G-III sales return to growth on DKNY, Lagerfeld and Vilebrequin brands (#1685297)

G-III Apparel said on Tuesday sales for the third quarter increased 1.8% to $1.09 billion, with a return to growth for the U.S. fashion giant following a 2 percent decline in the second quarter.

Despite the sales uplift, net income fell 10.1% to $114.8 million, or $2.55 per diluted share, compared to $127.6 million, or $2.74 per diluted share, in the prior year’s third quarter.

The New York-based company said the quarterly sales growth came on the back of surging organic growth across its key owned brands.

“I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over 30% organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin,” said ​​Morris Goldfarb, G-III’s chairman and chief executive officer.

“The power of our transforming business model is delivering margin expansion and bottom-line outperformance. Our teams continue to demonstrate strong execution despite a challenging consumer environment, unseasonable weather and supply chain disruptions. As we have progressed into the fourth quarter, we have experienced strengthening sell-throughs across our brands, and our inventories are well-positioned to support demand for the remaining holiday and early Spring season.”

Looking ahead, G-III said its annual sales would rise about 2% this year to $3.15 billion, down from the $3.2 billion previously projected. And adjusted earnings per share are slated to rise to just $4.10 to $4.20, up from the $3.95 to $4.04 previously forecast, despite the larger third-quarter jump.

In September, the U.S. apparel firm said it had inked a new apparel licensing agreement with Nike-owned Converse, for 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.