The gross profit of the company stood at $432.1 million, slightly down from $433.4 million in Q3 FY24. Selling, general, and administrative (SG&A) expenses were $259.2 million, up from $236.3 million in Q3 FY24. The operating profit was $166.3 million, compared to $190.3 million in the prior fiscal, and net income attributable to G-III Apparel Group was $114.8 million, down from $127.6 million in Q3 FY24. The results for GAAP and non-GAAP net income per diluted share exceed guidance for Q3.
G-III Apparel has reported Q3 FY25 net sales of $1.09 billion, up 1.8 per cent YoY, with net income of $114.8 million ($2.55 EPS).
Nine-month sales rose slightly to $2.34 billion YoY, with net income of $144.8 million.
FY25 guidance was raised, expecting 2 per cent sales growth to $3.15 billion and EPS of $4.08-$4.18.
Inventories fell 10 per cent, and debt dropped 52 per cent.
“I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over 30 per cent organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin,” said Morris Goldfarb, G-III’s chairman and chief executive officer (CEO). “The power of our transforming business model is delivering margin expansion and bottom-line outperformance. Our teams continue to demonstrate strong execution despite a challenging consumer environment, unseasonable weather and supply chain disruptions.”
“As we have progressed into the fourth quarter, we have experienced strengthening sell-throughs across our brands, and our inventories are well-positioned to support demand for the remaining holiday and early spring season. Looking at the remainder of the year, given our significant third quarter earnings outperformance, we are once again raising our earnings per diluted share guidance for fiscal 2025. Our proven track record of success and our strong balance sheet give us ample flexibility to invest in long-term opportunities to expand our business, while delivering on our commitment to drive long-term sustainable growth and shareholder value,” added Goldfarb.
Inventories of the company decreased 10 per cent YoY to $532.5 million at the end of Q3 of fiscal 2025 compared to $591.5 million in Q3 of last fiscal. Total debt decreased 52 per cent to $224.2 million at the end of Q3 FY25 compared to $461.9 million in Q3 FY24.
Nine-month (9M) FY25 results
The net sales of the company were $2.34 billion, marginally up from $2.33 billion in the prior fiscal, and the gross profit stood at $966.9 million, compared to $959.9 million during the same period of the last fiscal. SG&A expenses were $724.9 million, up from $703.5 million. The operating profit for this 9M was $221.3 million, compared to $237.0 million in the prior fiscal, and net income attributable to the company was $144.8 million, slightly down from $147.3 million in the prior fiscal. The diluted EPS was $3.17, up from $3.13 in the prior fiscal. The income tax expense was $46.2 million for Q3 and $57.9 million for the 9M period.
Outlook for FY25
For the full fiscal 2025, G-III Apparel expects net sales to increase by 2 per cent to reach $3.15 billion (prior approximately $3.20 billion), compared to net sales of $3.10 billion for FY24. Net income is expected to be between $185.0 million and $190.0 million (prior $179.0 million and $184.0 million), or diluted EPS between $4.08 and $4.18 (prior $3.94 and $4.04). This compares to net income of $176.2 million, or $3.75 per diluted share for FY24.
Non-GAAP net income for FY25 is expected to be between $186.0 million and $191.0 million (prior $180.0 and $185.0 million), or diluted EPS between $4.10 and $4.20 (prior $3.95 and $4.05). This compares to non-GAAP net income of $189.8 million, or diluted earnings per share of $4.04 for FY24.
Adjusted EBITDA for FY25 is expected to be between $309.0 million and $314.0 million (prior $305.0 million and $310.0 million) compared to adjusted EBITDA of $324.1 million in FY24.
Fibre2Fashion News Desk (SG)
