G-III Apparel recently reported a 2 per cent drop in second-quarter sales, totaling US $ 644.8 million, while announcing a new apparel licensing deal with Converse, a Nike-owned brand.
Despite the sales decline, G-III’s net income for the quarter ending 31st July rose to US $ 24.2 million compared to US $ 16.4 million in the same quarter last year.
“We had a strong first half of the year. Our second-quarter non-GAAP net income per diluted share of US $ 0.52 exceeded expectations, driven by our owned brands. DKNY and Karl Lagerfeld saw double-digit growth, and the relaunch of Donna Karan has been a great success,” said Morris Goldfarb, G-III’s chairman and CEO.
The company’s new licensing agreement with Converse covers the design and production of men’s and women’s streetwear apparel, with global distribution. The new product line is slated to launch in Fall 2025.
“Building a portfolio of desirable brands is key to our strategy, and the addition of Converse is a significant opportunity to expand our active lifestyle category,” Goldfarb added. “This partnership will leverage our strengths to grow Converse’s global apparel presence while enhancing long-term shareholder value.”
Looking ahead, G-III expects full-year sales to grow by approximately 3 per cent, reaching US $ 3.20 billion, with net income projected between US $ 179 million and US $ 184 million—an increase from previous guidance of US $ 170 million to US $ 175 million.
