G-III Apparel net sales in fiscal 2025 (FY25) was $3.18bn, marking a 2.7% rise from the previous year’s figure of $3.09bn, driven by over 20% growth of its key owned brands Karl Lagerfeld, DKNY, Donna Karan and Vilebrequin.
Calvin Klein and Tommy Hilfiger brands currently constitute approximately -34% of its overall revenue. This marks a decrease from a previous level of more than 50% two years prior.
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G-III chairman and chief executive officer Morris Goldfarb said: “Fiscal 2025 was an incredible year, marked by robust top and bottom-line growth. Our world-class teams demonstrated strong execution of our strategic priorities, including bringing four new brands to market and driving outsized growth of our owned brands. We delivered record non-GAAP earnings per diluted share of $4.42, a 9% increase over last year and above our expectations, while also expanding gross margins.”
G-III Apparel key operational performance metrics in FY25
The company’s profitability saw an uptick in FY25, with net income climbing to $193.56m, or $4.20 per diluted share, up from the preceding year’s $176.16m, or $3.75 per diluted share.
Gross profits of G-III increased to $1.29bn during the fiscal year from $1.24bn in fiscal 2024. The company also managed to reduce its inventories by 8%, bringing them down to $478.1m from the previous year’s $520.4m.
A significant reduction was seen in total debt, which plummeted by 99% to just $6.2m in FY25, from $417.8m in the prior year.
G-III Apparel Q4 highlights
G-III Apparel’s net sales saw a considerable jump of 9.8%, reaching $839.53m compared to the same quarter in the previous year at $764.78m.
Net income attributable to G-III for this quarter was reported at $48.78m, or $1.07 per diluted share, a notable increase from the prior year’s fourth quarter figures of $28.85m or $0.61 per diluted share.
The company’s non-GAAP adjusted net income per diluted share for the fourth quarter was higher at $1.27 compared to $0.76 in the corresponding period last year, while gross profit rose to $331.62m from $281.98m.
G-III Apparel outlook for first and fiscal 2026
G-III Apparel anticipates fiscal 2026 net sales of approximately $3.14bn, which is slightly lower than fiscal 2025’s performance.
Goldfarb added: “We are confident in the power of our brands and business model. We believe the momentum of our key owned brands DKNY, Donna Karan, Karl Lagerfeld, and Vilebrequin will continue to deliver double-digit sales increases. This growth will help offset the reduced sales of our Calvin Klein and Tommy Hilfiger businesses as we transition out of those licences.
“Our strong financial position, together with our proven track record, provides us with ample flexibility to invest in our future. G-III is undergoing an incredible transformation, and we are committed to delivering long-term growth and creating shareholder value.”
The retailer expects net income between $192m and $197m or between $4.15 and $4.25 per diluted share.
For the first quarter of fiscal 2026, G-III Apparel expects net sales to be around $580m, a decline from last year’s first-quarter sales of $609.7m.
The company projected net income ranging from $2m to $7m, which represents earnings per share between $0.05 and $0.15.
