The US clothing group G-III Apparel Group Inc. presented surprisingly good results for the 2021/22 financial year on Thursday and forecast further growth. The company does not expect any major financial consequences from the Russian invasion of Ukraine.
The textile supplier, which owns the Donna Karan fashion house, among others, generated group sales of 2.77 billion US dollars (2.50 billion euros) in the fiscal year ended January, surpassing the previous year’s level by 35 percent. The company was also able to increase its earnings significantly: the net profit attributable to the shareholders jumped from 23.5 to 200.6 million US dollars (180.9 million euros). Chairman and CEO Morris Goldfarb was extremely satisfied with the figures presented: G-III had “the strongest year in the company’s history,” he said in a statement.
Management is aiming for further progress in the current financial year: Sales are to be increased to around 3.0 billion US dollars, the forecast range for net profit ranges from 205.0 to 215.0 million US dollars. The outlook takes into account the expected consequences of the ongoing global supply problems, including higher costs and postponements, but not possible burdens in the event of a tightening of protective measures against the Covid 19 pandemic, the company said. Should restrictions and shop closures be ordered again, the results could therefore “deviate significantly from the current forecast”. The group also emphasized that it does not have its own business activities in Russia and Ukraine. The sales contribution from these countries therefore only has an “insignificant effect” on business development in the current year, explained G-III.