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The comeback continues at G-III Apparel Group Ltd.
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“We delivered outstanding second quarter results that exceeded our guidance for both the top and bottom lines,” Morris Goldfarb, G-III’s chairman and chief executive officer, said in a statement. “Throughout the pandemic, we navigated through the challenges as our world class teams have remained focused on delivering positive results. We are encouraged by the strong consumer demand that we are seeing for apparel and accessories. Although some uncertainties remain, we feel good about our business, giving us the confidence to raise our guidance.
“The strength in our casual categories continues. We are also pleased to see increased demand for broader lifestyle categories, including dresses and career wear,” Goldfarb continued. “G-III’s diversified product categories, ranging across our globally recognized power brands — DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris — position us well to meet the increasing demand for our products.”
But Wall Street wasn’t entirely convinced. Shares of G-III Apparel teetered back and forth between positive and negative during Thursday’s session.
Total revenues for the three-month period ending July 31 were $483 million, up from $297 million a year ago. G-III logged $19.1 million in profits as a result, compared with losses of $14.9 million last year.
Goldfarb told analysts on Thursday morning’s conference call that casual styles, jeans, athleisure and outerwear continue to be growth drivers.
“Casual dressing has become ingrained in our way of life and consumers are now looking for a well-rounded wardrobe, ranging from lounge at home to a more sophisticated relaxed look,” he said. “Additionally, these categories offer growth opportunities, including expansion into the outdoor and sports markets.”
The retailer is now anticipating third quarter revenues to be about $1 billion, with net income between $80 million and $90 million, or between $1.65 and $1.75 a diluted share.
The firm also raised its full fiscal year 2022 outlook, now expecting net revenues of about $2.7 billion, up from its previous estimates of $2.57 billion, and net income between $155 million and $165 million, up from the previous forecast of between $125 million and $135 million. The company anticipates earnings-per-share between $3.10 and $3.20, up from its previous estimates between $2.60 and $2.70.
G-III — which also includes luxury swimwear brand Vilebrequin, Eliza J, Jessica Howard, Andrew Marc and Marc New York in the greater portfolio, in addition to fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s and Dockers brands — permanently closed all of its Wilsons Leather and G.H. Bass stores — nearly 200 locations — last year.
The company ended the quarter with nearly $510 million in cash and cash equivalents and $517 million in long-term debt.
Shares of G-III Apparel are up about 185 percent, year-over-year.