NASDAQ$GIII

G-III Apparel Group Ltd · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

G-III Apparel Group's Q4 2023 results were announced, revealing increased net sales but a net loss due to a non-cash goodwill impairment charge.

G-III Apparel Group reported a 14.2% increase in net sales for the fourth quarter, reaching $854.4 million. However, the company experienced a net loss of $(261.1) million, or $(5.54) per share, primarily due to a $291.5 million non-cash goodwill impairment charge. Non-GAAP net income per diluted share was $0.41, compared to $1.06 in the same period last year. The company announced the re-positioning and expansion of Donna Karan and a new long-term license for Nautica.

  • Net sales increased by 14.2% to $854.4 million compared to the prior year's quarter.
  • The company reported a net loss of $(261.1) million, or $(5.54) per share, compared to a net income of $48.4 million, or $0.98 per diluted share, in the prior year's quarter.
  • Non-GAAP net income per diluted share was $0.41, compared to $1.06 in the same period last year.
  • G-III announced the re-positioning and expansion of Donna Karan and a new long-term license for Nautica.

Headline financials

Total Revenue

$854M

Previous: $748M+14.2%
EPS (adj)

$0.41

Previous: $0.98-58.2%
Net Income

-$262M

Previous: $48.1M-644.0%
Operating Income

-$292M

Previous: $67.2M-535.2%
Gross Profit

$282M

Previous: $252M+11.6%
Cash & Equivalents

$192M

Previous: $466M-58.9%
Total Assets

$2.71B

Previous: $2.74B-1.1%
Stock-Based Comp

$3.56M

Previous: $5.65M-37.0%

Revenue & EPS history

G-III Apparel · Revenue · Quarterly

$854M

Q4 2023+14.2%vs Q4 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

The Company today issued guidance for the fiscal year ending January 31, 2024. The Company’s fiscal year 2024 guidance anticipates the expected impact from current levels of inflationary pressure on consumers and on the Company’s operations, as well as incremental costs associated with managing higher levels of inventory.

Tailwinds

  • G-III will produce across a number of categories, starting with jeans, which also includes a full range of corresponding product, and then expanding in a phased approach into additional categories including sportswear, suit separates and dresses.
  • The new five-year license agreement, effective beginning in January 2024, includes three extensions, for five years each.
  • First deliveries are expected to hit the floor in January 2024.
  • The product will be distributed in better department stores, digital channels and Nautica stores and website in North America and franchised stores globally.
  • G-III believes that significant opportunity exists in the better women’s apparel space in categories where G-III has strong expertise.

Headwinds

  • The Company’s fiscal year 2024 guidance anticipates the expected impact from current levels of inflationary pressure on consumers
  • The Company’s fiscal year 2024 guidance anticipates the expected impact on the Company’s operations
  • The Company’s fiscal year 2024 guidance anticipates incremental costs associated with managing higher levels of inventory.
  • For the first quarter of fiscal year 2024, the Company expects net sales of approximately $560.0 million compared to $688.8 million in the same period last year.
  • Net loss for the first quarter of fiscal 2024 is expected to be in the range $(10.0) million and $(5.0) million, or $(0.20) and $(0.10) per share.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+2.0%

Avg return

Earnings day

+3.9%

Avg return

5 days after

+4.4%

Avg return

30 days after

60%

38 / 63 earnings

Positive

+34.7%

Q4 2020

Best reaction

-43.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2025
Q1 2027+5.1%+6.4%
Q4 2026-11.2%-12.9%+0.0%
Q3 2026+3.7%+5.9%+2.2%
Q2 2026+2.0%-0.8%+1.4%
Q1 2026-18.7%-21.3%-16.0%
Q4 2025+3.0%+3.1%-2.6%
Q4 2024-13.6%-9.8%-10.6%
Q3 2024-2.8%+7.1%+8.4%
Q2 2024+22.5%+26.8%+21.3%
Q1 2024+24.0%+23.2%+15.4%
Q4 2023-2.8%-4.1%+4.9%
Q3 2023-43.7%-42.3%-35.5%
Q2 2023-9.3%-8.7%-20.0%
Q1 2023-5.3%-9.4%-24.5%
Q4 2022+19.4%+13.3%+10.2%
Q3 2022-0.8%-3.1%-6.7%
Q2 2022-1.6%-3.9%-10.5%
Q1 2022+11.1%+10.6%-2.7%
Q4 2021+10.3%-3.7%+1.8%
Q3 2021-1.5%-5.2%+12.9%
Q2 2021+15.9%+17.4%+26.5%
Q1 2021+24.3%+28.7%-3.6%
Q4 2020+34.7%+51.3%+107.6%
Q3 2020+0.1%+1.2%+16.7%
Q2 2020+28.3%+42.4%+30.3%
Q1 2020-13.5%-5.4%+7.1%
Q4 2019+7.4%+8.4%+20.5%
Q3 2019-19.4%-24.9%-28.9%
Q2 2019-0.0%+3.6%-8.7%
Q1 2019+13.3%+14.3%+0.6%
Q4 2018-7.1%-2.4%-6.6%
Q3 2018+16.4%+15.6%+28.1%
Q2 2018+10.3%+5.2%+3.7%
Q1 2018+23.2%+29.9%+16.7%
Q4 2017-12.0%-4.5%+7.7%
Q3 2017+2.0%+9.3%+8.8%
Q2 2017-24.4%-21.3%-31.1%
Q1 2017+4.2%+8.3%+17.8%
Q4 2016-20.6%
Q3 2016+7.8%
Q2 2016+4.7%
Q1 2016+15.4%
Q4 2015-1.8%
Q3 2015+13.9%
Q2 2015+2.9%
Q1 2015+9.0%
Q4 2014-6.5%
Q3 2014+17.2%
Q2 2014+14.9%
Q1 2014+23.0%
Q4 2013-4.1%
Q3 2013+0.1%
Q2 2013+11.0%
Q1 2012+0.5%
Q1 2013+4.7%
Q4 2010+4.7%
Q4 2012+4.7%
Q3 2011+1.7%
Q3 2012+1.7%
Q2 2011-21.2%
Q4 2011-21.2%
Q2 2012-21.2%
Q1 2011-6.7%

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