The US textile group G-III Apparel Group Ltd. closed the 2022/23 financial year in deep red despite strong sales growth. The reason given by the parent company of brands such as Donna Karan, DKNY, Karl Lagerfeld and Sonia Rykiel was high value adjustments that had to be made in the final quarter. However, CEO Morris Goldfarb emphasized that the group had made “significant progress in implementing its strategic priorities”.
The group, which completely took over the Karl Lagerfeld brand last summer, achieved sales of 3.23 billion US dollars (3.04 billion euros) in the fiscal year ended January, exceeding the level of the previous year by 16. 6 percent.
However, higher costs and value adjustments of almost 350 million US dollars ensured that G-III slipped into the red. Operating loss was $109.5 million after reporting an operating profit of $311.1 million in 2021/22.
The bottom line was a net loss attributable to shareholders of $133.1 million. In the previous year, the group had reported a surplus of 200.6 million US dollars. Adjusted for special effects, net income shrank by 33.3 percent to 138.8 million US dollars.
For the current fiscal year 2023/24, the management forecasts sales at the level of the previous year and a net profit between 117.0 and 122.0 million US dollars. The group also announced “two new growth opportunities”. G -III with.