G-III Apparel (GIII) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales for the first quarter of fiscal 2026 decreased 4% to $583.6 million compared to $609.7 million in the prior year's quarter[5] - Net income for the first quarter was $7.8 million, or $0.17 per diluted share, compared to $5.8 million, or $0.12 per diluted share, in the prior year's quarter[5] - Non-GAAP net income per diluted share was $0.19 for the first quarter, up from $0.12 in the same period last year, excluding one-time severance expenses of $1.0 million[6] - Net income for the second quarter is projected to be between $1.0 million and $6.0 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 $1,000,000 and $6,000,000, compared to actual net income of $24,212,000 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 $3.18 billion in fiscal 2025[13] - For the second quarter of fiscal 2026, net sales are expected to be approximately $570.0 million, down from $644.8 million in the prior year's second quarter[14] Debt and Expenses - Total debt decreased 96% to $18.7 million from $426.4 million last year, following the redemption of $400.0 million in senior secured notes[9] - The company anticipates an additional expense of approximately $135.0 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 $456.5 million compared to $479.7 million last year[7] - Adjusted EBITDA for the three months ended April 30, 2025, was $19,489,000, 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 $5,424,000 in the prior year to $461,000 in the current quarter[28] - Income tax expense increased to $3,718,000 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]