Higher costs affect G-III
12/12/2011
Net sales for the New York-based group, part of whose activity is to manufacture licensed apparel for professional sports teams in the National Football League, the National Basketball Association, Major League Baseball and many college athletic teams, increased to $510 million from $450 million in the third quarter last year.
Net income for the quarter grew to $43.6 million from $42.7 million 12 months earlier.
Morris Goldfarb, G-III's chairman and chief executive, said on announcing the results: “We achieved our sales objectives for the quarter, but found it necessary to utilise promotional strategies given the continued challenging market and weather conditions. In addition, we experienced higher product costs than last year. Our lower gross margin percentage in the third quarter reflected our higher costs and the promotional environment. We expect these trends to continue to impact us in the fourth quarter.”
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