G-III Apparel Q2 Earnings: Profit Beat, Cuts Inventories By 24%, Raises Annual EPS Outlook

G-III Apparel Group, LTD. GIII reported second-quarter adjusted earnings per share of 52 cents, beating the analyst consensus of 27 cents.

Quarterly revenues of $644.75 million (down 2%) missed the street view of $649.44 million.

Inventories decreased 24% to $610.5 million at the end of this year’s second quarter compared to $804.9 million in the second quarter of last year.

In the press release, G-III said it has secured a licensing agreement with Converse, Inc. to design and produce men’s and women’s apparel for global distribution, set to debut in Fall 2025.

Converse, a renowned American youth lifestyle brand, offers G-III a substantial opportunity to grow its active lifestyle segment, reaching a unique consumer base and distribution network while utilizing its current fashion expertise.

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Outlook: G-III Apparel expects FY25 net sales of $3.20 billion, slightly above the $3.187 billion estimate, and has maintained its prior guidance. The company projects adjusted EPS to be between $3.95 and $4.05, surpassing the $3.66 estimate and up from its previous outlook of $3.58 to $3.68.

Adjusted EBITDA for fiscal 2025 is expected to be between $305.0 million and $310.0 million (prior $295.0 million and $300.0 million).

For the third quarter, the company expects net sales to increase by approximately 3% to $1.10 billion (estimate $1.125 billion) and adjusted EPS of $2.20 to $2.30 (consensus $2.61).

Price Action: GIII shares are trading higher by 17.6% to $29.44 at last check Thursday.

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