US clothing firm G-III Apparel's Q2 sales exceed expectations

03 Sep '21

2 min read

Pic: G-III Apparel Group

Second quarter (Q2) sales at G-III Apparel Group, a US-based designer of apparel under owned label brands, exceeded expectations with 62.5 per cent growth to $483.1 million compared to the sales of $297.2 million in the corresponding period of previous fiscal. Net income for the quarter ended on July 31, 2021, rose to $19.1 million against loss of $14.9 million in Q2 FY21.

Based on strong performance in the first half, the company has raised its guidance for the full fiscal 2022 and expects sales to reach approximately $2.7 billion while net income between $155.0 million and $165.0 million.

“We delivered outstanding second quarter results that exceeded our guidance for both the top and bottom lines. Throughout the pandemic, we navigated through the challenges as our world class teams have remained focused on delivering positive results,” Morris Goldfarb, G-III’s chairman and chief executive officer, said in a press release.

“We are encouraged by the strong consumer demand that we are seeing for apparel and accessories. Although some uncertainties remain, we feel good about our business, giving us the confidence to raise our guidance,” Goldfarb added.

Gross profit for Q2 FY22 rose to $192.8 million ($134.7 million), while selling, general and administrative expenses were $146.8 million ($122.1 million). The American clothing company’s operating profit for the three-month period escalated to $38.9 million (operating loss: $11.4 million).

“The strength in our casual categories continues. We are also pleased to see increased demand for broader lifestyle categories, including dresses and career wear. G-III’s diversified product categories ranging across our globally recognised power brands, DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris, position us well to meet the increasing demand for our products,” Goldfarb concluded in the release.

Fibre2Fashion News Desk (JL)

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