- Prachi Singh |
For the quarter ended July 31, 2017, G-III reported that net sales increased by 21.6 percent to 538 million dollars, up from 442.3 million dollars in the year-ago period. The company reported a net loss for the second quarter of 8.6 million dollars or 0.18 dollar per share, compared to 1.3 million dollars or 0.03 dollar per share, in the year ago period.
Commenting on the company’s second quarter trading, Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said in a media release: "The brand portfolio we have created through acquisition and partnership is enabling us to perform well despite significant headwinds in the marketplace. In our own retail operations, we expect to improve performance through store rationalization, better merchandising and expense reductions. We believe we can mitigate the pressure on our retail results while reaping the benefits of an exciting new phase of wholesale growth as we look forward to a successful second half of the year."
The increase in net sales, the company said, includes approximately 45 million dollars of net sales of DKNY and Donna Karan products. On an adjusted basis, non-GAAP net loss per share for the second quarter of fiscal 2018 was 0.15 dollar compared to 0.01 dollar in the prior year's comparable period.
G-III updates FY18 outlook
The company today increased its prior guidance for the full fiscal year ending January 31, 2018. The company is now forecasting revenues of approximately 2.80 billion dollars and net income between 56 million dollars and 60 million dollars or between 1.11 dollars and 1.21 dollars per diluted share. The company previously forecasted net sales of 2.76 billion dollars and net income between 52 million dollars and 57 million dollars or between 1.04 dollars and 1.14 dollars per diluted share.
On an adjusted basis, excluding transitional and imputed interest expenses, the company now anticipates non-GAAP net income of between approximately 64 million dollars and 69 million dollars or between 1.28 dollars and 1.38 dollars per diluted share. The Company's previous forecast was for non-GAAP net income of between approximately 60 and 65 million dollars or between 1.20 dollars and 1.30 dollars per diluted share.
The company is now forecasting projected full-year adjusted EBITDA for fiscal 2018 between 180 million dollars and 188 million dollars compared to adjusted EBITDA of 148.1 million dollars in fiscal 2017 and compared to its previous forecast of adjusted EBITDA of between 178 million dollars and 186 million dollars.
For the third fiscal quarter ending October 31, 2017, the company is forecasting net sales of approximately 1.03 billion dollars and net income between 69 million dollars and 73 million dollars or between 1.36 dollars and 1.46 dollars per diluted share. This forecast compares to net sales of 883 million dollars and net income of 70.6 million dollars or 1.50 dollars per diluted share, reported for the third quarter of fiscal 2017.