G-III Apparel Group (GIII) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales reached $610 million, up from $606.6 million, driven by strong DKNY and Karl Lagerfeld growth and a highly successful Donna Karan relaunch, partially offset by declines in Calvin Klein and Tommy Hilfiger licensed products.

• Net income attributable to G-III was $5.8 million, up from $3.2 million in the prior year quarter, with EPS exceeding guidance.

• Strategic investment in AWWG to accelerate European and Indian expansion, with an initial 12% stake and board representation.

• Inventory decreased 24% year-over-year to $480 million, and liquidity remains robust at approximately $1 billion.

• Amended and upsized revolving credit facility to $700 million, extending maturity to 2029.

Financial highlights

• Q1 net sales: $610 million vs. $607 million last year; wholesale segment $598 million, retail $31 million.

• Gross margin rate expanded 130 bps to 42.5%; wholesale gross margin 40.9%, retail 47%.

• Non-GAAP net income: $5.8 million ($0.12 per diluted share) vs. $6 million ($0.13) last year.

• Cash and cash equivalents stood at $508.4 million as of April 30, 2024, with over $480 million available under the revolving credit facility.

• Ended quarter with net cash of $80 million, a swing from $253 million net debt last year.

Outlook and guidance

• FY2025 net sales guidance reaffirmed at ~$3.2 billion, up 3% year-over-year, with go-forward brands expected to represent 70% of total sales.

• Non-GAAP net income guidance raised to $170–$175 million ($3.58–$3.68 per diluted share), down from $190 million ($4.04) in FY2024.

• Adjusted EBITDA expected at $295–$300 million vs. $324 million in FY2024.

• Q2 FY2025 net sales expected at $650 million (vs. $660 million last year); non-GAAP EPS $0.22–$0.32.

• Fiscal 2025 guidance includes $60 million in incremental expenses, mainly for brand launches and marketing.