G-III Apparel Group, Ltd. reported its financial results for the three and six months ended July 31, 2024, showing a decline in net sales but improvements in profitability metrics compared to the same periods in the previous fiscal year.

For the three months ended July 31, 2024, net sales totaled $644.8 million, down from $659.8 million in the same period in 2023. The decrease was primarily attributed to lower sales in the wholesale segment, which fell to $620.3 million from $639.2 million, largely due to reduced sales of Calvin Klein and Tommy Hilfiger licensed products. However, this decline was partially offset by increased sales from the relaunched Donna Karan line and growth in DKNY and Karl Lagerfeld products. Retail segment sales increased to $37.2 million from $34.3 million year-over-year.

Despite the drop in sales, G-III reported an operating profit of $41.5 million for the three months ended July 31, 2024, compared to $31.5 million in the prior year. This improvement was driven by a reduction in selling, general, and administrative expenses, which decreased to $229.0 million from $239.2 million. Net income for the quarter rose to $24.2 million, up from $16.4 million, resulting in a basic net income per share of $0.54, compared to $0.36 in the previous year.

For the six months ended July 31, 2024, net sales were $1.25 billion, down from $1.27 billion in the same period in 2023. The wholesale segment reported sales of $1.22 billion, slightly lower than the $1.23 billion from the previous year, while retail sales increased to $67.7 million from $64.6 million. Operating profit for the six-month period improved to $55.0 million from $46.8 million, with net income rising to $30.0 million from $19.7 million.

Strategically, G-III made significant acquisitions, including the remaining 25% interest in Fabco Holding B.V. in April 2024, and a 12.1% minority interest in AWWG Investments B.V. for €50 million ($53.6 million) in May 2024, which was increased to 18.7% with an additional investment in July 2024. The company also entered into a new $700 million asset-based revolving credit facility in June 2024, extending its maturity to June 2029.

As of July 31, 2024, G-III reported cash and cash equivalents of $414.8 million, a significant increase from $197.7 million a year earlier. Total assets rose to $2.70 billion, while total liabilities decreased to $1.18 billion. The company’s retained earnings increased to $1.19 billion from $1.00 billion in the previous year.