G-III Apparel Group Reports $3.18 Billion in Net Sales for Fiscal Year 2025

G-III Apparel Group, Ltd. reported a net sales increase to $3.18 billion for the fiscal year ending January 31, 2025, up from $3.10 billion in the previous year. The company's gross profit rose to $1.30 billion, representing 40.8% of net sales, compared to 40.1% in fiscal 2024. This growth was primarily driven by a $254.4 million increase in sales from its owned brands, including DKNY, Donna Karan, and Karl Lagerfeld, which offset a decline in sales from Calvin Klein and Tommy Hilfiger licensed products. The company also achieved a net income of $193.6 million, or $4.35 per share, compared to $176.2 million, or $3.84 per share, in the prior year.

In fiscal 2025, G-III made significant strategic moves, including the acquisition of an 18.7% stake in AWWG, a global fashion group, for approximately $53.6 million. This investment is expected to enhance G-III's international growth by leveraging AWWG's established infrastructure in Europe. Additionally, the company launched several new licensed brands, including Nautica, Halston, and Champion, and signed new agreements for Converse and BCBG, which are set to launch in Fall 2025. These initiatives are part of G-III's strategy to diversify its product offerings and expand its market presence.

Operationally, G-III's retail segment saw an increase in sales to $166.5 million, up from $148.4 million, despite a reduction in the number of retail stores from 53 to 49. The company reported strong double-digit growth in comparable store sales for its DKNY and Karl Lagerfeld Paris brands. As of January 31, 2025, G-III employed approximately 3,500 full-time and 1,100 part-time employees, reflecting a stable workforce as the company continues to focus on enhancing its operational capabilities.

The company also faced challenges, including a material weakness in internal controls related to information technology general controls, which was identified within its Karl Lagerfeld subsidiary. This weakness did not result in any material misstatements in the financial statements, but it highlights the need for ongoing improvements in internal controls. G-III's management is actively working on remediation plans to address these deficiencies.

Looking ahead, G-III Apparel Group anticipates continued growth driven by its owned brands and strategic partnerships. The company aims to mitigate the impact of expiring licenses for Calvin Klein and Tommy Hilfiger by expanding its portfolio of owned and licensed brands. G-III's management remains optimistic about leveraging its investments and operational strategies to enhance profitability and market share in the competitive apparel industry.