G-III POSTS STRONG INCREASES FOR THIRD QUARTER

dkny
by Brian Lipton Dec 05, 2017

dkny Outerwear giant G-III Apparel Group, which owns or licenses such brands as Donna Karan, DKNY, Vilebrequin, Andrew Marc, Calvin Klein, Tommy Hilfiger and Kenneth Cole, has announced operating results for the third quarter of fiscal 2018 ended October 31, 2017.

Net sales for the company increased 16 percent to $1.02 billion from $883.5 million in the year-ago period. This increase includes net sales of approximately $88.0 million of our DKNY and Donna Karan products. The company’s net income for the third quarter increased to $81.6 million, or $1.65 per diluted share, from $70.6 million, or $1.50 per diluted share, in the prior year’s comparable period.

On an adjusted basis, excluding for the third quarter of fiscal 2018 non-cash imputed interest expense of $1.4 million related to the note issued to the seller as part of the consideration for the acquisition of Donna Karan International, equal to $0.02 per share, non-GAAP net income per share for the third quarter of fiscal 2018 was $1.67.

Calvin Klein“We are pleased with our third quarter results which surpassed our plan,” said Morris Goldfarb, G-III’s chairman and chief executive officer. “We have executed our strategy with well-known brands and compelling product in an environment that remains challenging across our industry. Our products are selling well as we head into the holiday season and we expect to close the year with improved results and sustained momentum.”

In addition, G-III increased its prior net income guidance for the full fiscal year ending January 31, 2018. It now expects net income to be between $66 million and $71 million, or between $1.33 and $1.43 per diluted share, while it previously forecasted net income between $56 million and $60 million, or between $1.11 and $1.21 per diluted share. Meanwhile, G-III continues to forecast net sales of approximately $2.80 billion.

“We have a growth strategy that works,” added Goldfarb. “We continue to own and align with great brands, control our distribution well, approach every relationship as a partner, and deliver to the consumer a truly outstanding range of product. These commitments have served us well and will continue to illuminate our path to long term success.”