G-III Apparel Group has raised its targets for the fiscal year after reporting a nine percent increase in second-quarter sales but also a decline in profit.
The group, whose portfolio includes the Karl Lagerfeld, DKNY and Donna Karan brands, posted sales of $659.8 million (€616.8 million) in the three months to July 31. In the same period last year, sales were $605.2 million. However, net profit fell to $16.4 million from $36.3 million in the same period last year.
“For the second quarter of fiscal 2024, we once again exceeded both our revenue and profit guidance and made progress on our strategic priorities,” said CEO Morris Goldfarb.
G-III raises forecast
It is the second time the group has raised its targets in recent months, having raised them in June when it announced better-than-expected first-quarter results.
The group now expects full-year sales of about $3.30 billion, compared to the previous forecast of about $3.29 billion. The company expects full-year net income to be between $145 million and $150 million, up from previous guidance of $125 million to $130 million.
Goldfarb added: “Our balance sheet provides us with financial flexibility to invest in our business and consider additional opportunities.
“Agility is at the core of everything we do at G-III and I am confident that we will continue to evolve regardless of external factors. We will continue to drive our business forward and expect to deliver good results for our shareholders.”
G-III also announced Thursday that its latest licensing agreement with HanesBrands will produce an outerwear collection for the Champion brand.
This translated and edited post previously appeared on FashionUnited.uk.