G-III Apparel Group, Ltd. Reports Second Quarter Fiscal 2025 Results Above Guidance; Updates Fiscal 2025 Outlook
G-III Apparel Group, (GIII) reported strong Q2 fiscal 2025 results, with net sales of $644.8 million, slightly down from $659.8 million last year. The company exceeded guidance with non-GAAP net income per diluted share of $0.52. DKNY and Karl Lagerfeld brands collectively grew double-digits, and the Donna Karan relaunch was successful. G-III announced a new global apparel license for Converse, expanding its active lifestyle category. The company raised its fiscal 2025 outlook, expecting net sales to increase by 3% to $3.20 billion and non-GAAP diluted EPS between $3.95 and $4.05. G-III also repaid $400 million in senior secured notes and repurchased 1.2 million shares for $31.6 million.
G-III Apparel Group, (GIII) ha riportato risultati solidi per il secondo trimestre del 2025 fiscale, con vendite nette di 644,8 milioni di dollari, in leggero calo rispetto ai 659,8 milioni dell’anno precedente. L'azienda ha superato le previsioni con un utile netto non-GAAP per azione diluita di 0,52 dollari. I marchi DKNY e Karl Lagerfeld sono cresciuti complessivamente a doppia cifra, e il rilancio di Donna Karan ha avuto successo. G-III ha annunciato una nuova licenza globale di abbigliamento per Converse, espandendo la sua categoria di stile di vita attivo. L'azienda ha alzato le prospettive per il 2025 fiscale, prevedendo un aumento delle vendite nette del 3% a 3,20 miliardi di dollari e un utile per azione diluito non-GAAP compreso tra 3,95 e 4,05 dollari. G-III ha anche ripagato 400 milioni di dollari in note garantite senior e riacquistato 1,2 milioni di azioni per 31,6 milioni di dollari.
G-III Apparel Group, (GIII) reportó resultados sólidos para el segundo trimestre del año fiscal 2025, con ventas netas de 644.8 millones de dólares, ligeramente por debajo de los 659.8 millones del año pasado. La compañía superó las proyecciones con un ingreso neto no-GAAP por acción diluida de 0.52 dólares. Las marcas DKNY y Karl Lagerfeld crecieron colectivamente en dos dígitos, y el relanzamiento de Donna Karan fue exitoso. G-III anunció una nueva licencia global de ropa para Converse, ampliando su categoría de estilo de vida activo. La empresa incrementó sus perspectivas para el año fiscal 2025, esperando que las ventas netas aumenten un 3% a 3.20 mil millones de dólares y que el EPS diluido no-GAAP se sitúe entre 3.95 y 4.05 dólares. G-III también pagó 400 millones de dólares en notas aseguradas senior y repurgó 1.2 millones de acciones por 31.6 millones de dólares.
G-III Apparel Group, (GIII)는 2025 회계연도 2분기 실적이 강력하다고 보고했으며, 순매출은 6억 4천 4백 80만 달러로, 작년의 6억 5천 9백 80만 달러에서 소폭 감소했습니다. 이 회사는 가이던스를 초과 달성했다고 하며, 희석 주당 비-GAAP 순이익은 0.52달러입니다. DKNY와 Karl Lagerfeld 브랜드는 합산으로 두 자릿수 성장률을 기록했으며, Donna Karan의 재출시는 성공적이었습니다. G-III는 Converse의 새로운 글로벌 의류 라이센스를 발표했다며, 활성 라이프스타일 카테고리를 확장하고 있습니다. 이 회사는 2025 회계연도 전망을 상향 조정했다고 하며, 순매출이 3% 증가하여 32억 달러에 이를 것으로 예상하고, 비-GAAP 희석 EPS는 3.95에서 4.05달러 사이가 될 것으로 전망하고 있습니다. G-III는 또한 4억 달러의 선순위 보장 노트를 상환했으며 120만 주를 3160만 달러에 재매입했다고 전했습니다.
G-III Apparel Group, (GIII) a rapporté de solides résultats pour le deuxième trimestre de l'exercice 2025, avec des ventes nettes de 644,8 millions de dollars, légèrement en baisse par rapport à 659,8 millions de dollars l'année dernière. La société a dépassé les prévisions avec un bénéfice net par action diluée non-GAAP de 0,52 dollar. Les marques DKNY et Karl Lagerfeld ont connu une croissance à deux chiffres, et le relancement de Donna Karan a été un succès. G-III a annoncé une nouvelle licence mondiale de vêtements pour Converse, élargissant sa catégorie de style de vie actif. La société a rehaussé ses perspectives pour l'exercice 2025, s'attendant à ce que les ventes nettes augmentent de 3 % pour atteindre 3,20 milliards de dollars, et un bénéfice net par action diluée non-GAAP compris entre 3,95 et 4,05 dollars. G-III a également remboursé 400 millions de dollars en obligations sécurisées senior et a racheté 1,2 million d'actions pour 31,6 millions de dollars.
G-III Apparel Group, (GIII) berichtete von starken Ergebnissen im zweiten Quartal des Geschäftsjahres 2025, mit Nettoumsätzen von 644,8 Millionen Dollar, was einen leichten Rückgang gegenüber 659,8 Millionen Dollar im Vorjahr darstellt. Das Unternehmen übertraf die Prognosen mit einem non-GAAP Nettoergebnis pro verwässerter Aktie von 0,52 Dollar. Die Marken DKNY und Karl Lagerfeld verzeichneten gemeinsam ein zweistelliges Wachstum, und das Comeback von Donna Karan war erfolgreich. G-III kündigte eine neue globale Bekleidungs-Lizenz für Converse an, wodurch die Kategorie für aktiven Lebensstil erweitert wird. Das Unternehmen hob die Prognosen für das Geschäftsjahr 2025 an und erwartet, dass die Nettoumsätze um 3 % auf 3,20 Milliarden Dollar steigen, mit einem non-GAAP verwässerten EPS zwischen 3,95 und 4,05 Dollar. G-III hat außerdem 400 Millionen Dollar an vorrangigen gesicherten Anleihen zurückgezahlt und 1,2 Millionen Aktien für 31,6 Millionen Dollar zurückgekauft.
- Q2 non-GAAP net income per diluted share of $0.52 exceeded expectations
- DKNY and Karl Lagerfeld brands collectively grew double-digits
- Successful relaunch of Donna Karan brand
- New global apparel license agreement with Converse
- Raised fiscal 2025 earnings per diluted share guidance
- Repurchased 1.2 million shares for $31.6 million
- Inventories decreased 24% year-over-year
- Q2 net sales decreased 2% year-over-year to $644.8 million
- Anticipates $60 million in incremental expenses for brand launches
- Expected decrease in adjusted EBITDA for fiscal 2025 compared to fiscal 2024
Insights
G-III Apparel Group's Q2 FY2025 results show resilience in a challenging retail environment. Despite a
The
Overall, G-III's diversified brand portfolio and strategic initiatives position it well for long-term growth, but near-term macroeconomic uncertainties remain a concern.
G-III's Q2 results reflect the company's ability to navigate a complex retail landscape. The success of owned brands DKNY and Karl Lagerfeld, growing double-digits collectively, demonstrates the strength of G-III's brand management strategy. The Donna Karan relaunch's success further validates this approach.
The new Converse license is a strategic move to tap into the growing active lifestyle market, potentially opening new distribution channels and attracting a younger demographic. This diversification could help mitigate risks associated with any single brand or market segment.
While the
G-III's Q2 performance underscores its resilience in a challenging retail environment. The company's strategic focus on owned brands is paying off, with DKNY and Karl Lagerfeld driving growth. The successful Donna Karan relaunch demonstrates G-III's ability to revitalize and manage iconic fashion brands effectively.
The new Converse license is a smart move, allowing G-III to leverage its core capabilities in a high-growth segment. This expansion into active lifestyle apparel could help offset potential softness in other categories.
The company's inventory reduction of
While macroeconomic uncertainties persist, G-III's diverse brand portfolio and operational discipline position it well to navigate potential headwinds in the retail sector.
- Net Sales of
$644.8 Million for the Second Quarter Compared to$659.8 Million Last Year - Second Quarter GAAP and Non-GAAP Net Income Per Diluted Share Exceed Guidance
- Raises GAAP and Non-GAAP Net Income Per Diluted Share Guidance for Fiscal Year 2025
- Repaid
$400 Million Senior Secured Notes Due August 2025 - Repurchased 1.2 Million Shares of the Company’s Common Stock for
$31.6 Million - Announces New Global Apparel License for the Converse Brand
NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- G-III Apparel Group, Ltd. (NasdaqGS: GIII) today reported results for the second quarter of fiscal 2025 ended July 31, 2024.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “We delivered a strong first half of the year. Our second quarter non-GAAP net income per diluted share of
Mr. Goldfarb concluded, “Having the most desirable brands is central to our strategy and I am pleased with the transition to our go-forward portfolio, which will continue to evolve for the future. Our new businesses are working, and I am excited to announce a licensing agreement for Converse, Inc., a globally recognized American youth lifestyle brand. This new partnership represents a significant opportunity to expand our active lifestyle category while leveraging our core capabilities to build a global apparel business. The powerful combination of our brands, our business model and diverse growth drivers, together with our agility, operating discipline and strong foundation give us confidence that our strategy will deliver long-term shareholder value.”
Mr. Goldfarb concluded, “Given our second quarter earnings per diluted share outperformance, we are reaffirming our fiscal year 2025 net sales and, once again, raising our earnings per diluted share outlook. Despite the uncertain macroeconomic environment, we remain optimistic about the remainder of the year and our orderbook is in a good position for the important Fall and Holiday seasons.”
Results of Operations
Second Quarter Fiscal 2025 Financial Results
Net sales for the second quarter ended July 31, 2024 decreased
Net income for the second quarter was
Non-GAAP net income per diluted share was
Balance Sheet as of Second Quarter Fiscal 2025
Inventories decreased
During the quarter, we bought back 1,180,328 of our shares of common stock for an aggregate purchase price of
Converse License
G-III signed a license agreement for Converse, Inc. to design and produce men’s and women’s apparel for distribution globally. The product is expected to launch in Fall 2025. Converse is an iconic American youth lifestyle brand and represents a significant opportunity for G-III to expand the active lifestyle business, providing exposure to a differentiated consumer and distribution network while leveraging existing fashion talent.
Outlook
The Company today updated its outlook for the fiscal year ending January 31, 2025. This outlook continues to anticipate approximately
Fiscal 2025
Net sales are expected to increase by approximately
Net income is expected to be between
Non-GAAP net income for fiscal 2025 is expected to be between
Adjusted EBITDA for fiscal 2025 is expected to be between
Net interest expense is expected to be approximately
Third Quarter Fiscal 2025
Net sales for the third quarter of fiscal 2025 are expected to increase by approximately
Net income for the third quarter of fiscal 2025 is expected to be in the range of
Non-GAAP net income for the third quarter of fiscal 2025 is expected to be between
Non-GAAP Financial Measures
Reconciliations of GAAP net income to non-GAAP net income, GAAP net income per diluted share to non-GAAP net income per diluted share and GAAP net income 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 INCOME
(In thousands, except per share amounts)
| Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net sales | $ | 644,755 | $ | 659,761 | $ | 1,254,502 | $ | 1,266,350 | ||||||||
| Cost of goods sold | 368,881 | 383,108 | 719,735 | 739,897 | ||||||||||||
| Gross profit | 275,874 | 276,653 | 534,767 | 526,453 | ||||||||||||
| Selling, general and administrative expenses | 229,030 | 239,207 | 465,651 | 467,168 | ||||||||||||
| Depreciation and amortization | 5,380 | 5,959 | 14,148 | 12,535 | ||||||||||||
| Operating profit | 41,464 | 31,487 | 54,968 | 46,750 | ||||||||||||
| Other (loss) income | (2,952 | ) | 192 | (3,175 | ) | 1,165 | ||||||||||
| Interest and financing charges, net | (4,876 | ) | (9,492 | ) | (10,300 | ) | (21,642 | ) | ||||||||
| Income before income taxes | 33,636 | 22,187 | 41,493 | 26,273 | ||||||||||||
| Income tax expense | 9,447 | 5,951 | 11,752 | 6,896 | ||||||||||||
| Net income | 24,189 | 16,236 | 29,741 | 19,377 | ||||||||||||
| Less: Loss attributable to noncontrolling interests | (23 | ) | (202 | ) | (273 | ) | (297 | ) | ||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 24,212 | $ | 16,438 | $ | 30,014 | $ | 19,674 | ||||||||
| Net income attributable to G-III Apparel Group, Ltd. per common share: | ||||||||||||||||
| Basic | $ | 0.54 | $ | 0.36 | $ | 0.67 | $ | 0.43 | ||||||||
| Diluted | $ | 0.53 | $ | 0.35 | $ | 0.65 | $ | 0.42 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 44,569 | 45,714 | 45,022 | 45,996 | ||||||||||||
| Diluted | 45,483 | 46,570 | 46,105 | 46,992 | ||||||||||||
| Selected Balance Sheet Data (in thousands): | As of July 31, | |||||
| 2024 | 2023 | |||||
| (Unaudited) | ||||||
| Cash and cash equivalents | $ | 414,791 | $ | 197,735 | ||
| Working capital | 1,047,653 | 978,673 | ||||
| Inventories | 610,492 | 804,858 | ||||
| Total assets | 2,696,287 | 2,662,053 | ||||
| Total debt | 413,968 | 466,036 | ||||
| Operating lease liabilities | 218,733 | 247,544 | ||||
| Total stockholders' equity | 1,512,635 | 1,382,115 | ||||
G-III APPAREL GROUP, LTD. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
(In thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, 2024 | July 31, 2023 | July 31, 2024 | July 31, 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP net income attributable to G-III Apparel Group, Ltd. | $ | 24,212 | $ | 16,438 | $ | 30,014 | $ | 19,674 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Gain on forgiveness of liabilities | (600 | ) | — | (600 | ) | — | ||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 1,848 | — | 3,669 | ||||||||||||
| Non-cash imputed interest | — | 1,086 | — | 2,903 | ||||||||||||
| Income tax impact of non-GAAP adjustments | 168 | (786 | ) | 168 | (1,724 | ) | ||||||||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 23,780 | $ | 18,586 | $ | 29,582 | $ | 24,522 | ||||||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes (i) in the second quarter of fiscal 2025, the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own, (ii) in the second quarter of fiscal 2024, incentive compensation expenses related to the Karl Lagerfeld transaction and (iii) in the second quarter of fiscal 2024, non-cash imputed interest expense. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate 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 GAAP NET INCOME PER SHARE TO NON-GAAP NET INCOME PER SHARE
| Three Months Ended | Six Months Ended | |||||||||||||||
| July 31, 2024 | July 31, 2023 | July 31, 2024 | July 31, 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 0.53 | $ | 0.35 | $ | 0.65 | $ | 0.42 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Gain on forgiveness of liabilities | (0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 0.04 | — | 0.08 | ||||||||||||
| Non-cash imputed interest | — | 0.03 | — | 0.06 | ||||||||||||
| Income tax impact of non-GAAP adjustments | — | (0.02 | ) | — | (0.04 | ) | ||||||||||
| Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 0.52 | $ | 0.40 | $ | 0.64 | $ | 0.52 | ||||||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes (i) in the second quarter of fiscal 2025, the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own, (ii) in the second quarter of fiscal 2024, incentive compensation expenses related to the Karl Lagerfeld transaction and (iii) in the second quarter of fiscal 2024, non-cash imputed interest expense. The income tax impact of non-GAAP adjustments is calculated using the effective tax rate 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 NET INCOME TO FORECASTED AND ACTUAL ADJUSTED EBITDA
(In thousands)
| Forecasted Twelve | Actual Twelve | ||||||||||||||
| Three Months Ended | Months Ending | Months Ended | |||||||||||||
| July 31, 2024 | July 31, 2023 | January 31, 2025 | January 31, 2024 | ||||||||||||
| (Unaudited) | |||||||||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 24,212 | $ | 16,438 | $ | 179,000 - 184,000 | $ | 176,168 | |||||||
| Gain on forgiveness of liabilities | (600 | ) | — | (600 | ) | — | |||||||||
| Write-off of deferred financing costs | — | — | 1,700 | — | |||||||||||
| Asset impairments | — | — | — | 6,758 | |||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 1,848 | — | 6,115 | |||||||||||
| One-time expenses primarily related to our DKNY business in China | — | — | — | 3,138 | |||||||||||
| Change in fair value of earnout liability | — | — | — | (1,041 | ) | ||||||||||
| Depreciation and amortization | 5,380 | 5,959 | 31,000 | 27,523 | |||||||||||
| Interest and financing charges, net | 4,876 | 9,492 | 22,000 | 39,595 | |||||||||||
| Income tax expense | 9,447 | 5,951 | 71,900 | 65,859 | |||||||||||
| Adjusted EBITDA, as defined | $ | 43,315 | $ | 39,688 | $ | 305,000 - 310,000 | $ | 324,115 | |||||||
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 in fiscal 2025, (i) the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own, (ii) non-cash expense related to the write-off of deferred financing costs related to the redemption of our senior secured notes, and in fiscal 2024, (iii) asset impairments, (iv) incentive compensation expenses related to the Karl Lagerfeld transaction, (v) one-time expenses, primarily related to our DKNY business in China and (vi) the gain recorded from the reduction of the earnout liability related to our acquisition of Sonia Rykiel in fiscal 2022. 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, 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 TO FORECASTED AND ACTUAL NON-GAAP NET INCOME
(In thousands)
| Forecasted Three | Actual Three | Forecasted Twelve | Actual Twelve | |||||||||||||
| Months Ending | Months Ended | Months Ending | Months Ended | |||||||||||||
| October 31, 2024 | October 31, 2023 | January 31, 2025 | January 31, 2024 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 97,000-102,000 | $ | 127,640 | $ | 179,000 - 184,000 | $ | 176,168 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Gain on forgiveness of liabilities | — | — | (600 | ) | — | |||||||||||
| Write-off of deferred financing costs | 1,700 | — | 1,700 | — | ||||||||||||
| Asset impairments | — | 222 | — | 6,758 | ||||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 1,847 | — | 6,115 | ||||||||||||
| Non-cash imputed interest | — | 682 | — | 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 | (700 | ) | (761 | ) | (100 | ) | (5,137 | ) | ||||||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 98,000-103,000 | $ | 129,630 | $ | 180,000 - 185,000 | $ | 189,799 | ||||||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes in fiscal 2025, (i) the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own, (ii) non-cash expense related to the write-off of deferred financing costs related to the redemption of our senior secured notes, and in fiscal 2024, (iii) asset impairments, (iv) incentive compensation expenses related to the Karl Lagerfeld transaction, (v) non-cash imputed interest expense, (vi) one-time expenses, primarily related to our DKNY business in China and (vii) 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 PER SHARE TO FORECASTED AND ACTUAL NON-GAAP NET INCOME PER SHARE
| Forecasted Three | Actual Three | Forecasted Twelve | Actual Twelve | |||||||||||||
| Months Ending | Months Ended | Months Ending | Months Ended | |||||||||||||
| October 31, 2024 | October 31, 2023 | January 31, 2025 | January 31, 2024 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 2.18 - 2.28 | $ | 2.74 | $ | 3.94 - 4.04 | $ | 3.75 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Gain on forgiveness of liabilities | — | — | (0.01 | ) | — | |||||||||||
| Write-off of deferred financing costs | 0.03 | — | 0.03 | — | ||||||||||||
| Asset impairments | — | 0.01 | — | 0.14 | ||||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 0.04 | — | 0.13 | ||||||||||||
| Non-cash imputed interest | — | 0.01 | — | 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 | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.11 | ) | ||||||||
| Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 2.20 - 2.30 | $ | 2.78 | $ | 3.95 - 4.05 | $ | 4.04 | ||||||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes in fiscal 2025, (i) the gain on the forgiveness of certain liabilities related to the acquisition of the minority interest of our DKNY business in China that we did not already own, (ii) non-cash expense related to the write-off of deferred financing costs related to the redemption of our senior secured notes, and in fiscal 2024, (iii) asset impairments, (iv) incentive compensation expenses related to the Karl Lagerfeld transaction, (v) non-cash imputed interest expense, (vi) one-time expenses, primarily related to our DKNY business in China and (vii) 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.
Company Contact:
Priya Trivedi
SVP of Investor Relations and Treasurer
(646) 473-5228
Company Media Contact:
Andrew Blecher
andrew.blecher@g-iii.com
FAQ
What were G-III Apparel Group's Q2 fiscal 2025 financial results?
Has G-III Apparel Group (GIII) updated its fiscal 2025 outlook?
What new brand license did G-III Apparel Group announce for fiscal 2025?
How did G-III Apparel Group's (GIII) inventory levels change in Q2 fiscal 2025?
