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G-III Apparel (GIII) - 2026 Q1 - Quarterly Results
GIIIG-III Apparel (GIII)2025-06-06 11:34

Financial Performance - Net sales for the first quarter of fiscal 2026 decreased 4% to 583.6millioncomparedto583.6 million compared to 609.7 million in the prior year's quarter[5] - Net income for the first quarter was 7.8million,or7.8 million, or 0.17 per diluted share, compared to 5.8million,or5.8 million, or 0.12 per diluted share, in the prior year's quarter[5] - Non-GAAP net income per diluted share was 0.19forthefirstquarter,upfrom0.19 for the first quarter, up from 0.12 in the same period last year, excluding one-time severance expenses of 1.0million[6]−Netincomeforthesecondquarterisprojectedtobebetween1.0 million[6] - Net income for the second quarter is projected to be between 1.0 million and 6.0million,significantlylowerthan6.0 million, significantly lower than 24.2 million in the prior year's second quarter[15] - Forecasted net income for the three months ending July 31, 2025, is projected to be between 1,000,000and1,000,000 and 6,000,000, compared to actual net income of 24,212,000forthesameperiodin2024[30]GuidanceandProjections−Thecompanyreaffirmeditsnetsalesguidanceforfiscal2026,expectingapproximately24,212,000 for the same period in 2024[30] Guidance and Projections - The company reaffirmed its net sales guidance for fiscal 2026, expecting approximately 3.14 billion in net sales, down from 3.18billioninfiscal2025[13]−Forthesecondquarteroffiscal2026,netsalesareexpectedtobeapproximately3.18 billion in fiscal 2025[13] - For the second quarter of fiscal 2026, net sales are expected to be approximately 570.0 million, down from 644.8millionintheprioryear′ssecondquarter[14]DebtandExpenses−Totaldebtdecreased96644.8 million in the prior year's second quarter[14] Debt and Expenses - Total debt decreased 96% to 18.7 million from 426.4millionlastyear,followingtheredemptionof426.4 million last year, following the redemption of 400.0 million in senior secured notes[9] - The company anticipates an additional expense of approximately 135.0millionduetotariffs,primarilyimpactingthesecondhalfofthefiscalyear[11]−Thecompanyincurredone−timewarehouse−relatedseveranceexpensesof135.0 million due to tariffs, primarily impacting the second half of the fiscal year[11] - The company incurred one-time warehouse-related severance expenses of 978,000 in the current quarter[28] Inventory and Financial Metrics - Inventories decreased 5% to 456.5millioncomparedto456.5 million compared to 479.7 million last year[7] - Adjusted EBITDA for the three months ended April 30, 2025, was 19,489,000,downfrom19,489,000, down from 22,299,000 in the prior year, reflecting a decrease of 12.2%[28] - The company reported a significant reduction in interest and financing charges, net, from 5,424,000intheprioryearto5,424,000 in the prior year to 461,000 in the current quarter[28] - Income tax expense increased to 3,718,000forthethreemonthsendedApril30,2025,comparedto3,718,000 for the three months ended April 30, 2025, compared to 2,305,000 in the same period last year, marking a rise of 61.5%[28] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures to provide a clearer picture of operational performance, excluding items not indicative of core business results[30] - Management believes that the non-GAAP measures are useful for investors to assess performance across historical periods and compare with competitors[30] Share Repurchases - Share repurchases totaled $19.7 million for 807,437 shares in the first quarter[10] Strategic Focus - The company is focused on strategic adjustments and operational efficiency to enhance profitability moving forward[28]