The US textile group G-III Apparel Group Ltd. closed the second quarter of the 2022/23 financial year with strong growth in sales and earnings. However, amid deteriorating market conditions, the parent company of brands including Karl Lagerfeld, Donna Karan and Sonia Rykiel lowered its full-year guidance on Wednesday.
For the months of May through June, G-III consolidated sales were $605.2 million (€611.4 million). It thus exceeded the level of the same quarter of the previous year by 25.3 percent. However, due to higher costs, the operating result fell by 19.7 percent to 31.3 million US dollars. The bottom line was still a significantly higher surplus: the net profit attributable to the shareholders grew by 89.5 percent to 36.3 million US dollars (36.7 million euros). However, the company only owed the increase to positive special effects in the course of the complete takeover of the Karl Lagerfeld brand. Adjusted for one-time factors, net income fell 6.1 percent to $19.0 million.
Due to the overall economic development, the management lowered its forecasts for the current financial year: It now only expects sales of around USD 3.15 billion, after USD 3.24 billion had previously been expected. Net income target range revised from $205.0-$215.0 million to $182-$187 million. “Given the difficult environment that has been rapidly evolving in recent months, we are taking a more conservative approach for the remainder of the year,” Chairman and CEO Morris Goldfarb said in a statement.