Despite the decline in sales, G-III posted significant growth in profitability. The company achieved a net income of $24.2 million, or $0.53 per diluted share, a substantial increase from the $16.4 million, or $0.35 per diluted share, reported during the second quarter of the prior year. On a non-GAAP basis, G-III’s net income per diluted share for Q2 FY25 was $0.52, compared to $0.40 in the same period last year, the company said in a press release.

Furthermore, G-III reported a significant decrease in inventory levels. At the end of the second quarter, inventories dropped by 24 per cent, amounting to $610.5 million, down from $804.9 million in the prior year's second quarter.

“We delivered a strong first half of the year. Our second quarter non-GAAP net income per diluted share of $0.52 exceeded our expectations, led by our owned brands. DKNY and Karl Lagerfeld collectively grew double-digits and the Donna Karan relaunch has been incredibly successful, in addition to continued solid performance with healthy sell-throughs across the rest of our business,” said Morris Goldfarb, G-III’s chairman and chief executive officer.

Fibre2Fashion News Desk (DP)