G-III earnings beat on DKNY and Karl Lagerfeld growth, reveals new Converse apparel licensing deal

G-III Apparel announced on Thursday sales for the second quarter fell 2% to $644.8 million, coinciding with the news the U.S. apparel firm has inked a new apparel licensing agreement with Nike-owned Converse.

Despite the sale contraction, net income for the quarter ending July 31 grew to $24.2 million, or $0.53 per diluted share, compared to $16.4 million, or $0.35 per diluted share, in the prior year’s second quarter.

“We delivered a strong first half of the year. Our second quarter non-GAAP net income per diluted share of $0.52 exceeded our expectations, led by our owned brands. DKNY and Karl Lagerfeld collectively grew double-digits and the Donna Karan relaunch has been incredibly successful, in addition to continued solid performance with healthy sell-throughs across the rest of our business,” ​​said Morris Goldfarb, G-III’s chairman and chief executive officer.
 

The New York-based company’s new licensing deal with Converse covers the ​design and production of the streetwear brand’s men’s and women’s apparel for distribution globally. The product is expected to launch in Fall 2025.
 

“Having the most desirable brands is central to our strategy and I am pleased with the transition to our go-forward portfolio, which will continue to evolve for the future. Our new businesses are working, and I am excited to announce a licensing agreement for Converse, Inc., a globally recognized American youth lifestyle brand. This new partnership represents a significant opportunity to expand our active lifestyle category while leveraging our core capabilities to build a global apparel business. The powerful combination of our brands, our business model and diverse growth drivers, together with our agility, operating discipline and strong foundation give us confidence that our strategy will deliver long-term shareholder value.”

Looking ahead, G-III said its full-year sales are expected to increase by approximately 3% to $3.20 billion (unchanged to prior guidance), compared to net sales of $3.10 billion for fiscal 2024, while net income is expected to be between $179 million and $184 million, up from the prior guidance of $170 million and $175 million.