G-III Apparel Group is growing bullish on 2021, as the company racked up first-quarter results showing a turnaround from the previous year. The company also made some big changes by closing its Wilsons Leather and G.H. Bass stores.
The company racked up profits of $26.3 million, or $0.53 per diluted share, in the first quarter of this year (ending April 30). That compares to a net loss of $39.3 million, or $(0.82) per share, in the same quarter of the prior year. Net sales for the first quarter of the year (ending April 30) rose from about $405.1 million to $519.9 million, an increase of 28.3 percent from the same quarter the previous year.
“With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating, and our overall business in North America is getting stronger,” said Morris Goldfarb, G-III’s chairman and CEO, in the earnings report. “These trends provide a good indication for the remainder of the year and give us confidence that we and our industry are well on our way to recovery. We believe we are well-positioned to capitalize on consumer demand as the year progresses, and are optimistic about this fiscal year.”
Last year saw major drops in sales regarding the company’s Wilsons Leather and G.H. Bass stores. For example, in the third quarter of last year (ending Oct. 31), net sales for the Wilsons and G.H. Bass portion of the firm’s retail operations segment were $38.2 million, in comparison to $59.8 million in the same timeframe in 2019.
The report said that the company has completed the restructuring of its retail operations and shuttered the Wilsons and G.H. Bass stores. The move follows declining sales during the pandemic, with losses in those chain stores of $15.0 million, or $(0.31) per diluted share.
Mr. Goldfarb added that “as the world reopens, we are in a strong financial position, which we believe will allow us to fund our growth domestically and internationally and enable us to take advantage of opportunities that arise.”
G-III also owns the DKNY, Karl Lagerfeld Paris and Vilebrequin stores. Its digital channels include DKNY, Donna Karan, Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass brands. The company said it has 30 licensed and proprietary brands.