G-III Apparel Group Reports 26.7 Pct Drop In Net Sales

G-III Apparel Group, whose owned brands include DKNY and G.H. Bass, among others, reported Tuesday (Dec. 8) that net sales plunged 26.7 percent as its Wilsons Leather and G.H. Bass brands suffered. The company also warned that it expects Q4 sales to come in at roughly 30 percent below year-ago levels.

“As the developments associated with the COVID-19 pandemic continue to be fluid and there is significant uncertainty related to its impact, the Company is not currently providing any additional guidance,” management said in an announcement.

Net sales for the G.H. Bass and Wilsons Leather share of the company’s retail operations segment were $38.2 million in Q3, which concluded on Oct. 31, in contrast to $59.8 million in the same timeframe in 2019.

“We are very fortunate and appreciative to have an experienced and talented global team at G-III that has proactively met the extraordinary challenges presented by the pandemic,” G-III Chairman and Chief Executive Officer Morris Goldfarb said in the announcement.

Goldfarb said the company finished out the quarter in a formidable financial position, with roughly $800 million in cash and availability through its revolving credit facility.

The company said it is reorganizing its retail operations segment, as announced in the past. That effort encompasses shutting down 89 G.H. Bass and 110 Wilsons Leather retail locations.

G-III Apparel Group reported net income of $1.29 per diluted share ($63.2 million) for Q3 in contrast to $1.97 per diluted share ($95.4 million) for the past year’s comparable timeframe.

The news comes as apparel maker VF Corporation, whose brand lineup includes The North Face, Timberland, Vans, Dickies and others, reported $256.7 million in operating income, or 66 cents a share, on $2.6 billion in revenue for the three months that concluded Sept. 30. That compares to $649 million in net income, or $1.63 a share, on $3.2 billion in revenue for the year-ago quarter.

The firm also declared a dividend of 49 cents per share on common stock for the quarter concluding Sept. 30, in contrast to 43 cents the same quarter a year prior.