G-III Apparel Group, LTD. (GIII) reported strong second-quarter results, exceeding analysts’ expectations and signaling a positive outlook for the company. The company’s adjusted earnings per share reached 52 cents, significantly higher than the anticipated 27 cents. While quarterly revenues of $644.75 million fell slightly by 2% compared to the previous year, they missed the analyst estimate of $649.44 million.
G-III’s inventory levels saw a substantial decrease of 24% to $610.5 million at the end of the second quarter, compared to $804.9 million in the same period last year. This reduction in inventory suggests effective management of supply chain and operational efficiency.
In a significant development, G-III announced a new licensing agreement with Converse, Inc. This partnership will see G-III design and produce men’s and women’s apparel for Converse, distributing them globally starting Fall 2025. Converse, a renowned American youth lifestyle brand, will provide G-III access to a unique consumer base and distribution network, allowing them to expand their presence in the active lifestyle segment. This agreement leverages G-III’s fashion expertise and positions them for growth in a thriving market.
G-III’s optimistic outlook for the future is reflected in its financial projections. The company expects FY25 net sales to reach $3.20 billion, slightly above the $3.187 billion estimate. Adjusted EPS is projected to be between $3.95 and $4.05, surpassing the $3.66 estimate and exceeding the company’s previous guidance. Adjusted EBITDA for fiscal 2025 is anticipated to be between $305.0 million and $310.0 million.
For the third quarter, G-III forecasts net sales growth of approximately 3% to $1.10 billion, although this falls slightly short of the $1.125 billion estimate. Adjusted EPS is expected to be between $2.20 and $2.30, below the consensus estimate of $2.61.
Investors responded positively to G-III’s strong performance and strategic partnership. GIII shares surged by 17.6% to $29.44 at the close of trading on Thursday. This upward trend reflects investor confidence in the company’s ability to capitalize on its growth opportunities and deliver continued value.
