Of the $1.02 billion in net sales last quarter, approximately $88 million came from the DKNY and Donna Karan brands, which was acquired last year from LVMH. The company also noted excellent wholesale net sales across all major brands in its third quarter. G-III Apparel said net income for the third quarter increased to $81.6 million.
In addition to DKNY, the apparel group owns brands Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard, and holds fashion licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, and Cole Haan. The company also owns a team sports business and operates retail stores under several banners.
G-III Apparel’s chairman and CEO Morris Goldfarb attributed growth to the company’s brand portfolio and distribution strategy. “We have executed our strategy with well-known brands and compelling product in an environment that remains challenging across our industry. Our products are selling well as we head into the holiday season and we expect to close the year with improved results and sustained momentum,” said Goldfarb.
“We have a growth strategy that works. We continue to own and align with great brands, control our distribution well, approach every relationship as a partner, and deliver to the consumer a truly outstanding range of product. These commitments have served us well and will continue to illuminate our path to long term success.”
Though Donna Karan hasn’t been affiliated with her namesake brands since 2015, her response to the allegations that Harvey Weinstein had been sexually harassing women in Hollywood prompted a boycott of the Donna Karan and DKNY brands. The hashtag #BoycottDonnaKaran was launched on social media, which caused stock to fall more than 4 percent.
Karan stepped away from her labels in 2015, at which time they were owned by LVMH. In 2016, LVMH sold the brands to G-III for $650 million to focus on luxury labels such as Louis Vuitton and Givenchy, which LVMH also owns.
The company is now forecasting projected full-year adjusted EBITDA for fiscal 2018 between $188 million and $196 million compared to adjusted EBITDA of $148.1 million in fiscal 2017 and compared to its previous forecast of adjusted EBITDA of between $180 million and $188 million.