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Apr 30, 2023
G-III Apparel Q1 2024 Earnings Report
G-III Apparel exceeded expectations for the first quarter, with net sales of $606.6 million and non-GAAP net income per diluted share of $0.13. The company raised its guidance for fiscal year 2024 and announced a new long-term license for the Halston brand.
Key Takeaways
G-III Apparel Group reported strong Q1 fiscal 2024 results, exceeding both top and bottom-line guidance. Net sales reached $606.6 million, and non-GAAP net income per diluted share was $0.13. The company also rightsized its inventory and announced a licensing agreement with Xcel Brands for the Halston brand. Raised fiscal year 2024 guidance due to positive results.
Net sales for the first quarter decreased 11.9% to $606.6 million compared to $688.8 million in the prior year’s quarter.
Net income for the first quarter was $3.2 million, or $0.07 per diluted share, compared to $30.6 million, or $0.62 per diluted share, in the prior year’s quarter.
Non-GAAP net income per diluted share was $0.13 for the first quarter, compared to $0.72 in the same period last year.
G-III signed a 25-year master license agreement with Xcel Brands for the Halston brand.
G-III Apparel
G-III Apparel
Forward Guidance
The Company today raised its guidance for the fiscal year ending January 31, 2024. For fiscal 2024, the Company expects net sales of approximately $3.29 billion and net income between $125.0 million and $130.0 million, or between $2.65 and $2.75 per diluted share.
Positive Outlook
- The Company expects net sales of approximately $3.29 billion
- The Company expects net income between $125.0 million and $130.0 million
- The Company expects net income between $2.65 and $2.75 per diluted share.
- The Company is anticipating non-GAAP net income for fiscal 2024 between $132.0 million and $137.0 million
- The Company is anticipating non-GAAP net income between $2.80 and $2.90 per diluted share.
Challenges Ahead
- The Company’s fiscal year 2024 guidance anticipates the expected impact from current levels of inflationary pressure on consumers
- The Company’s fiscal year 2024 guidance anticipates the expected impact on the Company’s operations
- The Company’s fiscal year 2024 guidance anticipates incremental costs associated with managing higher levels of inventory.
- For the second quarter of fiscal year 2024, the Company expects net sales of approximately $595.0 million compared to $605.2 million in the same period last year.
- The Company expects a net loss for the second quarter of fiscal 2024 in the range $(5.0) million and break even or between $(0.10) and $0.00 per share.