G-III Apparel’s Q2 net sales increased by 21.6 per cent, the jump follows 16 per cent jump in sales for the first quarter of 2018.
The apparel group’s portfolio includes brands such as Donna Karan, GH Bass, Andrew Marc, Marc New York and Jessica Howard as well as licenses operated under brands such as Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole and Ivanka Trump.
G-III intends to reduce operating costs through store closures. In its own retail operations, it expects to improve performance through store rationalization, better merchandising and expense reductions. It believes it can mitigate the pressure on its retail results while reaping the benefits of an exciting new phase of wholesale growth as it looks forward to a successful second half of the year.
Going forward, G-III expects to see transitional costs of approximately $8 million related to the Donna Karan acquisition. It also attributed the second quarter’s net loss of $8.6 million, up from $1.3 million in the same quarter in the previous year, to the Donna Karan deal.
The group is positioned to provide exciting new assortments to a range of retailers and to demonstrate leadership in the industry at a critical time.