G-III's annual revenue declines 35%
G-III Apparel Group, Ltd., the New York-based owner of brands including DKNY and Donna Karan, reported net sales of $2.06 billion for the fiscal year ended January 31, 2021, on Thursday, a decrease of 35.0% compared to $3.16 billion in the previous year.
The company’s annual net income was $23.5 million, or $0.48 per diluted share, compared to $143.8 million, or $2.94 per diluted share, in the previous year.
“Our entrepreneurial culture, with a merchant led focus, proved to be invaluable as we responded to the casual trend by designing the right merchandise for our retail partners,” said G-III chairman and CEO Morris Goldfarb in a release, referencing the increased popularity of laid-back, comfy clothing that has resulted from the Covid-19 pandemic.
“We ended fiscal year 2021 with continued improvement in our wholesale operations and completed the restructuring of our retail operations,” added the CEO.
The restructuring of the company’s retail operations included the permanent closure of its Wilsons Leather and G.H. Bass stores, affecting a total of around 200 locations.
In the fourth quarter, the group posted net sales of $526.2 million, down 30.3% from $754.6 million in the same period in the previous year. Quarterly net income was $14.6 million, or $0.30 per diluted share, compared to $25.3 million, or $0.52 per diluted share, in the prior-year period.
Looking to the future, G-III expects its net sales to total around $460.0 million in the first quarter, compared to $405.1 million in the prior-year period. Net income is predicted to be between $0.05 and $0.15 per diluted share, compared to a loss of $0.33 per share.
“As the year progresses, we believe there will be an increasing desire for dressier apparel and accessories,” explained Goldfarb. “We are working closely with our retail and vendor partners to be in a position to bring these products to market in a timely manner.”
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