Finance
Donna Karan parent G-III Apparel Group has reported a 21.6 per cent increase in quarterly sales to US$538 million.
Of that, about $45 million of sales were of the DKNY and Donna Karan brands, acquired last year from LVMH. Its other licensed labels include Calvin Klein, Tommy Hilfiger, Ivanka Trump and Karl Lagerfeld Paris.
However the ongoing costs of bedding down its Donna Karan acquisition contributed to a quarterly loss of $8.6 million, substantially higher than the $1.3 million loss in the same quarter last year.
Morris Goldfarb, G-III’s chairman and CEO, said, the company has created a “powerful” brand portfolio through acquisition and partnerships.
“This great portfolio is enabling us to perform well despite significant headwinds in the marketplace. We are fortunate to have developed a diverse business, anchored by Calvin Klein and supported by other brands including Tommy Hilfiger and Karl Lagerfeld Paris. And now, Donna Karan and DKNY, both global power brands, will help us capture additional opportunities. We are positioned to provide exciting new assortments to a range of retailers and to demonstrate leadership in our industry at a critical time. We expect to generate growth in sales and achieve higher levels of profitability as we move forward.”
Goldfarb said G-III planned to rationalise its own store network, improve merchandising and reduce expenses to return to profitability.
“We believe we can mitigate the pressure on our retail results while reaping the benefits of an exciting new phase of wholesale growth as we look forward to a successful second half of the year.
We anticipate achieving our operational and financial objectives and fulfilling our ongoing mission to offer brand and product solutions to an industry affected by disruption and change.”
