G-III Apparel Q2 sales exceed expectations, inks new licensing deal for Champion

G-III Apparel announced on Thursday revenues for the second quarter increased 9% to $659.8 million, coinciding with the news that the U.S. firm has inked a licensing partnership with HanesBrands.

The owner of Donna Karan, Sonia Rykiel, and Karl Lagerfeld brands said net income for the three months ending July 31 fell to ​$16.4 million, or $0.35 per diluted share, compared to $36.3 million, or $0.74 per diluted share, in the prior year’s quarter. However, both quarterly sales and earnings did beat the New York-based firm’s prior guidance.

“For the second quarter of fiscal 2024, we once again beat both our top and bottom line guidance and made progress on our strategic priorities,” ​said ​Morris Goldfarb, G-III’s chairman and chief executive Officer.

For the first half of the year, GIII registered sales of $1.27 billion, compared to $1.29 billion, in the prior-year period.

“Our first half performance further validates G-III’s ability to successfully navigate what remains a dynamic environment. I am immensely proud of our team’s consistently strong execution,” added Goldfarb.

Coinciding with the earnings update, G-III said it has inked a partnership with fellow U.S. apparel company HanesBrands to produce outerwear for Champion. The multi-year agreement is for the design, production and distribution of outerwear for the Champion and C9 Champion brands in North America, according to a press release.

“We are pleased to announce our newest license agreement with HanesBrands to produce an outerwear collection for the Champion brand,” said Goldfarb.

“Champion is a well-recognized iconic American brand. Our collections will feature quality heritage pieces that complement and enhance Champion’s principles of self-expression. This license aligns with G-III’s core competencies in outerwear and will fit seamlessly into our well-developed outerwear divisions.”

Looking ahead, the company raised its guidance for the fiscal year ending January 31, 2024, adding it now expects net sales of approximately $3.3 billion and net income between $145 million and $150 million, or between $3.05 and $3.15 per diluted share.

“G-III closed out a strong first half of our year, giving us confidence to once again raise our outlook,” concluded Goldfarb. “Our balance sheet provides us with financial flexibility to invest in our business and consider additional opportunities. Agility is at the heart of everything we do at G-III and I am confident that we will continue to evolve, regardless of external factors. We will continue to drive our business forward and expect to deliver strong results for our shareholders.”