GIII - Earnings call transcript Q3 2022 | G-III Apparel Group, Ltd.

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Operator

Good day and thank you for standing by. Welcome to the G-III Apparel Group Third Quarter Fiscal 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation, there'll be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please hand over CFO. to would now speaker conference to like Nackman, I your the today, Neal Please go ahead.

Neal Nackman

thank us. Good for And morning. you joining

certain like Before I session the may within and to federal statements statements Q&A made forward-looking meaning remind in we the on would participants the begin, constitute securities call today's that of laws.

discussed company now Executive implied results that Goldfarb. company any guarantees The differ financial the in materially operations expressed or our the filed Forward-looking could the the to statements. may Officer, Morris from forward-looking factors documents to Important actual results by Chief turn statements with the update in and and are duty condition no statements. the actual company of are call SEC. not will I or to cause over undertakes forward-looking those of Chairman differ

Morris Goldfarb

to Nackman, in year is the Good Financial Officer. morning. me joining half. continues And today pleased that thank Also you our of the Chief us. second first half joining report the Neal into for I'm the momentum

of XXXX, For quarter our with bottom line fiscal top third we exceeding guidance. results delivered both our our outstanding and

to the and, class to world continues right consumer product importantly, significant deliver team the at time capture Our additional share. meet demand right market

maintain to disruptions. supply continue flexibility, We chain navigating

XX%. expect exceeding we approximately results now significant our company's the We in confidence the have fiscal to income pre book, deliver with demand XXXX per pandemic XXXX raise annual order guidance. net Given we're full-year share strong seeing combined across the brands, history, by our diluted our fiscal highest our to

as to in and the affording in to expect our leader future acquisition to fashion. flexibility year continue our financial strongest position, enter a in us We new the invest growth elevate global fiscal

net fiscal This year's the quarter XX% guidance by an quarter million. were to net net in Net to billion, billion. last quarter ahead third third third were approximately was $X.XX the $XXX for results. third at sales compared million represented increase quarter. of for let's in increase review our compared of our quarter sales sales the where quarter $XXX XX% third year's last $X.XX XXXX driven Now, This sales of segment, wholesale our up

Importantly, segment sales levels, third down pre for our ago. net third quickly years quarter approaching quarter X% are sales wholesale only two pandemic net from

our income $X.XX diluted share exceeded was Third years share income the range diluted third guided per net of a net ago. diluted third This net year which of to our diluted our in net quarter $X.XX is per last share midpoint $X.XX compares share, quarter highest per by the income XX%, income in per of quarterly and history. and two in quarter

Now, let's walk through of highlights. our quarter you third some

broad casual sportswear to pieces fits, the into we're have polish we categories, with position sportswear, functionality as and performance of product or athleisure as an on leading layering for the pieces, to transitional softshell the and selling key business Comfort, collection and become across a three cleaner market colder these business In And holiday brands outfit. believe of has business. performed an and our have retail and build range while each grow these we transition are builder categories well tops, continue will that the become us. in experience momentum casual robust With dresses and a important active casual assortment results. offerings, third our at well inventory of in offer exceeded wardrobe significant supports continue athleisure is layering and business, and denim blazers, across with expected, a key a of that a the a season – jackets. opportunity for across programs. in been focused dresses to full casual gains Our younger wear. to new we drive shirts, Outerwear and fashion expectations collections sportswear, our businesses. bottoms, lifestyle, of gifting to an quarter, for good well we fall it Customer outerwear, our jeans, our these share for career we Jeans Along customer collections pieces aesthetic, again comfort as response athleisure, casual weather. with to power overall strong, positioned levels assortment have and anchor strong including a contributor soft our sweaters, complete

brand's business capture and also which investing levels. sales and China, on our a XX Paris, net DKNY the for Handbags footwear XX% AURs Lagerfeld also focused sites. Lagerfeld clear dresses a approximately of Pre-pandemic, net over expand annual the were best-in-class Lagerfeld net The digital digital than customers. incredibly two largest Karl the this our total business solid We're is Improvements with increased Klein and ago. career our $XXX are began of are million. quarter We we growth compared our million. sales and higher footprint are DKNY path sites DKNY, surpassed several store to But remain expectations. progressing organization. be digital XX% and Lagerfeld become stores retail and year, year, Paris on outpacing rapidly Calvin the with Last to adding in priorities. Lord sales brand's expectations million Paris the is on $XXX and accelerated and ago, growing. We And able own lost has successful Macy's, one partner Karl up at omnichannel is on second this Paris larger our sales In strong of Taylor, almost $XXX Vilebrequin's in years Our a outperformed XX% were with to levels, Karl levels sales also we to collection accelerate up priority. total pre-pandemic for were the sell-throughs. next sales & over double-digits. categories for Lagerfeld remains Karl far exceeded sales both approaching our two achieving that now in sales believe pre-pandemic Compared demand and pre-pandemic than wear years. digital years this Digital been over to several to platforms to We're Paris sales to well. retail year. key Karl

productivity next look This these customers is add With first to new replatforming that complete, operations the additional our expected In the modern will enhancements and year. phase, to boost phase aesthetic to sites has responding the sites. navigation feel a and the of are to. technical seamless allow next of performance

retail to brands operational We're Zalando capabilities with our effective. capabilities, best-in-class creating and analytics, and external our our internal and become reporting agile, data-driven efficient and the improving are building that investments Fanatics. including are tools make and We better, technological efficiencies into data workflow global invest We're building decisions. are ability presence also insights more and Amazon, to our increasing to to play These already customer operational in standardize grow pure across continue sites, on actionable our faster, internal team. leading our providing and behavior on

on Karl Paris collection. campaign into diverse highlights a new exciting are with seeding, holiday features to marketing, influencer of combination is direct-to-consumer GEODIS, efficiencies. season. transitioning will our relatable focus Lagerfeld we're audience qualified and digital operational which a paid to and marketing. and our drive and with Our a partner, and new shipping warehousing the influencers DKNY's increasing new campaign In celebrity leveraging is our digital Both multi-pronged momentum brands, logistics approach media, through across younger investments our to that ecosystem drive the après-ski our building

enables an brands registered believe growth for weather exclusive one profit opportunity the there next sites. collaborations, like quarter, will distributors for brand's and to the in status sales sleepwear. are expect in expanding capital-light footprint, that retail with distribution through even brand In continues This to Our and strong year Palm pre-pandemic becoming partners destinations, Space place. brand. operating into follow royalty anniversary international In and watches, Saudi compared partner China, double the entered us the growth lifestyle grow royalty categories the operated stores positive offering order and expanded one Europe, athleisure fragrance, a We Turkey warm to celebrated is sales with double-digit movie, setting strong, kids, wholesale Licensing in important We years levels own to the categories into new this categories Kuwait. Jam, including additional ago. is Vilebrequin our with back Angels and interest. to licensing to a and customer sales, including year. book, markets. highly to business pre-pandemic international partner another We're is levels, expand to are primary intimates Donna play growing. stores accelerated DKNY meaningful The solid in income accretive based restrictions We wholesale Israel quarter, a which best-in-class growth thoughtfully in and Arabia, two operated creating with XXth created pure addition generates we compared especially This stream stage lifestyle are stores, our Vilebrequin in driving year across residences. open driver. Riyadh, increased be for US. with next as Karan to and our two with this of in and sales territories in third omnichannel We wholesale

For approaching Donna approximately billion. licenses at Karan, DKNY $X and are and we brand's XX sales the have retail total

our will our that more expand announced to leverage ahead. take partnerships over with expertise We'll presence across we license fragrance Parfums in these the continue quarter, portfolio. much to Inter brand's This their

model. through programs, consider operations. at look to operating improve online selling omnichannel which in let's store, our Now, leg third and continue a we Trends our retail to virtual

we're mentioned I stores economic good As quarter's last on some with call, terms. new opening

we which Lagerfeld quarter, new Paris opened to Karl stores, start. are This a four great off

DKNY the Karl XX end We to year with Lagerfeld stores. expect Paris XX and

we be further thoughtfully expect we to able expand base. leverage footprint, expense the to our As omnichannel

completed me of leverages with let stages significant just with in a European relaunch, early we're awareness. Sonia European of ahead. initiatives brand iconic discuss Now, luxury potential fashion our We working back-end operations. which an We're the global infrastructure the the Rykiel, acquisition few the of incredible on

brand. collections across We globally. multiple expand first Europe in be untapped this Our then to for potential in rapidly expected then France, available throughout and next believe categories the are fall

G.H. own, XXX-year-old a its Another already a Bass. leverages legacy, we There's initiative brand we've working rich in value stream. licensing significant royalty which been provides on

capabilities, incredibly fiscal strong raising toward just year. an Bass net approximately and opportunities we to of for Outdoor. anticipate harnessing collection adjust by on We It we're now needed businesses and the Wholesale growth brand quarter, our production incremental our footwear and this sales market Rykiel macys.com billion. to with wholesale Paris our XXXX launched shift our lifestyle we're for off our present flexibility we're combined book, based additional ago. full practical, With capitalize designed launch, levels order it's sales years for women. for Both business, apparel distribution Additionally, untapped strength opportunities, apparel capitalizes third approaching expand these quarter up Macy's pre innovative in business $X.XX design the bass.com men and and continued and to year represent and the our the then are guidance developing fast Sonia Karl in develop and past this stores, pandemic business, XXX sensitively as launched to brands. Bass fiscal which start. the on Summing outdoor share of net good Lagerfeld on be a secular men's an as two an full active avenue. to The offering growth Outdoor men's

diluted expect XX%. per XXXX income to our annual exceeding highest fiscal by share, net pandemic deliver in approximately results pre We

for fiscal be to as discussion now Neal call the expect in year guidance pass a as of financial our quarter full I'll also well financial XXXX. We position. for the third strongest our to results, the

Neal Nackman

and retail prior for you, Net our This wholesale the Net and Wilsons October all million. Bass of quarter above billion of result million period segment third $XX the XX% of in $XXX Leather third year guidance the Sales retail operations is segment and Lagerfeld were for compared were restructuring million were increased XXXX, XXXX. $X.XX last to quarter XX% sales XX, our million sales last compared of approximately Morris. which sales segment were Karl Thank impacted Paris our from fiscal a to in year, at of year. from Net increased to same $XX were close approximately ended up operation billion of billion. year's sales our $X the the store $X.XX $XXX operations last sales by pandemic. G.H. of the the the businesses net DKNY to our end when decrease by

in year's margins compared COVID-related fiscal third third quarter XX% Our of included Last adjustments. gross last XXXX the quarter. XX.X% year's from in to margin was percentage benefits gross

included ago. due included were compared of retail half retail margins last reversal the XX.X% this XX.X% years have XX.X% was year. quarter Wholesale accruals freight gross benefited of significant price penetration due to closures. The ago. retail, the the operation one-time and of previously decrease in less Wholesale year in at operation in and retail in margins percentage ago. current from compared sales ago years by customers. our were closing million negatively segment in year's operation to increases. store to offset the comparable million prior in third year's SG&A no inventory expenses. expenses markdown anticipated year's the the that the year's expense, The increase the quarter percentage store percentages attributable as years retail bonus restructuring and gross or comparable with result from longer last to The percentage impacted from in Our increase Wilsons year's an XX.X% Net would connection of which primarily diluted Bass $X.XX income Bass were to in was two share. last Last Last improvements years anticipated the These quarter for segment years margin two losses segment million, to of year is quarter two more per or to share, per with clean on retail gross as well income third of quarter, year's margin $X.XX operations reduction promotional compared activity, combined with quarter margins compared XX.X% included is were to selective per two XX.X% significant primarily share. to decreased operations correlated gross was gross two per third resulted $XXX the in by resulting second in for of share our quarter our which of in $XXX in necessary we of last quarter. the gross compared expenses compared XX% increase and in impact and diluted was $XXX or million benefits the margin the the million had costs, share inventories stores. third this direct to $X.XX compensation a debt million $X sales, in was year's direct per our in segment, expenses in offset and and from Net $X.XX or $XX $X.XX million liquidation accruals, increase in $XX to as bad an in store $XX losses ago Wilson's store an reduction by

the $XXX balance Looking million the from compared to debt year. end $XXX ended million of our were $XXX year. net position last in receivable Inventory million of of year. $XXX at decreased sheet, the the at at prior end the We $XXX million in third accounts quarter an the of to of previous the compared improved million quarter third million to $XXX quarter

global have cash leader as our and under of million. that to elevate our We the provide agreement continue position financial invest and credit flexibility a availability We growth in our position over our fashion. and to $XXX liquidity future us believe in

demand guidance, previously order for feel guidance. book, to our based confidence raise about product our business, as provided As the Morris to us good on we our our indicated, giving strong and our

conditions impact the in chain current delays Our guidance does and include of supply receipts.

not not aware we does any already. of that are guidance pandemic-related our However, contemplate impacts

could restrictions other variants government anticipated not new impact or arise the variants. have new or that closures store recent from the of We tighter

results million $X.XX levels We fiscal sales income fiscal or diluted highest to fiscal close million $XXX share. of per $XXX in net the million and fiscal XXXX our XX, us now compared between full history, million the in $X.XX in full in ending last or we $XX year exceeding between per pre-pandemic sales share to XXXX $X.XX sales This of annual income and the approximately net $X.XX will This diluted diluted January be million or year. billion $X.XX $X.XX by XXXX. in XX%. net expect pre-pandemic below current $XXX For and share and XXXX, fiscal $XXX the year approximately net fiscal XXXX approximately XXXX, Wilsons to income diluted for for leaves expect share Bass store our compares G.H. year per XXXX. be year of guidance now company's the X% billion Leather Adjusting per fiscal

this in for disclosed fiscal operations. back quarter release by two of and reference, my Leather concludes closing your last turn issued our Morris store years is the call the to the remarks. G.H. impact will press Wilsons comments. now morning for That For I the Bass

Morris Goldfarb

G-III even successfully Neal, the navigating an pandemic. stronger you, Thank has emerged as organization by

high-performing combined our experienced delivered Our teams, challenging our senior results and leadership, great have consistently through and environments stakeholders. forward-thinking to executed with

in growth. disciplined our industry. in choice on power We a a profitable and range our a keen in brands with dominance approach categories, will diversified of of lifestyle recognized our fueling remain our G-III eye vendor remains globally With

with business the seeing a outlook Given the remainder we're strong year. brands, of in demand our for we're strong order our the across confident combined book,

and capabilities like and positioned time to share we're Operator, and take well support. now We use have entire questions. some to organization to our I'd global ready balance continued our our G-III and talent, our thank the shareholder their over all ability stakeholders market to gain further sheet, to increase expertise reach are value. for expand

Operator

[Operator Instructions].

question Yruma comes Ed from first KeyBanc. Our with

Edward Yruma

couple questions a quarter. for a on I congratulations just me. guess Morris, fantastic

just you some to up just at comments concessions versus about And understand the what what's business inventory do on that Macy's. more what step Taylor, Lagerfeld versus guys much margins? then, constructive the given I you. is very that and First, Lord you & some margin up, think size a $XXX performance. industry obviously, I pricing? as follow what's how it guess wise we due relative How lower is Thank in very permanent ramp trying think should was had lower how transitory And guess, to I'm million? to to this markdowns of condition more strong

Morris Goldfarb

with categories were enhancements choices likely We I are due the buy. target purchases, negotiated brought the new did. back. well not how unit price Our pricing, well and come at go anticipation categories, feeling gut maybe we that we good they to could We after, say to our categories of margin that our be of found were inventory we the would With that, our in experience, and increase of enough partly all average the knowledge, on breakout business would coming in to prospered across. our fortunate the the the pandemic down retails on they primary that retailers in points, our as owned initial favor as

points margins the for our We've and are So, buying unit average out the retail important year. aggressively likely to proven elevate and coming that fairly of going price initiative support the continue. out

Our order book forward. supports good business going

and the Pricing also Our – well breath the East. we've historically, now American distribution with distribution in Europe is resource. as our the enhanced by of North a penetration of and globe China Middle as in further been

Macy's estate that that real We estate Taylor and to exit and to Taylor, in great gave York a been & with. has opportunities felt comfortable business, maybe likely What for opportunity product Performance Jones accounts We our Macy's had and And with Nordstrom's, than sufficient of every that and Karl in should we're real Dillard's to the the we're Bloomingdale's sooner was XXX initial when New afforded all came doors to on date. on The Canada. our had our a open Lagerfeld dead was the we year us supporter was finish with lenalidomide, the sell-throughs into they amazingly Taylor retailer Paris acquired Bay interest The We've Lord would to Macy's the with strong. went Paris, in intention build group. toward filled retail, & headed of pricing. of has doors better That the Karl true the some XXX been date brand Dillard's, leave product us and The we what And good. performance great. from So, & later at the unfortunately, the Bay, We're form, & And initiatives. XXX historically expected. Lagerfeld, where Lord Lagerfeld industry. our XX business of best it target Karl was that best the been I DNA at are of Lord side of be. Lord we And gotten mentioned. that doors, just took with Taylor and the as the the bankruptcy.

within So problem next years, not we top million achieve. feel $XXX comfortable sales line in to that, is a the few

Operator

Our Piper next question comes with Sandler. from Erinn Murphy

Erinn Murphy

of A Maybe, Morris, questions. couple it's you. first for

higher into see freight persisting have ball, what's in You very little And then through of to there's about been sounds And far I'd of chain to market products now? air follow-up. in a timely ocean these a I love built-in a crystal nimble have XXXX? the It of then to the challenges little ability balance versus course, you right your how like long bit a freight hear always supply bit do manner. your And on get side. more costs.

Morris Goldfarb

aggressive Let our year. back anticipation. and the and core for start The of the group clearly shareholder will our we'll QX more sourcing you're group, much being your then transportation aware our with competency. But calm QX, or part you issues is that last as That's for stakeholder down probably our end of question We hit believe problems pretty deeper that XXXX. the of incurred us first. me all and through

well-defined We have organization overseas. a

relationships going that would years that and into that not countries consistent We suppliers. were we've XX to have adamant and for had problems. short-term We travel we present XX were growth leave

of what old loyalty the went year. pandemic. both and most our that's friends' reasonable by the maintain saved adverse really we We affected to at products we receipts the The then in truth period, breakout and we ways. got presence of was and more payback bought loyal that facilities, cost were the you a this conditions. them time in container recently And us So, factory fairly container tell space

again. receive little fair we'll start share that comfortable bit a our to than we're for receipts. goods So, earlier historic. a of XXXX believe We've product bought hedge. We That's

We have the to capital receive it.

We retailer And have the we take to hold facilitate have in and our warehousing process. cooperation help to it. inventory

I you strange control give So, to the it's We're don't we're I your freight I percentage But year ports our for bit comfortable. wish the that We're negotiating capitalized have But percentage can receive are in. what product. question doesn't of I times. you I air a X% can't. These predominantly XXX% response little And in of all could bulk probably comfort. business. me. front to we on number with in the In we believe would freight. we're prices our freight, We're of costs. on of our coming air of we seats. authoring pass a tell live boating the that. it that of we're small

Erinn Murphy

just for Thanksgiving How and What's these the season. critical is it holiday Second outlook Christmas? expectation your weeks your between question started? in on has

Morris Goldfarb

the business warm. a wide concern. sales open was last As a little in also broke, broke Weather as And we fruition. to weeks. anticipated, the our was came couple There our coat of weather little

business both Friday. been Our Monday has excellent Cyber Black and for

up, DKNY My as more And DKNY flat. like that, but were was Friday, We Karl most, were to doubled Cyber there again, as than was good, up do we Karl in north comp sensationally And to of stellar the transactions. reads Black were down XX%. of mid-teens. than fare internally. spite didn't XX% in XXXX more better performer. closer a numbers, It highlighted as Lagerfeld Traffic comparators Monday, closing business. I read. by Lagerfeld up well. was And increases XXX%. early more we're and Our were

we've our forward. unit And seen our is up, you've or revised anticipate We you've a retail going as as margins budget average in forward. growth for are the and going heard, good strong position And Our sales we're up. dramatic year.

Erinn Murphy

about I haven't yet. heard Calvin anything you Tommy say or

Just curious there. on performance

Morris Goldfarb

Tommy dress And business every Calvin excellent. cited has our by followed very no area Calvin the Our slowdown. DKNY in leads quite Klein in those Klein and Tommy good. been being performance Calvin We've store we've level. brands category. been is Klein excellent. at are department Hilfiger. dominated dress There's the has the And strong charge, good.

on good better our on are our But quite power brands. our company brands. is on margins Our business all

Operator

Our next question comes from B. Susan Anderson Riley. with

Susan Anderson

job I the now wondering Europe? and maybe DKNY expect Nice you go, economics stores the those quarter. business, on where then that also, could And as that open profitable if was it's Karl. you you retail about the talk just remaining more of about to particularly talked you in

Morris Goldfarb

knowledge take risk of in company-owned will we bet region those failure first. in stores and let actually, supplying and cooperating to great. last stores. us point it's no The risk be the The Arabia, one, to us. I is expense not to we Riyadh, seriously. that Saudi great Number and believe no product stores at East our hedges and hit Their me that the They're cited the Middle were But, stores. distributor

So in a launch it's time to it, regions. great those and Donna Karan we've researched

Our the side stores, And our appeal globe. has was brands the When DKNY XXX just the it seasonal as everybody. amazing estate And amazing And coat Wilsons, out store, which we where we watch for what failure. chain. product differently back. leather I the we a Lagerfeld so time It's as stores. nowhere stores, been tourist the It's then recognized two mismanaged on. build negotiated we the prosperity the Wilson launched business in we we had and better. evaporated, have stores. the well first was had a There prepared that. did real Today, historically. kick had of And as leather with Bass throughout pretty geared with Karl said event broad even to comes in we is have much in script, career, recognized near product, toward had The when outs than our are north XXX risk when of of of

Lagerfeld three of So, to not DKNY, XXX and But be a there's And the with price DKNY stores being grow next the north but G-III. more little broader the we opportunity a we're XX the Karl that does XXX stores will years. stores population. cautious. US, It to sensitive in possibility we build five different. within build appeal to have American to

And have different and performance We we evaluating our needs. systems, our management team. a different have

So, and build careful on more much more comfortable how we much retail.

Susan Anderson

that in bit just it's base one that the on back thinking grow And just us to the now how curious where to and there growth about we're follow-up longer-term give DKNY and can on I a expect add op brand? update you're for and past an you sales the mode. margin little brand if pandemic you could if I'm looking the

Morris Goldfarb

Our business to continues DKNY grow. in

approximately $XXX wholesale are million We sales. in

have growing. licenses as all we or licensing told, we brand. sales digital partners, retail billion $X in We that is a stated have with believe And business approximately I before, this our

We have time product. best-in-class better continue a to licensees, and contractually period good get at our bound of to

exceptionally business around. Our turned It's good. has handbag

even performance like its Our well. three footwear pace. is wear, on And doing top in up picked one country brands ready has or four we're dresses, the business to categories of the

I've and not, DKNY, growth. better it that in said reason there alone, believe and next dramatic firmly products. we And margin before. the with, years, or see that, better is hands we few reach So sales. believe in can't $X get There billion our can within it no I

Operator

with question Jay next Sole Our from comes UBS.

Jay Sole

a to chain. follow-up want about question supply on I

the think on bit level remarks how do some for in on get into from in points also, then, in guidance detail, of made possible – XQ is chain how high question? to And challenges we more trending a the see and maybe margin challenges? should your actual based headwind this about said you an XQ? like comments impact those little impact how but many what's gross earlier give Morris And about it color, implied as you quarter, margins You basis what that XQ on you supply

Neal Nackman

we the see With on quantifying half. respect Without In increases. can be you freight business impact in margins again greater fourth our were was really noticed than the you to from That impact the first of seen quarter, first down the XX%. significant, quite wholesale what quarters, we're what we the was If it below will the we've expected amount, the that. anticipated. that two north specific

So, but we two with costs. still where that will segment freight years at that wholesale will exceed the ago, be gross expecting our higher were we're margins

half Morris try into as lot to far hard lot certainly a out We hard As of that year. of still to costs And that how parts going those a put as have supply to on the pressure the do working different smooth we'll expect We very very of that higher little the first of whole us. happens. mentioned, a should next freight in people chain. think year, determine

spring line. really all However, of we're our pricing

a thing freight. into more – the a us saw And to little is than all of impact this one year. product it's including inflationary last visible I for to think is this price pressures, year us of of little our we're bit some we our trying what

Operator

Advisory Telsey with from comes Group. Dana Telsey question next Our

Dana Telsey

changing, given wholesale on Congratulations for Morris, channel channel digital mean touch wholesale, your It nice the in And brands it of distribution like and the the see differently? progress. both do has how with physical? points strengthened. what you wholesale does your seems each

Morris Goldfarb

unfortunately, industry wholesale, really digital really changed that the means and mortar. their credit see doesn't. assumption, a play question. not much, any we We've good sites that brick actually digital. off changed and wholesale they're because being pure retailers spinning But That's getting for has It is the so

that, Saks pure line, creating mortar. old that be of assumption and brick what So, traditional was out was of digital. and value they're an example creating would great underlying just play a it

not the wholesale number we mortar better. XX% is And is all growth, know. staggering and under in that The to getting So, grow. And digital brick continues from as umbrella. we're far approaching

comfort As do out world. back of traffic And comes the stores in dinosaurs and mortar brick and my going to us, not and stores they're not likely my dormant world. better. shopping the They're far are to in

have concept part at and a If smaller, doing that reports easily new come that which is Macy's, and in they are you shop. new on significant is is coming look some of investment well. Macy's the that concepts The gotten back to the even they're through

if digital greater standalone a And our of creating in standalone doubled say on be focus a a mortar is time, that future find brick growth successful piece, to we've and a their retail and distribution. as create, I'd business Saks we and is over So, digital a spin-off there business. There'll we'll standalone. greater

all think or I form our affect they some another. in So brands

her. knows said The is that I hide. approach our the tries going where we're we're got Asia, that don't that business. think proved Europe, there's we're company, remind out distance going we're we we all the going follow to next get sizes, company that to started know men's him. we're our consumer. business And which around of leather four mass, We're This agile we're we're I've company company, did luxury, her, And go. color, build here China, We're we a jacket, you If long to find as to I you people, And one going her. did. get I that regardless if we've to and its to Dana, do, a one we like customer that's out. we're we're she to get an license, mid-tier, way Southeast And we're team to

we'll that got shopping. find regardless it. a sorry, that customer I on where customer little wordy is So Dana,

Dana Telsey

No worries.

How of and PVH follow-up. Obviously, renewals a at that quick working coming Just them? you given new with of in. timing one lot the personnel licensing was change with

Morris Goldfarb

to know, different and all get Hilfiger. management, as believe perform renewed exceptionally well. on time but is were Klein, have left it here new And that we're no there's reason as we've We dynamics, There doesn't some before. renewed. So Tommy I we Calvin we

believe several posture to partner. do of to PVH keeping their change us that We've have script And a in proved the As out. said business. where wholesalers no times, in we're choice as reason that would I I

Operator

with last comes CL King Marotta Steve question from Our & Associates.

Steven Marotta

first or at Neal, guidance, there that looking the the you're costs can to of the year puts that I up maybe the comment, you shipping the other with know whole year obviously, for first half year. are in and either with in not and associated takes through takes half, the puts you're But of exception the runners elevated that providing would shipping? say, be, next

Neal Nackman

next And business in increase getting with respect year lots is this of our accomplished operating there's year. the operating higher uncertainties. We've But obviously, significant volume that in We're two on of to we've business profit did early past less our we wholesale with than truly Steve, new wholesale got astounding. for business. margins what it's part ago. years

pressures, As respect our to opening pricing. to with that we'll I mentioned freight, be we inflationary earlier, offset able including think

been great As sourcing. Morris mentioned, always at we've

think tell point, next our you solid don't this book us. that'll be for strong. order very year. for So I a I call a unusual strength we see, is any really for at the spring very, It's outs bit early. can

building we really a encouraged what's very continue the year be phenomenal been expect with off year expect we're to a So for really and phenomenal for we of to And us. start. us what

Steven Marotta

just one Neal, follow-up that. quick to

is the constraints you've You understandably sure is chain supply spring conversations mentioned that you want in moved the earlier. critical other for that words, previous as spring? you correct, still snarls. supply be to In me mentioned, it what in your one this memory given chain into were continues delivery strong. year to my much so. overseas quantify had pretty we've serves order ordering current And had, offset the book I'm don't and If that much, case to that Is for actually we

Neal Nackman

whatever to can. calendar, part been to move get the Yes, has of Steve. mitigating process, try That's our been ahead we up of

Morris Goldfarb

interest Thanks new healthy I'd company. for our Thank you and a season our to a listening all. your happy, you like and and holiday everyone safe best to call wishes in for Thank for year. wish all.

Operator

conference participating. Thank for concludes call. today's This you

now may disconnect. You

G-III Apparel (GIII) 1 Dec 212022 Q3 Earnings call transcript