STRENGTH IN WHOLESALE BUSINESS HELPS BOOST G-III SALES IN FOURTH QUARTER
New York-based apparel maker G-III Apparel Group has reported a better-than-expected quarter driven by strength in its wholesale business.
Net sales for the full fiscal year of 2018 increased 17.6 percent to $2.81 billion from $2.39 billion in the prior year. This includes net sales of approximately $258 million related to operating its DKNY and Donna Karan (DKI) business in fiscal year 2018 compared to $28 million in net sales from the two months of the prior year that the company owned this business.
For the fourth quarter of 2018, net sales increased by 18.5 percent to $715 million from $603 million in the fourth quarter last year. This includes net sales of approximately $85 million related to operating its DKI business in the quarter compared to approximately $28 million in sales from the two months of the prior year that the company owned this business. The remainder of the year-over-year increase in net sales in the fourth quarter reflects strength in the company’s wholesale business, including new product launches. These increases were partially offset by declines in net sales of the company’s legacy retail businesses.
“We are pleased to have finished with better results than last year, particularly as a result of our power brands: Calvin Klein, Tommy Hilfiger, DKNY, Donna Karan and Karl Lagerfeld Paris,” said Morris Goldfarb, chairman and chief executive officer. “The strength of these businesses is enabling us to grow profitably despite the pressures of a persistently challenging environment.”
Goldfarb concluded, “We are focused on improving the results of our specialty retail operations. In that regard, we continue to implement our strategy to improve productivity and streamline operations. We believe that significant growth in our wholesale businesses should continue to propel us to higher sales and profits over the next several years.”
For fiscal 2019, the company is forecasting net sales of approximately $2.94 billion and net income between $97 million and $102 million.
