G-III Apparel Group, Ltd. Reports Third Quarter Fiscal 2025 Results Above Guidance; Updates Fiscal 2025 Outlook
G-III Apparel Group reported strong Q3 fiscal 2025 results, with net sales increasing 1.8% to $1.09 billion compared to $1.07 billion last year. The company's key owned brands (DKNY, Karl Lagerfeld, Donna Karan, and Vilebrequin) achieved over 30% organic growth. Net income was $114.8 million, or $2.55 per diluted share, compared to $127.6 million ($2.74 per share) in the prior year.
The company raised its fiscal 2025 guidance, now expecting net sales to increase by approximately 2% to $3.15 billion. Inventories decreased 10% to $532.5 million, and total debt decreased 52% to $224.2 million. The company voluntarily redeemed $400 million in senior secured notes in August 2024.
G-III Apparel Group ha riportato risultati solidi per il terzo trimestre dell'esercizio 2025, con un aumento delle vendite nette dell'1,8% a 1,09 miliardi di dollari, rispetto a 1,07 miliardi di dollari dell'anno scorso. I principali marchi di proprietà dell'azienda (DKNY, Karl Lagerfeld, Donna Karan e Vilebrequin) hanno raggiunto una crescita organica superiore al 30%. L'utile netto è stato di 114,8 milioni di dollari, ovvero 2,55 dollari per azione diluita, rispetto a 127,6 milioni di dollari (2,74 dollari per azione) dell'anno precedente.
L'azienda ha alzato le previsioni per l'esercizio 2025, ora prevedendo un aumento delle vendite nette di circa il 2% a 3,15 miliardi di dollari. Le scorte sono diminuite del 10% a 532,5 milioni di dollari e il debito totale è diminuito del 52% a 224,2 milioni di dollari. L'azienda ha volontariamente riscattato 400 milioni di dollari in note garantite senior nell'agosto 2024.
G-III Apparel Group informó resultados sólidos para el tercer trimestre del año fiscal 2025, con un aumento del 1.8% en las ventas netas a 1.09 mil millones de dólares en comparación con 1.07 mil millones de dólares del año pasado. Las principales marcas propias de la empresa (DKNY, Karl Lagerfeld, Donna Karan y Vilebrequin) lograron un crecimiento orgánico superior al 30%. La utilidad neta fue de 114.8 millones de dólares, o 2.55 dólares por acción diluida, en comparación con 127.6 millones de dólares (2.74 dólares por acción) en el año anterior.
La compañía elevó su guía para el año fiscal 2025, ahora esperando un aumento en las ventas netas de aproximadamente el 2% a 3.15 mil millones de dólares. Los inventarios disminuyeron un 10% a 532.5 millones de dólares, y la deuda total disminuyó un 52% a 224.2 millones de dólares. La compañía redimió voluntariamente 400 millones de dólares en bonos garantizados senior en agosto de 2024.
G-III Apparel Group는 2025 회계년 3분기 실적을 발표했으며, 순매출은 1.8% 증가하여 10억 9천만 달러에 달했습니다. 작년의 10억 7천만 달러에 비해 증가한 수치입니다. 회사의 주요 소유 브랜드(DKNY, Karl Lagerfeld, Donna Karan 및 Vilebrequin)는 30% 이상의 유기적 성장을 달성했습니다. 순이익은 1억 1천만 달러로 희석주당 2.55달러입니다. 이는 작년의 1억 2천7백60만 달러(주당 2.74달러)와 비교됩니다.
회사는 2025 회계연도 가이던스를 상향 조정하여 순매출이 약 2% 증가한 31억 5천만 달러에 이를 것으로 예상하고 있습니다. 재고는 10% 감소하여 5억 3천2백50만 달러에 이르렀고, 총 부채는 52% 감소하여 2억 2천4백20만 달러가 되었습니다. 회사는 2024년 8월에 4억 달러의 선순위 담보 노트를 자발적으로 상환했습니다.
G-III Apparel Group a annoncé de bons résultats pour le troisième trimestre de l'exercice 2025, avec des ventes nettes en hausse de 1,8 % à 1,09 milliard de dollars par rapport à 1,07 milliard de dollars l'année dernière. Les principales marques détenues par l'entreprise (DKNY, Karl Lagerfeld, Donna Karan et Vilebrequin) ont réalisé plus de 30 % de croissance organique. Le bénéfice net s'élevait à 114,8 millions de dollars, soit 2,55 dollars par action diluée, contre 127,6 millions de dollars (2,74 dollars par action) l'année précédente.
L'entreprise a relevé ses prévisions pour l'exercice 2025, s'attendant désormais à une augmentation des ventes nettes d'environ 2 % pour atteindre 3,15 milliards de dollars. Les stocks ont diminué de 10 % pour atteindre 532,5 millions de dollars, et la dette totale a diminué de 52 % pour s'établir à 224,2 millions de dollars. L'entreprise a racheté volontairement pour 400 millions de dollars en obligations sécurisées seniors en août 2024.
G-III Apparel Group meldete starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2025, mit einem Anstieg des Nettoumsatzes um 1,8 % auf 1,09 Milliarden Dollar im Vergleich zu 1,07 Milliarden Dollar im Vorjahr. Die wichtigsten eigenen Marken des Unternehmens (DKNY, Karl Lagerfeld, Donna Karan und Vilebrequin) erzielten ein organisches Wachstum von über 30 %. Der Nettogewinn lag bei 114,8 Millionen Dollar, oder 2,55 Dollar pro verwässerter Aktie, verglichen mit 127,6 Millionen Dollar (2,74 Dollar pro Aktie) im Vorjahr.
Das Unternehmen hob die Prognose für das Geschäftsjahr 2025 an und erwartet nun, dass der Nettoumsatz um etwa 2 % auf 3,15 Milliarden Dollar steigen wird. Die Bestände gingen um 10 % auf 532,5 Millionen Dollar zurück, und die Gesamtverschuldung fiel um 52 % auf 224,2 Millionen Dollar. Das Unternehmen hat im August 2024 freiwillig 400 Millionen Dollar an vorrangigen besicherten Anleihen zurückgezahlt.
- Net sales increased 1.8% to $1.09 billion in Q3
- Key owned brands achieved over 30% organic growth
- Inventory levels decreased 10% to $532.5 million
- Total debt reduced by 52% to $224.2 million
- Raised full-year earnings guidance for fiscal 2025
- Q3 net income decreased to $114.8 million from $127.6 million year-over-year
- Earnings per share declined to $2.55 from $2.74 in prior year's Q3
- Reduced net sales guidance from $3.20 billion to $3.15 billion
- $55 million in incremental expenses expected for brand launches
Insights
The Q3 FY2025 results demonstrate solid execution despite challenging market conditions. Key highlights include
The company's financial health shows marked improvement with inventory down
The raised FY2025 guidance, projecting net sales of
G-III's strategic transformation is yielding results, particularly in its owned brand portfolio. The strong performance of DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin brands showcases successful brand management and market positioning. The company's ability to achieve margin expansion despite challenging consumer environment and supply chain disruptions is noteworthy.
The investment in marketing initiatives, particularly the
- Third Quarter GAAP and Non-GAAP Net Income Per Diluted Share Exceed Guidance
- Net Sales of
$1.09 Billion for the Third Quarter Compared to$1.07 Billion Last Year - Net Income Per Diluted Share of
$2.55 for the Third Quarter Compared to$2.74 Last Year - Non-GAAP Net Income Per Diluted Share of
$2.59 for the Third Quarter Compared to$2.78 Last Year - Raises GAAP and Non-GAAP Net Income Per Diluted Share Guidance for Fiscal 2025
NEW YORK, Dec. 10, 2024 (GLOBE NEWSWIRE) -- G-III Apparel Group, Ltd. (NasdaqGS: GIII) today reported results for the third quarter of fiscal 2025 ended October 31, 2024.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over
Mr. Goldfarb concluded, “Looking at the remainder of the year, given our significant third quarter earnings outperformance, we are once again raising our earnings per diluted share guidance for fiscal 2025. Our proven track record of success and our strong balance sheet give us ample flexibility to invest in long-term opportunities to expand our business, while delivering on our commitment to drive long-term sustainable growth and shareholder value.”
Results of Operations
Third Quarter Fiscal 2025 Financial Results
Net sales for the third quarter ended October 31, 2024 increased
Net income for the third quarter ended October 31, 2024 was
Non-GAAP net income per diluted share was
Balance Sheet as of Third Quarter Fiscal 2025
Inventories decreased
Total debt decreased
Outlook
The Company today updated its outlook for the fiscal year ending January 31, 2025. This outlook anticipates the current macroeconomic and consumer environment, as well as the unseasonable weather. The outlook further includes 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
We estimate a tax rate of
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, Converse 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 October 31, | Nine Months Ended October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Net sales | $ | 1,086,759 | $ | 1,067,110 | $ | 2,341,261 | $ | 2,333,460 | ||||||||
| Cost of goods sold | 654,628 | 633,697 | 1,374,363 | 1,373,594 | ||||||||||||
| Gross profit | 432,131 | 433,413 | 966,898 | 959,866 | ||||||||||||
| Selling, general and administrative expenses | 259,240 | 236,308 | 724,891 | 703,476 | ||||||||||||
| Depreciation and amortization | 6,556 | 6,595 | 20,704 | 19,130 | ||||||||||||
| Asset impairments | — | 222 | — | 222 | ||||||||||||
| Operating profit | 166,335 | 190,288 | 221,303 | 237,038 | ||||||||||||
| Other income (loss) | 942 | (3,129 | ) | (2,233 | ) | (1,964 | ) | |||||||||
| Interest and financing charges, net | (6,358 | ) | (11,024 | ) | (16,658 | ) | (32,666 | ) | ||||||||
| Income before income taxes | 160,919 | 176,135 | 202,412 | 202,408 | ||||||||||||
| Income tax expense | 46,151 | 48,755 | 57,903 | 55,651 | ||||||||||||
| Net income | 114,768 | 127,380 | 144,509 | 146,757 | ||||||||||||
| Less: Loss attributable to noncontrolling interests | — | (260 | ) | (273 | ) | (557 | ) | |||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 114,768 | $ | 127,640 | $ | 144,782 | $ | 147,314 | ||||||||
| Net income attributable to G-III Apparel Group, Ltd. per common share: | ||||||||||||||||
| Basic | $ | 2.62 | $ | 2.79 | $ | 3.24 | $ | 3.21 | ||||||||
| Diluted | $ | 2.55 | $ | 2.74 | $ | 3.17 | $ | 3.13 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 43,885 | 45,723 | 44,640 | 45,904 | ||||||||||||
| Diluted | 44,954 | 46,560 | 45,719 | 46,992 | ||||||||||||
| Selected Balance Sheet Data (in thousands): | As of October 31, | |||||
| 2024 | 2023 | |||||
| (Unaudited) | ||||||
| Cash and cash equivalents | $ | 104,686 | $ | 197,391 | ||
| Working capital | 980,899 | 1,110,793 | ||||
| Inventories | 532,463 | 591,530 | ||||
| Total assets | 2,783,611 | 2,749,333 | ||||
| Total debt | 224,175 | 461,945 | ||||
| Operating lease liabilities | 302,313 | 239,419 | ||||
| Total stockholders' equity | 1,648,726 | 1,503,220 | ||||
| G-III APPAREL GROUP, LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME (In thousands) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| October 31, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP net income attributable to G-III Apparel Group, Ltd. | $ | 114,768 | $ | 127,640 | $ | 144,782 | $ | 147,314 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Write-off of deferred financing costs | 1,598 | — | 1,598 | — | ||||||||||||
| One-time warehouse related severance expenses | 530 | — | 559 | — | ||||||||||||
| Gain on forgiveness of liabilities | — | — | (600 | ) | — | |||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 1,847 | — | 5,517 | ||||||||||||
| Non-cash imputed interest | — | 682 | — | 3,585 | ||||||||||||
| Asset impairments | — | 222 | 222 | |||||||||||||
| Income tax impact of non-GAAP adjustments | (610 | ) | (761 | ) | (446 | ) | (2,563 | ) | ||||||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 116,286 | $ | 129,630 | $ | 145,893 | $ | 154,075 | ||||||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes (i) in the third quarter of fiscal 2025, the write-off of deferred financing costs related to the redemption of the Notes, (ii) in the third quarter of fiscal 2025, one-time severance expenses related to a closed warehouse, (iii) 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, (iv) in the third quarter of fiscal 2024, incentive compensation expenses related to the Karl Lagerfeld transaction, (v) in the third quarter of fiscal 2024, non-cash imputed interest expense and (vi) in the third quarter of fiscal 2024, asset impairments. 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 | Nine Months Ended | |||||||||||||||
| October 31, 2024 | October 31, 2023 | October 31, 2024 | October 31, 2023 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 2.55 | $ | 2.74 | $ | 3.17 | $ | 3.13 | ||||||||
| Excluded from non-GAAP: | ||||||||||||||||
| Write-off of deferred financing costs | 0.04 | — | 0.03 | — | ||||||||||||
| One-time warehouse related severance expenses | 0.01 | — | 0.01 | — | ||||||||||||
| Gain on forgiveness of liabilities | — | — | (0.01 | ) | — | |||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 0.04 | — | 0.12 | ||||||||||||
| Non-cash imputed interest | — | 0.01 | — | 0.08 | ||||||||||||
| Asset impairments | — | 0.01 | — | — | ||||||||||||
| Income tax impact of non-GAAP adjustments | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.05 | ) | ||||||||
| Non-GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 2.59 | $ | 2.78 | $ | 3.19 | $ | 3.28 | ||||||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes (i) in the third quarter of fiscal 2025, the write-off of deferred financing costs related to the redemption of the Notes, (ii) in the third quarter of fiscal 2025, one-time severance expenses related to a closed warehouse, (iii) 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, (iv) in the third quarter of fiscal 2024, incentive compensation expenses related to the Karl Lagerfeld transaction, (v) in the third quarter of fiscal 2024, non-cash imputed interest expense and (vi) in the third quarter of fiscal 2024, asset impairments. 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 | ||||||||||||
| October 31, 2024 | October 31, 2023 | January 31, 2025 | January 31, 2024 | |||||||||||
| (Unaudited) | ||||||||||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 114,768 | $ | 127,640 | $ | 185,000 - 190,000 | $ | 176,168 | ||||||
| One-time warehouse related severance expenses | 530 | — | 559 | — | ||||||||||
| Gain on forgiveness of liabilities | — | — | (600 | ) | — | |||||||||
| Asset impairments | — | 222 | — | 6,758 | ||||||||||
| Expenses related to Karl Lagerfeld acquisition | — | 1,847 | — | 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 | 6,556 | 6,595 | 29,000 | 27,523 | ||||||||||
| Interest and financing charges, net | 6,358 | 11,024 | 20,000 | 39,595 | ||||||||||
| Income tax expense | 46,151 | 48,755 | 75,041 | 65,859 | ||||||||||
| Adjusted EBITDA, as defined | $ | 174,363 | $ | 196,083 | $ | 309,000 - 314,000 | $ | 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) one-time severance expenses related to a closed warehouse, (ii) 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, 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 Twelve | Actual Twelve | |||||||
| Months Ending | Months Ended | |||||||
| January 31, 2025 | January 31, 2024 | |||||||
| Net income attributable to G-III Apparel Group, Ltd. | $ | 185,000 - 190,000 | $ | 176,168 | ||||
| Excluded from non-GAAP: | ||||||||
| Write-off of deferred financing costs | 1,598 | — | ||||||
| One-time warehouse related severance expenses | 559 | — | ||||||
| Gain on forgiveness of liabilities | (600 | ) | — | |||||
| Asset impairments | — | 6,758 | ||||||
| Expenses related to Karl Lagerfeld acquisition | — | 6,115 | ||||||
| Non-cash imputed interest | — | 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 | (557 | ) | (5,137 | ) | ||||
| Non-GAAP net income attributable to G-III Apparel Group, Ltd., as defined | $ | 186,000 - 191,000 | $ | 189,799 | ||||
Non-GAAP net income is a “non-GAAP financial measure” that excludes in fiscal 2025, (i) the write-off of deferred financing costs related to the redemption of the Notes, (ii) one-time severance expenses related to a closed warehouse, (iii) 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, 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 Twelve | Actual Twelve | |||||||
| Months Ending | Months Ended | |||||||
| January 31, 2025 | January 31, 2024 | |||||||
| GAAP diluted net income attributable to G-III Apparel Group, Ltd. per common share | $ | 4.08 - 4.18 | $ | 3.75 | ||||
| Excluded from non-GAAP: | ||||||||
| Write-off of deferred financing costs | 0.04 | — | ||||||
| One-time warehouse related severance expenses | 0.01 | — | ||||||
| Gain on forgiveness of liabilities | (0.01 | ) | — | |||||
| Asset impairments | — | 0.14 | ||||||
| Expenses related to Karl Lagerfeld acquisition | — | 0.13 | ||||||
| Non-cash imputed interest | — | 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 attributable to G-III Apparel Group, Ltd. per common share, as defined | $ | 4.10 - 4.20 | $ | 4.04 | ||||
Non-GAAP diluted net income per common share is a “non-GAAP financial measure” that excludes in fiscal 2025, (i) the write-off of deferred financing costs related to the redemption of the Notes, (ii) one-time severance expenses related to a closed warehouse, (iii) 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, 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
FAQ
What was G-III Apparel Group's (GIII) Q3 2025 revenue?
How much did GIII's earnings per share decrease in Q3 2025?
What is GIII's updated revenue guidance for fiscal 2025?
How much did GIII reduce its debt in Q3 2025?
