G-III Apparel Group, Ltd. · NASDAQ:GIII
G-III Apparel — Q1 2025 Earnings Presentation
43 slides from G-III Apparel's earnings presentation, Jun 11, 2024
Slide 1: G-III Apparel Group
Slide 2: G-III Apparel
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Slide 3: A Global Leader in Fashion
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Slide 4: Who We Are
WHO WE ARE We own and license a portfolio of global brands. With expertise in design, sourcing, distribution and marketing, we bring excitement and confidence to consumers through the fashion we create. 4
Slide 5: G-III at a glance: key facts and figures
$3.10B 600+ 8 GLOBAL REVENUE RETAIL STORES COUNTRIES WITH OPERATING OUR GLOBALLY * CORPORATE OFFICES FY 2024 * Company and partner operated stores * $4.04 $75M 8 RETAIL WEBSITES NON-GAAP (DKNY, DK, KL, KLP, LICENSING REVENUE VBQ, BASS, WILSONS DILUTED EPS LEATHER, SONIA RYKIEL) 30+ 1,200 3,500 BRAND
Slide 6: Our Brands
OUR BRANDS 6
Slide 7: Our Brands
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Slide 8: Our Brands
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Slide 9: Our Brands
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Slide 10: Key Milestones: 65+ Year History
KEY MILESTONES: 65+ YEAR HISTORY • G-III has transformed its business from a niche outerwear manufacturer to a global leader in fashion • Continual evolution of business model with an eye towards the future to drive diversified growth 1950’s 2000’s 2010’s 2020’s FOUNDING BUILDING ACCELERATING EVOLVI
Slide 11: Foundation for Success
FOUNDATION FOR SUCCESS High-performing, Unparalleled Significantly forward-thinking Merchant expertise Diversified expertise across developed sourcing team and in product distribution network categories to deliver and supply chain experienced senior development lifestyle collections infrastructure l
Slide 12: Experienced Leadership
FOUNDATION FOR SUCCESS EXPERIENCED LEADERSHIP • Demonstrated track record of delivering strong operating performance through brand-building initiatives and ability to navigate varied business cycles • Average executive tenure of 21 years Morris Goldfarb Sammy Aaron Jeffrey Goldfarb Dana Perlman Neal
Slide 13: Values
FOUNDATION FOR SUCCESS VALUES ACROSS ALL AREAS OF G-III, OUR TEAM IS: • Passionate about Our Product • Entrepreneurial in Our Thinking • Proud of Our Partnerships • Agile in Our Execution • Accountable for Our Results 13
Slide 14: Merchant Expertise in Product Development
FOUNDATION FOR SUCCESS MERCHANT EXPERTISE IN PRODUCT DEVELOPMENT ACROSS A DIVERSIFIED BRAND PORTFOLIO • Introduction of new brands and growth of existing brands enables G-III to develop scale and capabilities that can be leveraged across the portfolio ASPIRATIONAL & LUXURY BETTER AFFORDABLE 14
Slide 15: Expertise Across Categories to Deliver Lifestyle Collections
FOUNDATION FOR SUCCESS EXPERTISE ACROSS CATEGORIES TO DELIVER LIFESTYLE COLLECTIONS • Capabilities across women’s and men’s product • Proven track record of expertise, having significantly diversified from outerwear to a broad range of other categories over the last 20 years 2005 2024 OTHER DRESSES
Slide 16: Diversified Distribution
FOUNDATION FOR SUCCESS DIVERSIFIED DISTRIBUTION STRONG RELATIONSHIPS AS A VENDOR OF CHOICE ACROSS CUSTOMERS AND CHANNELS DEPARTMENT DIGITAL PURE OWNED STORES INTERNATIONAL LICENSOR SPECIALTY LUXURY STORE PLAY + WEBSITES PARTNERS* OWNED OFF-PRICE RETAILERS Middle East Asia Europe Latin America * Dist
Slide 17: Significantly Developed Sourcing & Supply Chain Infrastructure
FOUNDATION FOR SUCCESS SIGNIFICANTLY DEVELOPED SOURCING & SUPPLY CHAIN INFRASTRUCTURE • Diversified model with best-in-class partners and continual expansion of capacity, capabilities, and countries of manufacturing • Scale and nimble infrastructure ensures preferred pricing, speed to market, and mi
Slide 18: Strategic Priorities for Growth
STRATEGIC PRIORITIES FOR GROWTH Further expand our Expand private portfolio through Extend Drive our Maximize label and sourcing ownership of brands our key brands omni-channel services for 3rd and their licensing global reach across categories opportunities party brands and opportunities retailers
Slide 19: Expand Ownership of Brands
STRATEGIC PRIORITY EXPAND OWNERSHIP OF BRANDS • Generated net revenue of ~$1.5 billion in FY 2024 with highest profitability compared to licensed brands • Extend reach Internationally and into lifestyle categories through licenses • Continue to evaluate future opportunities PORTFOLIO & CATEGORY GROW
Slide 20: Brand Extensions Through Licensing
STRATEGIC PRIORITY BRAND EXTENSIONS THROUGH LICENSING • Broadens reach to consumers through a full range of lifestyle categories •Category expansion, experiential, global store partners •In FY 2024, ~$75M royalty income stream •Strong licensing capability for owned brands with best- in-class partner
Slide 21: Experiential Licensing
STRATEGIC PRIORITY EXPERIENTIAL LICENSING •These concepts are unique ways for fashion brands to drive consumer engagement and fuel brand awareness • Karl Lagerfeld hotel in Macau and Malaysia and multiple luxury residential projects in the works •Vilebrequin beach club in Cannes and multiple other p
Slide 22: Extend Our Global Reach
STRATEGIC PRIORITY EXTEND OUR GLOBAL REACH • Continue to build a strong global platform for growth to enable expansion with current and future brands, including Donna Karan • 200+ company and partner •~165+ company and • ~195+ stores (company and operated stores internationally partner stores partne
Slide 23: Drive Key Brands with Emphasis on Owned Brands
STRATEGIC PRIORITY DRIVE KEY BRANDS WITH AN EMPHASIS ON OWNED BRANDS • Track record of developing brands quickly, having created significant scale in North America and now expanding internationally • Acquired in 2016 •Acquired remaining 80% of Karl Lagerfeld •Acquired in 2016 brand in 2022 • GIII ha
Slide 24: Drive Key Brands
STRATEGIC PRIORITY DRIVE KEY BRANDS • Track record of scaling brands quickly, with most pronounced expansion over the last 8 year •Acquired first license category in 2005 •Acquired license in 2016 •New 20-year license for North • New 25-year license agreement for all America begins January 2024 prod
Slide 25: International Expansion: Global Net Sales Potential
GLOBAL REPORTED NET SALES POTENTIAL CURRENT PORTFOLIO OF GO-FORWARD BRANDS • G-III has built a strong corporate foundation • Proven track record and diversified foundation enables G-III to acquire or license brands • Enables G-III to grow current portfolio of brands as well as newly acquire or licen
Slide 26: Digital Sales
STRATEGIC PRIORITY DIGITAL SALES • Grew total digital sales by ~15% in FY 2024 • Strong presence on retail partner sites including department stores, specialty stores, online retailers and marketplaces • Building presence with pureplay partners including, Amazon, Zalando and Fanatics • Continuing to
Slide 27: Grow Private Label Business
STRATEGIC PRIORITY GROW PRIVATE LABEL BUSINESS • Brands and retailers benefit from strength of our overseas sourcing operations • Hired new executive tasked with development of private label business • Incremental revenue opportunity leveraging already existing capabilities and platforms PRIVATE LAB
Slide 28: Business Update
BUSINESS UPDATE 28
Slide 29: Q1 FY 2025
Q1 FY 2025 29
Slide 30: Strategic Accomplishments
OPERATING RESULTS - Q1 2025 STRATEGIC ACCOMPLISHMENTS ● We had an excellent start to FY 2025, delivering strong results through outsized performance of our owned brands and positioning G-III to capitalize on the many long-term growth opportunities ahead ● Donna Karan relaunch has been extremely well
Slide 31: Recent Results: Q1 2025
Q1 2025 RECENT RESULTS ($ in thousands, except per share amounts) Three Months Ended 2024 2023 (Unaudited) Net sales $ 610 $ 607 ● Non-GAAP Net income for the first quarter was $5.8 Cost of goods sold 351 357 Gross profit 259 250 million, or $0.12 cents per diluted share, compared to $6 million, or
Slide 32: Recent Results – Balance Sheet Highlights
Q1 2025 RECENT RESULTS – BALANCE SHEET HIGHLIGHTS ● Inventory remains in a good position, down approximately 24% ○ We continue to actively manage inventory levels, ($ in thousands) At April 30, At April 30, 2024 2023 which are well-aligned with future sales Cash and Cash Equivalents $ 508 $ 290 ● En
Slide 33: Fiscal Year 2025 Guidance and Strategy
FISCAL YEAR 2025 GUIDANCE AND STRATEGY ($ in millions, except per share amounts) • We are pleased with our first quarter results and remain optimistic about the remainder of the year ● For fiscal 2025, we anticipate: ○ Net Sales for fiscal 2025 of $3.2 billion compared to $3.10 billion last year ○ A
Slide 34: Q4 FY 2024
Q4 FY 2024 34
Slide 35: Strategic Accomplishments: Fiscal Year 2024
OPERATING RESULTS - FISCAL YEAR 2024 STRATEGIC ACCOMPLISHMENTS • FY 2024 was an important year for the Company, as we accelerated our long-term priorities and quickly developed new opportunities as we transitioned away from the Calvin Klein and Tommy Hilfiger brands ● Sales penetration of the brands
Slide 36: Recent Results: Full Fiscal Year 2024
FULL FISCAL YEAR 2024 RECENT RESULTS ($ in thousands, except per share amounts) ● FY2024 non-GAAP net income per diluted share increased 42% to $4.04 from $2.85 in the prior fiscal year and was above our guidance o Second highest in company history ● Net sales were $3.1 billion, compared to $3.23 bi
Slide 37: Recent Results – Balance Sheet Highlights
FULL FISCAL YEAR 2024 RECENT RESULTS – BALANCE SHEET HIGHLIGHTS ($ in thousands) ● Inventory decreased 27% to $520 million, from last year’s $709 million o Made strong progress rightsizing higher inventory levels carried over from last year o Inventory levels are now better aligned with future sales
Slide 38: CEO Quote on Growth and Evolution
“We have grown and evolved significantly over the past 50 years because we lead with an entrepreneurial approach and value relationships. This proven formula will drive G-III as we enter the next phase of our business.” MORRIS GOLDFARG, CHAIRMAN & CEO 38
Slide 39: Appendix
APPENDIX 39
Slide 40: Full Fiscal Year 2023 P&L
FULL FISCAL YEAR 2023 2023 P&L ($ in thousands, except per share amounts) 40
Slide 41: GAAP to Non-GAAP Reconciliation Results FY 2024 & FY 2023
FY 2024 & FY 2023 GAAP TO NON-GAAP RECONCILIATION RESULTS ($ in thousands, except per share amounts) 41
Slide 42: GAAP to Non-GAAP Reconciliation Results FY 2025
FY 2025 GAAP TO NON-GAAP RECONCILIATION RESULTS ($ in thousands, except per share amounts) 42
Slide 43: G-III Apparel Group
G-Ill Apparel Group