Q2 2025 G-III Apparel Group Ltd Earnings Call Transcript
Key Points
- G-III Apparel Group Ltd (GIII) exceeded bottom-line guidance for the second quarter and raised its full-year earnings outlook.
- The company has a diverse portfolio of over 30 globally recognized brands, including new licenses with Converse, Inc., Halston, Nautica, Champion Outwear, and BCBG.
- Net sales for the quarter were $645 million, in line with expectations, and gross margin rate expanded by 90 basis points.
- The company reported a significant decrease in inventory levels, down approximately 24% from the previous year's second quarter.
- G-III Apparel Group Ltd (GIII) has no debt and a strong financial position, with increased investments in AWWG and a solid credit profile.
- Net sales decreased slightly from $660 million in the same period last year to $645 million.
- The company is transitioning out of significant licenses with Calvin Klein and Tommy Hilfiger, which may impact future sales.
- SG&A expenses are expected to increase significantly in the third quarter due to marketing and warehouse expenses.
- The European market faced challenges, particularly for the Vilebrequin brand, due to a soft consumer environment and cooler weather conditions.
- Freight costs are expected to rise in the third quarter, and there are small delays in inventory receipts.
Good day and thank you for standing by. Welcome to the G-III Apparel Group second-quarter fiscal 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Neal Nackman, CFO. Please go ahead.
Good morning and thank you for joining us. Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees and actual results may differ materially from those expressed or implied in forward-looking statements.
Important factors that could cause actual results of operations or the financial condition of the company to differ are discussed in the documents filed by the company with the SEC. The company undertakes no duty to update any forward-looking statements.
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