G-III Appparel Group Q2 profits down 48%
The G-III Apparel Group has reported that its fiscal second-quarter profit slid 48% as the apparel company discounted merchandise to help stimulate demand and posted higher expenses, though sales increased.
G-III, which makes licensed apparel for professional sports teams as well as brands including Calvin Klein and Tommy Hilfiger, has posted higher sales of late but also has seen rising materials costs pressure its margins. In response, G-III has sought to purchase goods sooner to take advantage of lower prices.
Chairman and CEO Morris Goldfarb said the company was shipping at a solid pace as G-III enters the key selling season.
“Our designs are trend-right across our suite of brands and product categories for fall and holiday and we have a compelling price and value relationship to show consumers,” Mr Goldfarb said.
For the quarter ended July 31, G-III reported a profit of $1.6 million, down from $3 million a year earlier. Revenue increased 22% to $230 million. Gross margin fell to 28.5% from 32.2%.
