion in liquidity.

What new growth initiatives did G-III Apparel Group, Ltd. implement?

G-III Apparel Group, Ltd. successfully launched its Donna Karan brand and added Nautica, Halston, and Champion outerwear to its portfolio.

G-III Apparel Group, Ltd. Reports Fourth Quarter and Full-Year Fiscal 2024 Results; Provides Fiscal 2025 Outlook

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FAQ

What were G-III Apparel Group, Ltd.'s net sales for fiscal year 2024?

How did G-III Apparel Group, Ltd.'s net income per diluted share change from last year to fiscal year 2024?

What was G-III Apparel Group, Ltd.'s non-GAAP net income per diluted share for fiscal year 2024?

How did G-III Apparel Group, Ltd. end fiscal year 2024 in terms of cash position and liquidity?

What new growth initiatives did G-III Apparel Group, Ltd. implement?

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G-III Apparel Group, Ltd. Reports Fourth Quarter and Full-Year Fiscal 2024 Results; Provides Fiscal 2025 Outlook

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FAQ

What were G-III Apparel Group, Ltd.'s net sales for fiscal year 2024?

How did G-III Apparel Group, Ltd.'s net income per diluted share change from last year to fiscal year 2024?

What was G-III Apparel Group, Ltd.'s non-GAAP net income per diluted share for fiscal year 2024?

How did G-III Apparel Group, Ltd. end fiscal year 2024 in terms of cash position and liquidity?

What new growth initiatives did G-III Apparel Group, Ltd. implement?

NASDAQ:GIII

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