G-III Apparel sales and earnings down in Q1, announces Halston licensing deal
G-III Apparel announced on Tuesday sales for the first quarter fell 11.9% to $606.6 million, coinciding with a dive in net earning for the three months. The firm also revealed a new licensing deal with the Halston brand.
The New York-based company said net income for the first quarter fell to $3.2 million, or $0.07 per diluted share, compared to $30.6 million, or $0.62 per diluted share, in the prior-year’s quarter.
The owner of Donna Karan, DKNY and Karl Lagerfeld brands said it has also signed a global twenty-five year master license agreement with Xcel Brands to design and produce all categories of men’s and women’s product for the Halston brand.
The agreement provides for an initial term of five years, followed by a twenty-year period, as well as a purchase option at the end of the twenty-five year term. The product will be distributed globally through "better" department stores and digital channels, said G-III, adding it believes that "significant opportunity exists in the better women’s apparel space," with the first Halston drop landing fall 2024.
"This agreement represents our third substantial growth opportunity announced this year alongside the re-positioning and global expansion of Donna Karan and a long-term license for Nautica in North America," said Morris Goldfarb, G-III’s chairman and chief executive officer. "Development of our Donna Karan and Nautica initiatives is well underway.”
Looking ahead, G-III lifted its guidance for the fiscal year ending January 31, 2024, anticipating net sales of approximately $3.29 billion and net income between $125.0 million and $130.0 million, or between $2.65 and $2.75 per diluted share.
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