NEW YORK - G-III Apparel Group, Ltd. (NASDAQ:GIII) announced its financial results for the fourth quarter, revealing an adjusted earnings per share (EPS) of $0.76, surpassing the analyst estimate of $0.65. However, the company's revenue for the quarter fell short of expectations, coming in at $764.78 million against the consensus estimate of $813 million.
The fashion conglomerate, which owns brands such as DKNY and licenses others including Calvin Klein, experienced a 10.5% decline in net sales for the fourth quarter compared to the same period last year. Despite this, G-III Apparel's net income for the quarter was $28.9 million, or $0.61 per diluted share, a significant improvement from a net loss of $261.1 million, or -$5.54 per share, in the prior year's quarter. The previous year's loss included a substantial non-cash goodwill impairment charge.
For the full fiscal year 2024, G-III Apparel reported a decrease in net sales of 4.0% to $3.10 billion from $3.23 billion in the previous year. The company's net income for the fiscal year stood at $176.2 million, or $3.75 per diluted share, compared to a net loss of -$133.1 million, or -$2.79 per share, in the prior year. Adjusted non-GAAP net income per diluted share for the fiscal year was $4.04, an improvement from $2.85 in the previous year.
Looking ahead, G-III Apparel provided guidance for fiscal year 2025, expecting net sales of approximately $3.20 billion and net income between $167.0 million and $172.0 million, or between $3.50 and $3.60 per diluted share. This forecast falls below the analyst consensus of $3.88 EPS on $3.22 billion in revenue. The company anticipates around $60.0 million in incremental expenses, primarily associated with the launches of Donna Karan, Nautica, and Halston, with a significant portion allocated to marketing initiatives.
Morris Goldfarb, G-III’s Chairman and CEO, expressed optimism about the upcoming fiscal year, citing the launches of new initiatives and the organic growth of owned brands. Goldfarb highlighted the company's financial flexibility and the potential for strategic opportunities.
G-III Apparel's fiscal 2025 outlook includes an expected adjusted EBITDA between $290.0 million and $295.0 million, compared to $324.1 million in fiscal 2024. For the first quarter of fiscal 2025, the company forecasts net sales of approximately $615.0 million and a net loss in the range of -$5.0 million to break-even, contrasting with net income of $3.2 million, or $0.07 per diluted share, in last year’s first quarter. Adjusted non-GAAP net income for the first quarter is projected to be between -$5.0 million and break-even.
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