GIII - Earnings call transcript Q1 2025 | G-III Apparel Group, Ltd.

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Operator

Good day, and thank you for standing by. Welcome to G-III Apparel Group First Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I will now hand the conference over to your speaker host, Mr. Neal Nackman, Chief Financial Officer. Please go ahead, sir.

Neal Nackman

you us. thank and morning, for joining Good

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

Forward-looking could actual may discussed cause financial of or from guarantees, actual differ no forward-looking statements. condition and implied filed update by the documents duty with company the company the are expressed results in or in not to of Important statements. statements materially forward-looking are company results to those factors differ any The the that operations the SEC. undertakes

which the during income, income share, addition, are non-GAAP In financial net EBITDA, diluted all measures. we non-GAAP non-GAAP will refer to per net adjusted call, and

provided is on also in non-GAAP to financial We of available these which measures our release, have GAAP reconciliations press our website. measures

our Morris I over call Chief to will and Officer, turn now Chairman Executive the Goldfarb.

Morris Goldfarb

thank joining you, Thank you, everyone, Neal, us. for and

For bottom line delivered our building excellence. and These ahead disciplined our of our commitment our well results to net line guidance. with operational unwavering first brand sales due results expectations to in and quarter, are we

our achieved Leveraging our strong products opportunities strengths our the long-term we profitable team strategic see advance to day our dynamic our demonstrate environment, on best-in-class continue as Despite of who agility design every priorities. and focusing across sales I'm a and team, and by collections. we growth resilience for of proud we merchandising innovative assortments and challenging business. consumer

approximately AWWG, Ortega. With the a Catterton, announcement to MX XX%, further own results, over time. of provide of ownership and for we primarily owned L morning's million. premier by details investment, generating global this our founder, a review quarter we'll company By an first have look some interest expand XX%. and brands, to close I me group $XXX is this to just Carlos we portfolio Before ownership revenues of our fashion AWWG year-end, and partnership platform with international Group, expect on let over

team, Hackett, points become With XX and sales AWWG bring will for They Spain Iberian manage initiative Karan European and of an Portugal. our management and and well and also strategic our Lagerfeld, our a understanding strong product aligning Pepe globally brand With of European business agent well the has presence as for Karl infrastructure and are Jeans DKNY to and management operational a of owner in Façonnable the partnership, over PVH. countries. expand Donna excellence, with the AWWG, They presence. as across X,XXX

market. in our in that that their secure AWWG a as more our benefit for Further, in of world. and fastest-growing we has our partner strong in DKNY foothold America best-in-class believe other a meaningful brands. fashion the brands can markets capabilities operational leverage the one expand presence them here India, to from North We They to

will team to also to company our AWWG's the seat leadership help forward the hold look and leverage strengths. collective Board advise working to We on one with

businesses. our Our of investment will expand both

be to accretive investment from this start. expect We the

well compared points. basis review quarter our with expectations. year $XXX The in per the Gross earnings Net financial let's compared gross margin brands. share rate and Now brands the million diluted expectations. for rate last results. margin $XXX higher ahead and Non-GAAP to for PVH line last our XXXX our $X.XX expanded sales first of our year million quarter is $X.XX substantially own than to was XXX were

approximately good position, in from XX% quarter. last remains year's down first inventory Our

We weather, ending very we revolving increases with maturity announced the strong we're remain a in we this the our As position, billion. season the sales financial to availability Lagerfeld. Despite cash challenging by facility. have strong upsized of quarter in morning, and the $X and extended double-digit and credit pleased in first was spring date. Performance with driven approximately quarter selling Karl of DKNY

needs of our the the wholesale by in business. meet reinventing in of is to continue our We our customers ever-changing which performance omnichannel strong capabilities, reflected

our both Karl with seeing increases. DKNY North is we're retail business stores underway, transformation gaining double-digit American and Additionally, and Lagerfeld traction Paris strong comp

of remain Hilfiger. Klein Growing the core of continue to sales the portfolio ours, and penetration capability approach brands is a sales approximately for track go-forward as to XXXX we fiscal of of and full Calvin we Tommy for net on our total reduce XX% our

choice is have make execute design stores clearly of overall new in allocating launch X,XXX right as and best-in-class field through teams, categories our This to are the evident as purchasing the retailers development product for expect time. our retailers better retail businesses a product our and investments supporting us capabilities dollars in right evolution merchandisers, This who deliver our our confidence department partners and Our marketing, by of at and differentiators add G-III. These to over expand points brands. space to are partner brands key count and at door fall, significant floor we across their to go-forward sale expansion. we ability

have into scale these continue which businesses. directly growth translated we efforts sales as These to we expect

resulted of our focus and sales exceeded visible in have on our increased largest our most own part investments in which brands, our marketing As have that global made we and expectations. already interest

campaigns equity, and amongst Donna a increase excitement drive long particularly residence create brand accelerate These equity. strong and invest continuing for to reenergize further We're to brand marketing plan in supercharge term. consumers. to meaningfully and the already Karan, sales serve Our established brands, momentum

our As expanded our new date. XXX launched the significantly are double Donna are to it which doors mentioned, along expectations. extremely season Donna in investments Donna and better which floor been counts updated and successful margins retail relaunched than retailer previously making higher other received brand, Karan well fall. doors average, about Karan's to are XX% Karan our and reserve We're expanding over to sell-through AURs exceeding collection, to On with immediately, partners pleased about and accelerated designs, most space. in see have date. Almost our the higher, new launch door has their digit businesses, We we with XXX incredibly an fragrance website

iconic relaunch this was the story a to fashion, of Carolyn brought Evangelista, the resulting biggest significant powerful Linda with and names renewed marketing than legacy life engagement. some marketing mentioned, $XX Murphy, earned Crawford, value in consumer Karlie of with campaign Valletta including equates brand's more Amber the back Kloss, impressions As which Cindy industry to relevance. in by billion and and drove The million X.X supported

to in-class working currently initiatives better expand We're into several categories partners. licensing to on through complementary

see supported expected opportunities new of by licensing this by the and Inter visibility further This This attracting business with grow is many launches. to audiences supports to Karan. globally. Donna business Our important the for beginning. fragrance Parfums wider extension brand double just ahead strong digits, is We world

help right well younger of DKNY we is believe capsule boutiques. DKNY the further as the This globe, and York and is DKNY and to In New well our billboard, featured brand In is media the delivered events and pop-up freestanding space TV and this enhancing our our the reaching series on launched broader with as we're audience DKNY a further excitement in established Rinascente, younger expansion reestablishing now New as brand deliver relevance other Harrods brought and engagement capsule social key Zalando April, Europe. to European as the a the fresh affinity China. The We're by the creating accounts. more York growth events, Korea in Yankees. evaluating elevated increases DKNY quarter brand reinforces excitement with especially prominently featured across repositioning DKNY's energy channels. in which social through driving and around field broadcast strong collection brand's We're key double-digit visibility with across partnership our brand and marketing quarter. energy boosting stadium visibility Asian activations, well globally. We Heart exclusive market. growth platforms her at as opportunities audiences the lifestyle who and in brand international Gerber, spring which wholesale on awareness the accelerate broader shops Kaia double-digit in Asia, La DKNY driving of amongst us dedicated a are featuring and the this long-term and engagement. newness and pleased

featuring Sustainability by some partnering category and separates is included grew with incredible North Olympic the cutting-edge sustainable out start across in basketball, the for leather this a like buzz categories Karl for in sport continues latest build entry points America the fall to a in doors -- We in introduced prominently In collection launching Lagerfeld. new created sports alternative. which XX% This approximately summer, XXX launched and will collaboration The capture truly we year. quarter, department dress America. Globally, of of year's of better with points Lagerfeld X-on-X store reach this suit X,XXX Ambassador line. further into Karl collection expanding to the category, almost by and wholesale the brand the Karl the brand's Lagerfeld of lifestyle being from through our of bags new just space Amber North be MIRUM distribution grow with for XXXX the the new distribution jeans games. recently new a now will total Valleta, markets in resulting we featured

our week. September a flagship store. -- tournaments host career a We called Paris chronicles of will Lagerfeld our Lagerfeld. several product our please Street fashion be tomorrow revamping collaboration series And in the with store playoff that on releasing Hulu Becoming London's for concept this fresh just for designer, series the Karl time lookout many global and launch Karl Regent in in sponsor this athletes also early legendary iconic We're on

of of lifestyle continue licensing and and the the We power the the incremental appeal extend name brand to revenue. Lagerfeld while international Karl to awareness leverage delivering

luxury Lagerfeld's East. estate Middle will the villas Heart The be of launch in project Karl of inaugural Dubai, in Our real

opportunities categories, in launching we're licensing an additional be in on Additionally, July. and fragrance capitalizing we'll key

expanding focused lifestyle product and on Club categories, remains extending licensing opportunities its its Vilebrequin Beach concept.

the a Club and During store opened Vilebrequin Beach Abu Spain Palma, in Dhabi. third in a quarter,

drive to experiences, expect feature Beach upon our build Club this We summer. shops which and continue our to business

into new Beach to and over profitability products in sales new categories Club pleased heading developing the with and Since peak improvements the selling date. are [indiscernible], the taking for We season. existing we're

jeans consumer response Spring The We're our beach clubs Club have able been our Currently, to stages in opening and collection Nautica, develop to a time. from to with in over lifestyle fall. of collection of locations outerwear next broad looking outerwear. we'll exclusive Halston, to XX over of categories new Beach has retail projects additional and partner-operated Nautica Champion various forward positive Champion hitting and Halston progress years. We've are our been our in X making this global expanding range toward quickly opening floors initiatives the goal X be we

Donna have we net brands, together Vilebrequin Karl rest with the these brands, go-forward fiscal new our and resulted launches, portfolio sales last Our sales Karan, see potential. Lagerfeld with runway. DKNY, billion year, our and along $X in In long-term a billion net the tremendous in of $X.X

infrastructure AWWG a Additionally, sizable opportunity represents from revenue perspective. a international and

have of acceleration and strong organic our opportunities. ahead between new the brands We growth our

we utilizing strategically a data-driven fiscal XXXX, conclusion, solid expectations. brand have brands beat and profitability that start the our to our our approach non-GAAP health. year to in In while We're a controlling invest to delivering drive long-term earnings controllables

range to ahead, remain under expect optimistic. and be raising earnings while cautiously share consumer $X.XX top that the remain will per diluted reaffirming believe We're Looking guidance to and our in now we environment to line $X.XX. continue bottom line of the pressure

us record objectives, flexibility including own strong invest of making track our success proven We're in of many the progress business. Donna sheet results brands, performance Karan. successful gives on DKNY, our ample and delivered Our strong of balance Karl and our Lagerfeld to of outside our through good relaunch

the AWWG, the reliance for announced our on retail segment. international and PVH turnaround Our brands partnership accelerates with expansion, our which the plans reduced

We long-term and our the expand beginning. that just to is opportunities confident significant have I'm business this

as to fiscal Neal pass I'll first discussion XXXX outlook. a now for quarter the our well call of as our

Neal Nackman

$XX year expectations. despite $XXX in sales were closing in in the of sales XXXX our $XXX the Net million quarter, compared last Net to segment to compared previous period to ended year's quarter doors. net first in last compared $XXX year. million sales the $XX for of quarter Thank wholesale for with million line and Net segment same million Morris. the of of million the sales X million XX, April our first our were you, $XXX retail were

XX.X% Our compared quarter gross to gross to The XX.X% fiscal was comparable in of previous year's percentage XX.X% was in XXXX XX.X% compared year's margin the margin percentage quarter. in last first the wholesale first quarter. segment's

through percentage margins year's segment to gross drive in previous XX.X% our a retail were $XXX first and to to combination period. Non-GAAP product XX% was in the continue of The million in higher-margin margin We expenses quarter. our brands compared operations growth $XXX compared mix. go-forward gross SG&A of year's the million prior

we for the Donna expenses expansion recall, a the and for quarters, and marketing higher line through year, to marketing spring Karan operational marketing with investment third you this The first the guided expenses DKNY, primarily in As X had our and of in associated weighted investments. and capabilities talent with the are and campaigns. technology

While expenses we they had quarter, first slightly up than are marketing in the planned. lower were

was were our offset of the from some operations addition, by shift In the better-than-expected quarter. a in warehousing first These inventory efficiencies increases spend there second to marketing driven management. quarter disciplined partially by

share to $X.X or first in results in previous the were SG&A. million efficiencies quarter the our year's $X $X.XX expectations, first share diluted compared significantly than diluted by gross per per for driven improvements net quarter. margin in Non-GAAP our was better and These percentage income $X.XX or million

Turning to the balance sheet.

We million. Inventory to the to the decreased $XXX quarter year's good XX% respect end to levels. inventory million the from progress $XXX at of continue our make previous with

of first inventory year's of is debt swing net a prior cash primarily a This large the in future inventory from decrease a million which We net to flows debt a Our operations, our in the the $XXX position ended with of compared position a quarter net sales. from aligned well to position $XX includes are with net million cash levels. levels cash approximately quarter. result

During the reflected our our approximately quarter. be very billion second bought in strong will quarter, financial stock. remain a position of our The liquidity. $X $XX back of in million We AWWG in with we of cost investment

our with million. we extension extension As our from $XXX and morning, in strategic of capital credit facility upsized business $XXX asset-based pursue flexibility and to amendment we This announced further this opportunities. revolving have our an invest further solidified provides million structure additional to maturity X-year

As and the are remainder the our optimistic first results fiscal we guidance, about for with pleased quarter our cautiously remain year. of

For approximately own billion, the net guidance to of of year's the full and new driven a X% initiatives. our launches growth of reaffirming we compared our XXXX, are the $X.X sales approximately year previous brands fiscal net sales, by

to this Importantly, is Tommy decline. sales Calvin Hilfiger as of happening growth continued Klein and

approximately total of our XXXX, portfolio we to to our continue sales fiscal For go-forward of anticipate represent XX% net sales.

a both reflects brands the reflect rate guidance to which to are the income diluted a growth in sales existing launches. On organic to compares raising we non-GAAP $XXX attributable diluted new fiscal of or or fiscal half $XXX second million between XXXX per million and non-GAAP growth, The as per $X.XX our guidance planned our and higher basis, now $X.XX is our outperformance expect go-forward well as of our of $X.XX between and first XXXX. $XXX for quarter net share This net for share. income million in

million compared million to in XXXX. adjusted and $XXX fiscal expected to $XXX of $XXX be million XXXX adjusted EBITDA between Fiscal is EBITDA

approximately expenses Karan as talent DKNY launch marketing to drive million, as expect primarily to support the and expenses engagement operational of mentioned, to previously brand incremental our we in Donna capabilities. continue $XX further for of investments As and technology to well expand related

the approximately of million of fiscal $XXX sales For year million the second $XXX in of to XXXX. we compared quarter expect XXXX, period same fiscal net

for million XXXX of of $X.XX XXXX. share $X.XX share diluted between and This net non-GAAP in per million per fiscal non-GAAP the share. and income $XX expect diluted or be per to $X.XX net to between or We compares diluted $XX income second million quarter $XX fiscal

provide me some context additional modeling. Let around

the to the previous margin the not as but be to much we gross quarter. up second gross as quarter, compared expect rate the year, as margins for first for As

sales quarter, gross For including of greater we margins brands. as the mix of down result third to expect of our a be a licensed programs, the of concentration

to to So fiscal last be continue taken rate expect we together, we similar gross year had fiscal quarter, margin noted XXXX XXXX. as year full to the

expected in the the investments make of skewed line campaign with be higher the to our to third marketing full with and several long activations. for continue related marketing plan, to support growth quarter, spend line in Regarding previous with term the in future we SG&A, business the our

million. new capital driven years, of $XX for launches We is approximately our and new expenditures higher the shop-in-shops continue spend principally by previous brand to build-outs support to of than in This expect our our technology business.

will We of our turn in are for XX.X% closing not concludes and remarks. estimating future I share potential my anticipated tax rate call for comments. XXXX, any to back repurchases a fiscal the we have now guidance. That Morris

Morris Goldfarb

for as us continues partners in take many and organization, Neal, confident we're our support. Operator, questions. joining team I'd future thank ready in you to for to of you, and global fashion. the continued Thank achieve their I'm what our our today. leader like stakeholders proud also all to thank now and a all entire G-III's some

Operator

[Operator Instructions] of And with line our Markets. from Capital the coming first Ashley question Owens KeyBanc

Ashley Owens

guess on well. just I few Karl, by DKNY up relative Karan little in your expectations there to or was that own expanded Donna good that brand as that there's with holding to the maybe response top Is the these price are brands? and soft line. already anything of maybe brands, heard been from Macy's from We category Macy's other start resistance came a distribution a offset a perspective

of what all? the shift just hoping you X guys terms market the could second, in out past seeing the And order level X, to in book of been the at then there's if any speak today and comfortability you're with in months

Morris Goldfarb

your Thank question. you for

we're exiting. think are no a I including Calvin They're that are and which all Hilfiger can't that well. doing Klein, all well. brand, Our doing Tommy brands -- of there's brands

on the launch Donna of brands, much Tommy, Lagerfeld, include larger Karl pretty Calvin, which Karan. business our Our DKNY,

working. progress or I sales a they're cite disappointing the in of our brand for all private Some can't label initiatives, future.

a seeds We're good in we're of seeds garnering new past, So areas both working. are we're for planting the the really the space. and future and

order and book, door the of new fine. than with will quarter. We're in a we've As order is think the Donna Lagerfeld for think what's -- maybe expansion the Karan production line for order chasing our catch demand happened far that Lagerfeld book little the and came historically. Donna for grow, our as with licenses and on our maybe our created expansion and I as count the We're little Karan, Halston, My book faster a bit fourth view in it's Nautica is, Champion Karl we Karl I door we expected. exponentially

trying the with our we're order So our book to more production match expansion will coming be that in obvious months. And demand. believe the I much

Operator

of our line next the Gaertner And with coming question Wells Fargo. Will from

Frederick Gaertner

Great.

expand Just It it different this just wanted -- in quarter? guys in guys to guided light. you about Ashley ask the came was drag in maybe was -- the I on asked. way, what $XXX guided what mean, XQ Can a you million. you little what talk a

Neal Nackman

sales we Well, where have approximate of be. an range Yes. look, we to expect

we course, quarter our sure at And wholesale a the that the business orders happens to XX that I'm have of would lot Of easily in with few could them. end activity that with of earlier. hours of been came ahead a always beat this love very

business comfortable top we the for came very the were line. in in very we as with order see we what book rest as We're what where comfortable So of line. the far and we again with top see

Morris Goldfarb

transit that the about were have QX. conservative the its amount talking altered that that inventory slightly way at in finds possibly are they'd times quarter. end with We're the with, levels We're dealing of dealing that with small relatively to retailers like measuring a into

an pretty as that, it's we're we and where exact know, up. pleased all with of science, So not wound you

Frederick Gaertner

like a where half And just it. it's on the ramp XH. second in looks X, pretty you guide, substantial are it from Got

frame you pipeline like the giving sounds some confidence? expanding what's can distribution. you It Just have you in launches

of can half? hit into when you confidence frame mid-single second out sort digits backing to Just of gives of I'm what sort sort you that

Morris Goldfarb

thing It's to that referred question. the last I just pretty same on much the

occur every givebacks year much We're businesses this We merit by of good. little are and pretty year. bit not the and The really Those following retailer. a have losing occur Tommy door next with Calvin. not expansion they year, anything

our in extent the embedded to a is So stable. stable can planning and it be

the of a our All our that Calvin brands and good sell-throughs new the pretty and showing much projections. Tommy strategy are deal the and launches own business of are and strength. growth supporting our

Frederick Gaertner

squeeze more. I if Maybe in one could

on Just expansion. maybe a that little provide color

I expanding gaining I you're What distribution. more taking space X,XXX space are think around If that. to could you you you in? of mean, some shelf mentioned you points color from? who are give channels shelf

Morris Goldfarb

some honestly, -- our in taking We're We're some might label expanded the brands. you have a not that guess, initiatives with quite some own space we taking now private bit, of I our pricing of space some shelf And our has space sales power from and of brands. our expanding say have that with pricing own accounts. become little our

is big So deal. the ticket requirements a space for XX% not more

average the ticket. So Karan unit is XX% higher retail on Klein Calvin the than Donna

So And able conservative. great we with similar We're that inventory. our our space, vendor take more markdowns. not our sales. We We the the to comfort, were a aggressive extent selling to our monitor inventory well. we what's can and in there budget managing We is if partners. we're cancel house with

comfortable putting we're -- with out we're there. it's So what

Operator

line Mauricio of coming Our next the Serna UBS. with from question

Mauricio Serna Vega

like the -- much seems it the more could that you're a in talk this to like how go very do about partnership about could Maybe in Where through like you is new about you partnership? I'd could currently? Maybe the ask business First, little European remind with think you and us Europe excited AWWG. opportunity India. it bit

lot or a go-forward on them margin between have the brands just differential remind to could just margin, and gross a you brands like much PVH how go-forward. of wanted it of was then understand, like us seems Like essentially it mix brands? I by the on that driven your just you to licensing And and gross

Morris Goldfarb

question, and to I'm going then to second I'll your one. let back to the respond first Neal come

Neal Nackman

Yes.

and licensed the lift about be brand the to simply, to X% runs we've owned margin. for And got for and brands course, that's that an really that brands. we Mauricio, course, royalty, tends on licensing between the grows, see own gross of the incremental then, X%. that, stores, our And drops And income. our dollar So dollar royalty of to differential extent

operating of for much things those So provide both us. gross margin then healthier a and margin

Morris Goldfarb

to and in the initiative AWWG in the So distribution Europe. response

We we cited currently, approximately if have Lagerfeld, somewhere conquering European stake $XXX last -- we stages. back of and have you And -- think go-forward around told, a step Karl AWWG. DKNY Vilebrequin, between we've as the its is couple go years, distribution have equity all I of one big of our in growth early us. We've this major an And in for is taken opportunities Europe. million

equity growth We little it about be the three will their stake They million European equity contribution, and sales, dominant they're double that ability a days, all. we buying do a of think with of more And bit current we will believe, grow distributor very have in important I the our brands. XX aggressive. stake, $XXX about in

more little because business a Our of the the reviewing overall. all sourcing, be sourcing seems to opportunities. our bit of We're competitive scale

great best-in-class operating major opportunities high well centers focus that a There's as path a We're outlet cited Europe, the with door focus as as locations. we've count primarily additional on of down which street rationale a the is team. going in in both Europe, digital opportunities additional sit in acquisition. intensive main It's for direct-to-consumer as this well a in that

with AWWG. have leaders We people our of have the pretty of had long a some history --

is than the better a stake. ask They're Catterton the for and majority make You we're mission have holds L partner team They to aligned. Their aggressive. and mission. a can't that money,

in see step Europe. mission conquering forward just I major a think of we our

Mauricio Serna Vega

Donna on brand the -- your thoughts aspiration the well And But talked that the much how Karan. you is helpful. I and think contribute we it follow-up then seems just -- for revenues? could Nice. long-term a this Do very know that on you to year's Really expansion with about quick brand. doing really It partners. have any

Morris Goldfarb

something the we produce, care ability where demand, -- that than goods on produce We're initiatives revenue, our how do. we choose. production year's piece demand We're on for to no. to production greater -- don't the careful we is is service this So chasing new the the we

there's and little time, and hardware items of first good a longer takes to on For develop that for a our service. focus many pretty

we So see next taken the supported It's all steps by brand a in all position and has right coming team the year. space. just to the that initiatives killer year the our

so We the took it that archives Calvin getting is Donna that product. is today. that double that and his Donna. designed, The team it, are that Sammy command that And XX% so at at we're and incredible. the But produced, brought and well if by Aaron market retail for the -- delivering. We materials well view to review is we're the I is consumer think value created than we fabrics product time unimaginable were product the the might brilliant supported you point to look well getting could price Donna Karan so that chosen just the team as in higher

spend, deeper. and little And we she her it she'll and finding -- to we're only to retail immediately. the wants We've X we're and of cautious. Historically, evident excitement sees create -- dollars consumer venue into give what amount believe a dig Karan. our that around in were a So consumer that brought little a for it, touch Donna up all walks has points a clearly of

Mauricio Serna Vega

the results. on Congrats

Operator

And with Kearney the our of line next question Barclays. coming Paul from

Paul Kearney

being Can significant billion long-term trends growth? a wholesale? And doors you that talk number is secondarily, of Can how you $X And see the talk about next door opportunity of seeing expanded. new are at you you year evolving brands? that then cite, into about you're that much there sell-through how your for

Morris Goldfarb

Let in door stores sale. me We're Department more clear of not not doors. department that new categories. points stores multiple growth. finding up. the finding It's new within space It's are not We're growing. new

you So immediately almost you Donna in can similar. the find a points of when Karan, sale launch door, dozen when every launch Halston, you

So new initiatives sale. about are all points the doors. not They're of of brands, all the about new

we that if in sorry confused refer of I'm you sale generally doors. any So we've points to not degree,

the for decade same department we're European least so, and brands expanding typical that or for The consolidated doors. new and cultivating Bloomingdale's. where for a Macy's historically we and the working of designer us with do expansion. new global not by me We're whereas Those what are opportunities collection our And doors stores are within space. We're Belk it into new doors hard multiple classification, and last locations by we're Dillard's they've at highlighted in overseas, and or do. finding are sale of European points multiple doors creating as at

So we're bit in Europe. succeeding America little of to bringing a

So still back that right. product, love is -- have We our that we the we're appetite your South to couple good I came And news going of do and and entire that's I our line the seem there. over sorry. plenty years. And respond we're bottom gotten help for just to question? that there's fixing Or dramatically to the there South is Korea wrong from is Korea, next a... the more merchandising way I'm Did

Paul Kearney

that saying wholesale of how the progressed quarter. kind as and what Yes, through trends you're at sell-through

Morris Goldfarb

is before, have not there. seeing our mature brands We have sales real our penetration of average like The a Donna seeing That's it our But mentioned inventory the highly or -- make there's of gone outselling being brands I good as that good The true than moment. we're last the have. better is it No highlights. more doesn't unit promotional. money. partner. And Karan some out for retails turning when other retailers news year, up which from is retailers not news. We're

scale So Donna our up can't will new wait until good That the be day. in a initiatives. Karan we get and

Operator

line Advisory in of Telsey question queue Telsey last our And Dana with the from Group. coming

Dana Telsey

the see to progress. Nice

are What Morris, obviously, the about the the Donna whether positioning, you the with and handbags off As it right it's seeing portfolio, seeing rest you year? of go Karan, of the as it's Lagerfeld, I've in spoken Macy's when other escalator, think apparel. get Halston, how Karl you or great are the Nautica, through in we've those brands, in seen we whether progress you

get a you better is helping driving And then What innovation and today's there brands? or just are when it newness you you think does AUR? seeing your trend, see demand? And from about deliver

Morris Goldfarb

for our fit. locations Dana, thanks So thanks of question, where products and citing your for the

department it's hard a order. the have to most behind the be, by entire We it's of store all are being not cases, bathroom, location fight visuals We for thinks the and whether an maintaining team near We're the look be can you hard like what we in space. know satisfied battle of the or the very stores. going an location succeed We escalator there. where for not a whether appropriate simply build-out, want that, product fighting given to within everybody

is the we assets that One of merchandisers have. field best our

traffic product us the looks. several this They're report of inventory. much total visuals so that we managing day staff We disarray. that the have They every department helping million on We're our end a payroll. the how location and year field spaces There's doing people, assure spice trained the on We the the job. us. in not merchandisers $XX our in probably They're but inventory stores. if the by they it's spend and we're position. are are is We're the of job. is and not that up at stores worth doing and in hundred our And not penny. not And department of to improving us. retailer, only right of They in the appearance the

for So that locations. will go

where size other question sourced North effectively, America and better close the great on the sell-throughs. of honestly, we've Karl progress many in Lagerfeld better We're charts. your improved cases. in is As our quite year, far more that product, design. on brands, prices We've off of to to at double going probably and business We've got this as added the

or to build which the path important of to our build, be to market. the iconic of believe, designers is could -- a come that thought premier world brand of you you I as a on little era of we Hulu. taking is to by not funded out we're starts we Disney one solid world what more a any the going hopefully. choose this Karl. Karl, Saturday, couldn't but So designer I and see the series, on We're series bit have that, comes seen

movie So that impediments little as held a with some I coming add-on and believe. The there's behind I not thought. Jared for hopefully, rider within that's quickly And another Leto bit, movie XX other have back months, us. next strike we but another it, as an the

on of that's following Karl. lots stuff So there's

have paid is about editorial that an lot We a of Karl. not an There's a written editorial marketing. day not

the within on the well well. So DKNY, kind the got team today, well success team brand. the European as love supported it's collaboration clearly brand design. the is we've We clear we on America, the joint on script. And second sourcing. love as integration way brand. DKNY its the There's brand. had runway, the some that in as North team incredibly In categories of of It's the we of to important path the design hate Today, stage the well. and brand. globally. most sell-throughs underlying design of a the American wrote and DKNY, DKNY picked pace is We is plenty And believe the we're up ups early and and marketing working we in done working all

not I'm hope too So getting worry.

We have manager. monobrand a not -- we're

have We about. talk to lots

in that, we a We investors it's got where to strategy again company we of a you're simple We've puzzle. point the happier them you that's be look to We've us the of the not the you wish your demand. are a we're couldn't look today. your into call you grow. to -- investor in levered pieces a There's sitting of we're for in got a are highly capital as for We're spot. Dana, that demand waiting kind September. as have all on speaking we're sidelines -- from at fruition. And -- view with to seeing at question. in We're retailer a all. we the understanding lots great thank of come I money forward Hopefully, for well in or our day, Hopefully, And and deal, point good to view. high as company.

Operator

for Ladies participation, disconnect. may for all you today. now concludes Thank and our and your you conference that gentlemen,

G-III Apparel (GIII) 6 Jun 242025 Q1 Earnings call transcript