American clothing company G-III Apparel Group has a 16 per cent increase in net sales to $3.23 billion in fiscal 2023 (FY23), compared to the previous fiscal, driven by the success of the repositioned and relaunched DKNY brand, which grew to approximately $600 million in net sales. However, the company reported a net loss of $133.1 million, or minus $2.79 per share, compared to net income of $200.6 million, or $4.05 per diluted share, in the prior year.
G-III Apparel Group’s non-GAAP net income per diluted share was $2.85 for FY23 compared to $4.20 in FY22, the company said in a press release.
For the fourth quarter (Q4) of FY23, net sales increased 14.2 per cent to $854.4 million compared to the prior year’s quarter, but the company reported a net loss of $261.1 million, or minus $5.54 per share, compared to net income of $48.4 million, or $0.98 per diluted share, in the prior year’s quarter.
Non-GAAP net income per diluted share was $0.41 for the fourth quarter of FY23, compared to $1.06 in Q4 FY22.
G-III Apparel Group has signed a long-term license with Authentic Brands Group for the Nautica brand in North America, further expanding its brand portfolio.
Looking ahead to FY24, the company projects net sales of approximately $3.23 billion and net income between $117 million and $122 million, or between $2.40 and $2.50 per diluted share. The company anticipates non-GAAP net income for FY24 between $125.0 million and $130.0 million, or between $2.55 and $2.65 per diluted share. The company also projects adjusted EBITDA for FY24 between $248.0 million and $253.0 million.
For the first quarter of FY24, the company expects net sales of approximately $560 million compared to $688.8 million in the same period last year. The company projects a net loss for the first quarter of FY24 in the range of $10 million and $5.0 million, or minus $0.20 and minus $0.10 per share, compared to net income of $30.6 million, or $0.62 per diluted share, in Q1 FY23. The company also anticipates a non-GAAP net loss for Q1 FY24 between $7 million and $2 million, or between minus $0.15 and minus $0.05 per diluted share, compared to non-GAAP net income of $35.2 million, or $0.72 per diluted share, in Q1 FY23, the release added.
“In fiscal 2023, we made significant progress on our strategic priorities as we leveraged G-III’s expertise and agility to capture a number of opportunities, despite a challenging environment. We successfully shifted our category focus based on market demand and expanded our brand ownership and global reach with our Karl Lagerfeld acquisition. For fiscal 2023, we registered net sales of $3.23 billion, up 17 per cent to the prior year and we reported non-GAAP net income per diluted share of $2.85,” said Morris Goldfarb, G-III’s chairman and CEO.