G-III Apparel Group, a leading US-based apparel company, has reported a 11.9 per cent decrease in net sales to $606.6 million for the first quarter (Q1) of fiscal 2024 (FY24), down from $688.8 million in the same period last year. The company's net income for Q1 FY24 also dropped, standing at $3.2 million, or $0.07 per diluted share, compared to $30.6 million, or $0.62 per diluted share, in the prior year’s quarter.

The non-GAAP net income per diluted share was recorded at $0.13 for Q1 of this year, compared to $0.72 in the corresponding period last year, the company said in a press release.

“For the first quarter of fiscal 2024, we exceeded both our top and bottom-line guidance with non-GAAP net income per diluted share of $0.13, exceeding the high end of our guidance. We made progress rightsizing our inventory position, which sequentially decreased by $80 million, while our gross margins were significantly better than last year’s first quarter. I am proud of how our team successfully navigated what remains a challenging environment,” said Morris Goldfarb, G-III’s chairman and chief executive officer.

Looking ahead, for fiscal 2024, G-III Apparel is forecasting net sales of approximately $3.29 billion and net income between $125 million and $130 million, equating to $2.65 and $2.75 per diluted share respectively. This forecast shows a significant improvement from fiscal 2023, where the company reported net sales of $3.23 billion and a net loss of $133.1 million, or $2.79 per share.

On a non-GAAP basis, the company is projecting net income for fiscal 2024 between $132 million and $137 million, translating to between $2.80 and $2.90 per diluted share. This compares to a non-GAAP net income of $138.8 million, or $2.85 per diluted share, for fiscal 2023.

The company is also estimating full-year adjusted EBITDA for fiscal 2024 to be between $267 million and $272 million, slightly up from the adjusted EBITDA of $266.1 million reported in fiscal 2023.

For the second quarter (Q2) of FY24, G-III Apparel is expecting net sales of approximately $595 million, down from $605.2 million in the same period last year. The company is anticipating a net loss for Q2 FY24 in the range of $5 million to break even, or between $0.10 and $0.00 per share. This compares to a net income of $36.3 million, or $0.74 per diluted share, in last year’s second quarter.

The company expects non-GAAP results for Q2 FY24 between a net loss of $3 million and net income of $2 million, or between minus $0.06 and $0.04 per diluted share. This marks a decrease from the non-GAAP net income of $19 million, or $0.39 per diluted share, reported in the same quarter last year.

Fibre2Fashion News Desk (DP)

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