The US textile group G-III Apparel Group Ltd. was able to achieve surprisingly strong growth in the first three months of the 2022/23 financial year. CEO Morris Goldfarb was accordingly satisfied: “Our strong momentum continued in the first quarter, so that sales and earnings exceeded expectations despite the difficult general conditions,” he explained in an interim report published on Tuesday evening. “Customers are freshening up their wardrobes for returning to work and social activities, driving demand for our products.”
The parent company of brands such as Donna Karan, DKNY, Sonia Rykiel and Vilebrequin, which also took over the Karl Lagerfeld label a few days ago, had sales of 688.8 million US dollars (645.1 Million Euros). This corresponded to an increase of 32.5 percent compared to the same quarter of the previous year.
G-III also made progress in terms of earnings: Operating income grew by 16.5 percent to $54.5 million, net income attributable to shareholders was $30.6 million and thus 16.4 percent above the level of the same period of the previous year. Adjusted for special items, including one-time costs related to the Karl Lagerfeld acquisition, net income rose 28.2 percent to $35.2 million.
In light of the better-than-expected quarterly figures, the company raised its full-year revenue target to $3.24 billion from $3.0 billion. The updated forecast includes a contribution of about $140 million from new signing Karl Lagerfeld. The company continues to expect reported net income of between 205.0 and 215.0 million US dollars, but adjusted for special effects the surplus is now expected to rise to 213.0 to 223.0 million US dollars.