G-III Apparel Group (GIII) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales reached $610 million, driven by strong double-digit growth in DKNY and Karl Lagerfeld and a highly successful Donna Karan relaunch, with net income and EPS exceeding guidance.

• Strategic partnership and investment in AWWG to accelerate European and Indian expansion, with an initial 12% stake and board representation.

• Transition away from PVH brands continues, with go-forward brands expected to represent 70% of FY2025 net sales.

• Inventory declined 24% year-over-year, and liquidity remains robust at approximately $1 billion.

• Major marketing campaigns and digital investments supported brand relaunches and growth.

Financial highlights

• Q1 FY2025 net sales: $610 million (up from $607 million); wholesale $598 million, retail $31 million.

• Gross margin rate expanded 130 bps to 42.5%; wholesale margin 40.9%, retail 47%.

• Non-GAAP net income: $5.8 million ($0.12 per diluted share) vs. $6 million ($0.13) last year.

• Inventory decreased to $480 million from $630 million year-over-year.

• Ended quarter with net cash of $80 million, a swing from $253 million net debt last year.

Outlook and guidance

• FY2025 net sales guidance reaffirmed at $3.2 billion, up from $3.10 billion in FY2024.

• Non-GAAP net income guidance raised to $170–$175 million ($3.58–$3.68 per diluted share), down from $190 million ($4.04) in FY2024.

• Adjusted EBITDA expected at $295–$300 million vs. $324 million in FY2024, reflecting $60 million in incremental expenses.

• Q2 FY2025 net sales expected at $650 million (vs. $660 million last year); non-GAAP EPS $0.22–$0.32.

• Capital expenditures planned at $50 million, mainly for shop-in-shops and technology.