G-III Apparel Group, Ltd. (NASDAQ: GIII) Q1 results for 2018 reported that their net sales increased 16% or $529 Million compared to $457.4 million YOY. G-III also reported a net loss of $10.4 Million which translates to $.21 loss per share, in comparison to net income of $2.7 Million $.06 per diluted share for Q1 2017. Also worth noting that G-III acquired Donna Karen International Inc. toward the end of 2016 which reduced the companies’ working capital from $634M at April 30th of 2016 to $602M for April 30, 2017. Cash and Cash equivalents were also reduced from $95.4M in 2016 to $67.1M in 2017, a difference $28.3M.
The Chairman and Chief Executive Officer of G-III, Morris Goldfarb stated, “Our wholesale business continues its strong growth and demonstrates the power of our brand portfolio to transcend a difficult market environment and retain a leadership position as one of the most high-performing vendors for our retail customers. Offsetting our strong wholesale performance were the previously fore-casted losses with respect to our own retail stores and the development of the Donna Karan business... We are reducing operating costs in our retail business, closing and re-purposing stores and enhancing our store product offerings, all which are intended to help us significantly reduce the losses in our retail operations…Overall, we believe that we are in a renewed position to drive higher levels of growth, investment returns and value to customers, consumers and shareholders.”
About G-III Apparel Group Ltd.
G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women's suits and women's performance wear, as well as women's handbags, footwear, small leather goods, cold weather accessories and luggage. The Company's owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.