- G-III Apparel Group Ltd GIII reported a Q1 FY24 sales decline of 11.9% Y/Y to $606.6 million, beating the consensus of $594.78 million.
- The gross profit rose to $249.8 million from $246.0 million a year ago.
- Operating income for the quarter fell to $15.3 million from $54.5 million in the prior year.
- Adjusted EPS of $0.13 surpassed the analyst consensus of an EPS loss of $(0.10).
- The company held $289.7 million in cash and cash equivalents as of April 30, 2023.
- Outlook: GIII raised FY24 sales to about $3.29 billion (prior view $3.23 billion), vs. the consensus of $3.19 billion. It increased FY24 adjusted EPS to $2.80-$2.90 range (previous view: $2.55-$2.65) versus the consensus of $2.54.
- The company expects Q2 net sales of approximately $595.0 million (consensus: $584.37 million) and adjusted EPS of $(0.06)-$0.04 (consensus: $0.31).
- "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," stated Morris Goldfarb, G-III's Chairman and CEO.
- Along with the earnings release, GIII disclosed a 25-year master licensing deal with Xcel Brands, Inc. XELB for designing and producing products for the Halston business and its brands.
- Also Read: Bridging The Gap To Profitability: Analyst Outlines Challenges And Opportunities For GIII Apparel In FY24
- Price Action: GIII shares are trading higher by 20.99% at $19.83 on the last check Tuesday.
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