Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

DKNY and Ivanka Trump Apparel Maker G-III Falls on Forecast

Like many US apparel makers and retailers, G-III has faced sluggish mall traffic and a consumer shopping shift to the internet.
DKNY Spring 2017 | Source: Courtesy
By
  • Bloomberg

NEW YORK, United States — G-III Apparel Group Ltd., a clothing manufacturer that works with brands such as Ivanka Trump and Donna Karan, fell the most since August after sluggish retail spending crimped its annual forecast.

Earnings will be 99 cents to $1.09 a share this fiscal year, excluding some items, the company said Monday. That fell far short of the $1.34 average of projections. G-III’s sales forecast also missed estimates for the period, which ends next January.

Like many US apparel makers and retailers, G-III has faced sluggish mall traffic and a consumer shopping shift to the internet. The company also is digesting last year’s $650 million acquisition of the Donna Karan and DKNY brands from LVMH. It said at the time that it expected the purchase to weigh on profit this fiscal year, before adding to earnings later.

G-III confronted “significant headwinds as the traditional retail environment has become increasingly disrupted as a result of evolving consumer buying behavior and continued penetration of e-commerce,” Chief Executive Officer Morris Goldfarb said in a statement.

ADVERTISEMENT

Shares of G-III fell as much as 14 percent in New York to $19.71, the biggest intraday slide since Aug. 30. They had lost 22 percent this year through the end of last week.

G-III said sales will reach $2.73 billion for the current fiscal year, short of the $2.9 billion estimate.

Fourth Quarter

In the fourth quarter, which ended Jan. 31, the company posted a loss of 16 cents a share. Analysts had predicted a 10-cent loss. Sales rose 14 percent to $603.3 million, though that missed the average estimate of $622.9 million.

G-III gets about 80 percent of sales from its wholesale business. It also operates retail stores under brands including Wilson's Leather, Bass and Calvin Klein Performance.

“While our near-term financial outlook reflects the dilutive impact of our recent acquisition of Donna Karan, we believe the mid-year relaunch of the DKNY and Donna Karan brands will have a positive impact in the second half of the year,” Goldfarb said.

By Lisa Wolfson; editor: Nick Turner.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

What a Fashion Company Is Worth Today

In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.


What’s the Plan at H&M?

The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections