G-III Apparel Group, Ltd. · NASDAQ:GIII
G-III Apparel — Q3 FY2025 Earnings Presentation
44 slides from G-III Apparel's earnings presentation, December 2024
Slide 1: Investor Presentation | December 2024
Investor Presentation | December 2024
Slide 2: G-III Apparel Group
Sparel Group ~ ss a
Slide 3: A Global Leader in Fashion
Glll A GLOBAL LEADER IN FASHION
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.
Slide 5: Values
VALUES OUR WORLD CLASS TEAM IS: Passionate Entreprenurial Proud of Our Agile in Our Accountable About Our in Our Partnerships Execution for Our Product Thinking Results
Slide 6: At a Glance
AT A $3.10B 600+ 8 RETAIL STORES COUNTRIES WITH GLANCE GLOBAL REVENUE OPERATING OUR CORPORATE GLOBALLY* OFFICES FY 2024 FY 2024 * Company and partner operated stores $4.04 $75M 8 NON-GAAP LICENSING REVENUE RETAIL WEBSITES* DILUTED EPS *DKNY, DK, KL, KLP, VBQ, BASS, WILSONS LEATHER, SONIA RYKIEL 30+
Slide 7: Our Brands
OUR BRANDS 7
Slide 8: Our Brands
OUR BRANDS TYONNAKAIRAN
Slide 9: Our Brands
OUR BRANDS ~ = ji NAUTICA HALSTON
Slide 10: Our Brands
Brands OUR BRANDS 10
Slide 11: Our Brands
Brands OUR BRANDS 11
Slide 12: Our History
Timeline OUR HISTORY 1950’s 2000’s 2010’s 2020’s FOUNDING BUILDING ACCELERATING EVOLVING 1956 2005 2013 2020 Founded by Aron Goldfarb in New York City Acquired Marvin Richards and Winlit, signed Acquired G.H. Bass, expanding direct-to- Invested heavily in capabilities across brands Calvin Klein and
Slide 13: Platform for Success
PLATFORM FOR SUCCESS 01 02 03 04 05 MERCHANT DOMINANCE SIGNIFICANT DIVERSIFIED EXPERIENCED EXPERTISE IN ACROSS A RANGE SOURCING & DISTRIBUTION MANAGEMENT PRODUCT OF LIFESTYLE SUPPLY CHAIN NETWORK TEAM DEVELOPMENT CATEGORIES INFRASTRUCTURE THIS PLATFORM SETS G-III APART AND ENABLES GROWTH OF BRANDS A
Slide 14: Merchant Expertise in Product Development
Platform for Success MERCHANT EXPERTISE IN PRODUCT DEVELOPMENT • Best-in-class, seasoned merchant teams capable of developing lifestyle product across a diverse portfolio of brands • Ability to create high quality, well-designed apparel serving consumers across a range of price points and channels •
Slide 15: Dominance Across a Range of Lifestyle Categories
Platform for Success DOMINANCE ACROSS A RANGE OF LIFESTYLE CATEGORIES • Proven track record of expertise, having significantly diversified from outerwear to a broad range of categories over the last 20+ years • Design-led, commercially informed teams provide exciting, differentiated product each sea
Slide 16: Significant Sourcing & Supply Chain Infrastructure
Platform for Success SIGNIFICANT SOURCING & SUPPLY CHAIN INFRASTRUCTURE • Diversified model with best-in-class partners and continual expansion of capacity, capabilities, and countries of manufacturing • Highly agile and diversified sourcing and supply chain network with no dependence on a single pa
Slide 17: Diversified Distribution Network
Platform for Success DIVERSIFIED DISTRIBUTION NETWORK • We market product at various price points with broad distribution across channels and geographies, allowing us to reach a wide range of consumers globally • Our longstanding relationships with our retail partners afford us significant opportuni
Slide 18: Experienced Management Team
Platform for Success EXPERIENCED MANAGEMENT TEAM Proven track record of successfully acquiring, managing, and scaling new businesses having completed over 10 acquisitions and several joint ventures over the last 20 years MORRIS GOLDFARB SAMMY AARON JEFFREY GOLDFARB DANA PERLMAN NEAL NACKMAN Chairman
Slide 19: Strategic Priorities
STRATEGIC PRIORITIES DRIVE GROWTH OF OUR OWNED BUILD OUR COMPLEMENTARY BRANDS PORTFOLIO OF LICENSED BRANDS BRING OUR NORTH AMERICAN RETAIL EXPAND OUR GLOBAL REACH SEGMENT TO PROFITABILITY DELIVERING ON OUR COMMITMENT TO DRIVE LONG-TERM SUSTAINABLE GROWTH AND SHAREHOLDER VALUE
Slide 20: Drive Growth of Our Owned Brands
Strategic Priorities DRIVE GROWTH OF OUR OWNED BRANDS Capturing the long-term potential of our owned brands is one of our top priorities • With full control over the design, production, global distribution and marketing, these brands represent an important and sustainable long-term profit driver, ge
Slide 21: Strong Organic Growth of Our Key Owned Brands
Drive Growth of Our Owned Brands STRONG ORGANIC GROWTH OF OUR KEY OWNED BRANDS • Acquired in 2016 • Acquired in 2016 • Acquired in 2022 • Acquired in 2012 • Distribution across 1,500+ retail partner • Re-launched in Spring 2024, our most • 120+ mono-brand stores, digital and • Distribution in ~200 c
Slide 22: Brand Extensions Through Licenses
Drive Growth of Our Owned Brands BRAND EXTENSIONS THROUGH LICENSES • Broadens our 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 be
Slide 23: Experiential Licensing
Drive Growth of Our Owned Brands EXPERIENTIAL LICENSING • Experiential licenses bring our brand’s full lifestyle appeal to life • These unique concepts drive consumer engagement and fuel global brand awareness • Karl Lagerfeld has a branded hotel in Macau with one in Malaysia launching soon along wi
Slide 24: Build Our Complementary Portfolio of Licensed Brands
Strategic Priorities BUILD OUR COMPLEMENTARY PORTFOLIO OF LICENSED BRANDS We seek brands that are complementary to our existing portfolio and unlock opportunities that further diversity the business and align with our go-forward strategy LICENSED BRANDS INCLUDE: ● We are thoughtful about the brands
Slide 25: New Licenses
Build Our Complementary Portfolio of Licensed Brands NEW LICENSES Iconic American lifestyle brand with a Iconic, modern, and nautically-inspired Simple and classic elegance that offers an Iconic American brand born from sport, longstanding legacy across multiple designs with a casual fit, feel, and
Slide 26: Expand Our Global Reach
Strategic Priorities EXPAND OUR GLOBAL REACH Expanding our brands outside the U.S. remains one of our largest opportunities over the next 3-5 years • Vilebrequin, along with our acquisition of Karl Lagerfeld, helped accelerate our international presence, and we are in the early stages of expanding D
Slide 27: Bring Our North American Retail Segment to Profitability
Strategic Priorities BRING OUR NORTH AMERICAN RETAIL SEGMENT TO PROFITABILITY Improving productivity & profitability as a result of our retail segment transformation initiatives • We are pleased with the progress we are making in our retail segment transformation since the recently implemented manag
Slide 28: Go-Forward Portfolio: $5 Billion+ Net Sales Potential
Go-Forward Portfolio GO-FORWARD PORTFOLIO $5 BILLION+ IN LONG-TERM NET SALES POTENTIAL • We have transformed our business model, creating a diversified Go-Forward portfolio of owned and licensed brands that leaves us $5.0B+ well-positioned to deliver long-term Category Expansion sustainable growth,
Slide 29: Business Update
BUSINESS UPDATE 29
Slide 30: Q3 FY25
Q3 FY25 30
Slide 31: Q3 Fiscal 2025
Q3 FY25 Q3 FISCAL 2025 “I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over Morris Goldfarb, 30% organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin. The power of our transforming Cha
Slide 32: Q3 Fiscal 2025 Key Financial Results
Q3 FY25 Q3 FISCAL 2025 KEY FINANCIAL RESULTS Three Months Ended October 31, ● Non-GAAP net income for the third quarter was $116.3 million, or $2.59 per ($ in millions, except per share amounts) 2024 2023 (Unaudited) diluted share, which was significantly above our expectations. This compares to $12
Slide 33: Q3 Fiscal 2025 Balance Sheet Highlights
Q3 FY25 Q3 FISCAL 2025 BALANCE SHEET HIGHLIGHTS At October 31, At October 31, ($ in thousands) 2024 2023 ● Inventory decreased 10% to $532.5 million at the end of this year’s third quarter compared to $591.5 million in the third quarter of last year Cash and Cash Equivalents $ 104,686 $ 197,391 Long
Slide 34: Fiscal 2025 Outlook
FY25 OUTLOOK FISCAL 2025 OUTLOOK “Looking at the remainder of the year, given our significant third quarter earnings outperformance, we are once again raising our earnings per diluted share guidance for fiscal 2025. Our proven track record of success and our strong balance sheet gives us ample flexi
Slide 35: Fiscal 2024
FISCAL 2024 35
Slide 36: Fiscal 2024 P&L
FISCAL 2024 FISCAL 2024 FISCAL 2024 P&L ● 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 $3.23 billion last year, impacted by warmer weat
Slide 37: Fiscal 2024 Balance Sheet Highlights
FISCAL 2024 FISCAL 2024 BALANCE SHEET HIGHLIGHTS ($ in thousands) ● Inventory decreased 27% to $520 million, from last year’s $709 million o Made strong progress rightsizing higher inventory levels carried over from last year, with inventory levels better aligned with future sales ● Further strength
Slide 38: Quote from Morris Goldfarb, Chairman & CEO
“We have grown and evolved significantly over the past 50 years because we lead with an entrepreneurial approach and value relationships. This proven formula will drive G-III as we enter the next phase of our business.” MORRIS GOLDFARB, CHAIRMAN & CEO 38
Slide 39: Appendix
APPENDIX 39
Slide 40: Fiscal 2023 P&L
APPENDIX FISCAL 2023 FISCAL 2023 P&L ($ in thousands, except per share amounts) For the Year Ended January 31, 2023 Q1 Q2 Q3 Q4 Full Year (Unaudited) (Audited) Net sales $ 688,757 $ 605,244 $ 1,078,299 $ 854,428 $ 3,226,728 Cost of goods sold 442,718 376,318 733,672 572,883 2,125,591 Gross profit 24
Slide 41: Fiscal 2023 GAAP to Non-GAAP Reconciliation Results
APPENDIX FISCAL 2023 GAAP TO NON-GAAP RECONCILIATION RESULTS ($ in thousands, except per share amounts) GAAP Net Income (Loss) to Non-GAAP Net Income For the Year Ended January 31, 2023 Q1 Q2 Q3 Q4 Full Year Net Income (Loss) $ 30,634 $ 36,319 $ 61,103 $ (261,117) $ (133,061) Karl Lagerfeld Investme
Slide 42: Fiscal 2024 GAAP to Non-GAAP Reconciliation Results
APPENDIX FISCAL 2024 GAAP TO NON-GAAP RECONCILIATION RESULTS ($ in thousands, except per share amounts) GAAP Net Income to Non-GAAP Net Income For the Year Ended January 31, 2024 Q1 Q2 Q3 Q4 Full Year Net Income $ 3,236 $ 16,438 $ 127,640 $ 28,854 $ 176,168 Asset impairments - - 222 6,536 6,758 Expe
Slide 43: Fiscal 2025 GAAP to Non-GAAP Reconciliation Results
APPENDIX FISCAL 2025 GAAP TO NON-GAAP RECONCILIATION RESULTS ($ in thousands, except per share amounts) Forecasted and Actual GAAP Net Income to Forecasted and Actual Non-GAAP Net Income For the Year Ended January 31, 2025 Actual Actual Actual Forcasted Q1 Q2 Q3 Full Year Net Income $ 5,802 $ 24,212
Slide 44: G-III Apparel Group
G-Ill Apparel Group
G-III Apparel Group — Q3 FY2025 Earnings Presentation on 6ix