G-III Apparel Group, which reported a 36.1 per cent decline in Q1 sales, has shut down 200 stores as a result of disruption related to the COVID-19 pandemic. For the first quarter ended April 30, 2020, the company’s net sales totaled $405.1 million, declining from $633.6 million in the prior-year period. Quarterly net loss was $39.3 million, or $0.82 per share, compared to net income of $12.0 million, or $0.24 per diluted share, in the same period in the previous year.
G-III has taken specific measures to preserve its liquidity during the COVID-19 crisis, including the furloughing of a large portion of the company’s employee base, as well as significant temporary salary reductions for its senior management. G-III has also worked to reduce its inventory exposure. In addition, the group is conducting a comprehensive restructuring of its retail operations, which will involve the permanent closure of all 110 of the company’s Wilsons Leather stores and all 89 of its GH Bass locations.
The group has entered into agreements for the early lease termination of a large majority of these stores. Through these closures, G-III hopes to significantly reduce its retail losses and ultimately make the segment profitable. In the meantime, the company’s wholesale business, which achieved $2.86 billion in annual sales in the fiscal year ended January 31, 2020, will continue to be its “primary growth and profit engine.”