The US textile group G-III Apparel Group Ltd. had to accept significant losses in sales and earnings in the first quarter of the 2023/24 financial year, but was able to exceed market expectations. As a result, the parent company of brands including Donna Karan, DKNY, Karl Lagerfeld and Sonia Rykiel raised its full-year guidance on Tuesday.
In the period from February to April, group sales reached a level of 606.6 million US dollars (567.8 million euros). It was thus 11.9 percent below the level of the same quarter of the previous year. Earnings also fell sharply, with net income attributable to shareholders down 89.4 percent to $3.24 million. Adjusted for special effects, it fell by 82.8 percent to $6.03 million, but was above analysts’ forecasts.
In light of the numbers, the company raised its targets for the full year. Management now forecasts revenue of approximately $3.29 billion and net income of between $125.0 million and $130.0 million. Previously, the company had forecast sales in the vicinity of the prior year’s level of US$3.23 billion and a profit in the range of US$117.0 million to US$122.0 million.
In addition to the current figures, the company also announced the conclusion of a 25-year license agreement with the conglomerate Xcel Brands Inc. for the clothing brand Halston. As part of the partnership, G-III will design and manufacture all of Halston’s products from the fall 2024 season, according to a statement. In addition, the group will receive a purchase option for Halston at the end of the contract period. The agreement offers G-III another “significant growth opportunity,” the company said.