By Connor Hart
G-III Apparel backed its full-year sales outlook, but the company pulled all other guidance for the year due to uncertainty around tariffs and macroeconomic conditions.
The company behind fashion brands DKNY, Calvin Klein and Tommy Hilfiger said Friday that current tariffs are expected to result in costs of about $135.0 million this year, largely concentrated in the latter half.
It added that it is working to offset tariff costs by diversifying its sourcing mix and selectively raising prices, as well as other cost-saving initiatives.
Chief Executive Morris Goldfarb said the company's management team has a track record of navigating periods of uncertainty. "We view the ongoing disruptions as an opportunity to strengthen our competitive position and capture incremental market share."
G-III continues to expect full-year sales of $3.14 billion, compared with analyst views for $3.12 billion. It withdrew its guidance for net income, adjusted net income and adjusted earnings before interest, taxes, depreciation and amortization.
For the current quarter, the company guided for per-share earnings of 2 cents to 12 cents, compared with analyst projections of 48 cents. It expects sales of $570 million, hurt in part by supply chain challenges. Analysts are looking for sales of $621 million.
These outlooks came as G-III posted a profit of $7.8 million, or 17 cents a share, for its three months ended April 30, compared with $5.6 million, or 12 cents a share, a year earlier.
Stripping out one-time items, adjusted earnings were 19 cents a share. Analysts polled by FactSet expected 13 cents.
Sales fell 4.3% to $583.6 million but came in ahead of the $580.4 million that analysts modeled.
Goldfarb said the results were fueled by double-digit growth across the company's key brands--DKNY, Karl Lagerfeld and Donna Karan. These gains largely offset the exit of the Calvin Klein jeans and sportswear businesses, he added.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 06, 2025 07:28 ET (11:28 GMT)
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