- Prachi Singh |
Net sales for the fiscal year ended January 31, 2016 at G-III Apparel Group were up 11 percent to 2.34 billion dollars from 2.12 billion dollars in the prior year. The company said that the full year sales growth was driven by strong performances from many of the company's wholesale businesses, as well as by growth in G.H. Bass & Co comparable store sales.
Commenting on the results, Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, "Fiscal 2016 was a very strong year for us, although we were disappointed by our wholesale and retail outerwear business, which was heavily impacted by the warmest winter ever recorded. That said, we had excellent performances from our non-outerwear Calvin Klein businesses, as well as our dress and team sports businesses. We have significantly expanded our relationship with the Tommy Hilfiger brand and increased our financial investment and partnership with the Karl Lagerfeld brand.”
Detailed summary of fiscal and Q4 results
Non-GAAP net income per diluted share for the full year increased 8 percent to 2.44 dollars per share from 2.26 dollars in the prior fiscal year. The company reported GAAP net income for the fiscal year of 114.3 million dollars, or 2.46 dollars per diluted share, compared to 110.4 million dollars, or 2.48 dollars per diluted share, in the prior year. Adjusted EBITDA increased by 13 percent to 210.1 million dollars from 186.6 million dollars in the prior fiscal year.
For the fourth quarter ended January 31, 2016, G-III reported that net sales increased by 3 percent to 527.4 million dollars from 514.3 million dollars in the fourth quarter last year and that net income per diluted share was 0.17 dollar compared to 0.48 dollar in the fourth quarter last year. The increase in net sales was the result of strength in many of the company's wholesale businesses and G.H. Bass retail, offset in part, by lower sales and higher promotion costs with respect to outerwear in our wholesale and Wilsons Leather retail businesses. The company said that weaker outerwear sales in the fourth quarter are the primary reason that our sales and profits for the full year were lower than previously forecasted.
Company announces positive outlook
G-III Apparel Group is forecasting net sales of approximately 2.56 billion dollars and net income between 120 million dollars and 125 million dollars, or between 2.55 dollars and 2.65 dollars per diluted share. The company is also projecting EBITDA for fiscal 2017 to be between 228 million dollars and 236 million dollars.
For the first fiscal quarter ending April 30, 2016, the company is forecasting net sales of approximately 475 million dollars and net income between 0.1 million dollars and 2.4 million dollars, or between 0.00 dollar and 0.05 dollar per diluted share. This compares to net sales of 433 million dollars and net income of 6.8 million dollars, or 0.15 dollar per diluted share, reported in the first quarter of fiscal 2016.