G-III Apparel reports strong fiscal 2016 despite warm fourth quarter

By

Obi Anyanwu

Published
Mar 22, 2016

G-III Apparel Group, Ltd. announced on Tuesday the financial results for its fourth quarter and full year fiscal 2016.

 
The company reported a 3% increase in net sales in the fourth quarter to $527.4 million from $514.3 million in the previous year’s fourth quarter. The net sales increase is attributed to the strength of the company’s wholesale businesses and G.H. Bass retail, but it was offset in part by weaker outerwear sales.
 
Net sales for the full year increased 11% to $2.34 billion from $2.12 billion in the prior year. The full year sales increase was also driven by the company’s strong wholesale business and G.H. Bass comparable store sales.

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G-III Apparel also reported GAAP net income to be $114.3 million, or $2.46 per diluted share, compared to $110.4 million, or $2.48 per diluted share in the previous year. Adjusted EBITDA also increased 13% to $210.1 million from $186.6 million.
 
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. We will be making significant investments in these brands going forward. Our organization is energized by the opportunities in front of us and excited to take advantage of our opportunities in fiscal 2017."
 
The company forecasts its fiscal 2017 net sales to be $2.56 billion and net income to be between $120 million and $125 million. The first quarter net sales are expected to reach $475 million.