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Jan 31, 2022

G-III Apparel Q4 2022 Earnings Report

G-III Apparel Group announced Q4 2022 results, delivering increased net sales and net income per diluted share compared to the same quarter last year.

Key Takeaways

G-III Apparel Group reported a strong fourth quarter and full fiscal year 2022. Net sales for the fourth quarter increased by 42% to $748.2 million, and net income per diluted share rose to $0.98 compared to $0.30 in the same quarter last year. The company's strong performance was attributed to capturing market share and working with retail partners despite supply chain challenges.

G-III Apparel Group delivered its highest annual net income per diluted share in company history for fiscal year 2022.

Fiscal year net sales increased to $2.77 billion compared to $2.06 billion last year.

Net sales for the fourth quarter increased to $748.2 million compared to $526.2 million last year.

Net income per diluted share for the fourth quarter rose to $0.98 compared to $0.30 last year.

Total Revenue
$748M
Previous year: $526M
+42.2%
EPS
$0.98
Previous year: $0.3
+226.7%
Gross Profit
$252M
Previous year: $188M
+34.5%
Cash and Equivalents
$466M
Previous year: $352M
+32.4%
Total Assets
$2.74B
Previous year: $2.43B
+13.0%

G-III Apparel

G-III Apparel

Forward Guidance

The Company issued guidance for the fiscal year ending January 31, 2023, expecting net sales of approximately $3.0 billion and net income between $205.0 million and $215.0 million, or between $4.20 and $4.30 per diluted share. For the first quarter of fiscal year 2023, the Company expects net sales of approximately $600.0 million and net income to be in the range $25.0 million and $30.0 million, or $0.50 and $0.60 per diluted share.

Positive Outlook

  • Expected net sales of approximately $3.0 billion for fiscal year 2023.
  • Net income between $205.0 million and $215.0 million for fiscal year 2023.
  • Diluted EPS between $4.20 and $4.30 for fiscal year 2023.
  • Net sales of approximately $600.0 million for the first quarter of fiscal year 2023.
  • Net income in the range of $25.0 million and $30.0 million for the first quarter of fiscal year 2023.

Challenges Ahead

  • Guidance contemplates the expected impact from the current supply chain conditions, including expected increased shipping costs and delays in receipt of goods.
  • Guidance does not contemplate any reimposition of government-mandated store closures or other governmental restrictions as the result of new COVID-19 variants that may emerge.
  • Reimposition of store closures or other restrictions could have a material impact on net sales, results of operations and supply chain during fiscal 2023.
  • Fiscal 2023 results could differ materially from its current outlook as a result of the occurrence of any of these or other uncontemplated events.
  • Exposure from sales to Russia or Ukraine are expected to have an immaterial impact on the financial results of fiscal year 2023.