G-III sales down in fiscal 2024 on sluggish fourth quarter

G-III Apparel announced on Thursday net sales fell 4% to $3.1 billion for fiscal 2024, on the back of a double-digit decline in sales for the fourth quarter ending January 31.

The New York-based company said net sales for the fourth quarter decreased 10.5% to $764.8 million, while the fashion group returned to profitability in the quarter with a net income of $28.9 million, or $0.61 per diluted share, compared to a net loss of $261.1 million, or $5.54 per share, in the prior year’s quarter. 

Annual net income was $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. The prior year’s results include a $291.5 million non-cash goodwill impairment charge, net of tax, or $6.12 per share, said the company.

“This year was important for G-III as we began to execute on our path for the future, while delivering strong profitability. We delivered strong growth with DKNY, Karl Lagerfeld and Vilebrequin, increasing penetration of our higher margin, owned brands to 47% of fiscal 2024 net sales, up from 40% last year,” said Morris Goldfarb, G-III’s chairman and chief executive officer.

“Our diverse business model and disciplined operating approach has allowed us to further strengthen our credit profile as we ended the year in a net cash position, with over a billion dollars in liquidity. We began to implement our new growth initiatives with the successful launch of our Donna Karan brand and the development of three new additions to our portfolio, Nautica, Halston and Champion outerwear, all of which we have recently brought to market with first deliveries in fiscal 2025.”

Looking ahead, the company expects 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 for fiscal 2025.

This compares to net sales of $3.10 billion and net income of $176.2 million, or $3.75 per diluted share, for fiscal 2024.

In early February, G-III-owned Donna Karan New York signalled its revival, with the launch of a star-studded Spring 2024 campaign, featuring ​Cindy Crawford, Linda Evangelista, Amber Valletta, Shalom Harlow, Carolyn Murphy, Imaan Hammam, Karlie Kloss, and Liya Kebede. Also that month, the brand announced its debut into the fragrance category.