Here’s another victim of COVID-19!
US-based G-III Apparel Group, Ltd. witnessed a disappointing 36.1 per cent fall in its overall first quarter sales – all owing to the deadly pandemic that seems to have impacted every big and small retailer.
In the quarter, which ended 30 April, G-III’s net sales touched US $ 405.1 million – a significant fall from US $ 633.6 million recorded during the same period last year.
G-III, consequently, has now decided to permanently close nearly 200 of its stores, which is being considered as a strategic move to completely restructure all its retail operations.
While the Group closes 110 stores of Wilsons Leather, 89 of its G.H. Bass stores will also be permanently shut. It has also signed agreements for early lease termination of most of these stores.
G-III believes these closures will help significantly minimise the retail losses.
Morris Goldfarb, Chairman and CEO, G-III, said with optimism that the Group will demonstrate its leadership position in the fashion country as it emerges from this crisis.
To preserve liquidity, G-III has reportedly furloughed several of its employees in addition to reducing salary for its senior management.
G-III designs and manufactures apparels for men and women through its owned and licensed brands like Guess, DKNY, Tommy Hilfiger, Calvin Klein and Levi Strauss & Co., among others. Besides, apparels, it is also into footwear, accessories and handbags.
The Group has a global footprint with distribution throughout the world and offices in 8 countries.