G-III posts record year
Diversification suits G-III Apparel just fine. The U.S. group holds licenses for many brands. It produces and distributes outerwear, dresses, sportswear, swimwear, footwear and leather goods for names like Calvin Klein, Kenneth Cole, Cole Haan, Guess, Tommy Hilfiger, Jones New York, Jessica Simpson Vince Camuto, Ivanka Trump, Nine West, Ellen Tracy, Kensie, Mac & Jac, Levi's and Dockers. It also manufactures products for U.S. sports leagues and American colleges and universities.
But the past two years, the group has decided to bolster business through acquiring its own brands. After picking up the resort line Vilebrequin last November, the company bought the G.H. Bass & Co shoe company from PVH Corp. These two famous names were added to a fold of more lesser known labels (at least in Europe): G-III Sports by Carl Banks, Eliza J, Black Rivet, Jessica Howard and Winlit.
The moves have enabled the company to report a 23% increase in sales for fiscal year 2014, ended January 31, 2014, posting 1.25 billion euros (1.72 billion dollars). The company's net profit reached 56 million euros versus 41 million euros a year earlier. Its EBITDA fell 29 percent to 107 million euros.
"Fiscal 2014 was an excellent year," said Morris Goldfarb, CEO and Chairman of the Board of Directors of GIII Apparel, in a statement. "We continued to grow at a fast pace, executed our strategic plan for Vilebrequin, acquired G.H. Bass & Co. and produced both strong sales growth and increased profitability. We are pleased to have performed well throughout the year and finished up fiscal 2014 with record breaking results for sales and earnings."
The group says it plans to continue the trend for fiscal year 2015 (which closes January 31, 2015). G-III is forecasting net sales of 1.45 billion euros and net income between 60 and 64 million euros.
"We continue to create a variety of significant growth opportunities as we build our operating platforms," said Morris Goldfarb. "We believe that this systematic approach to growth and diversification, combined with cost discipline, positions us to continue our strategic expansion, organically and through acquisition, and drives excellent value to our shareholders."
It will be interesting to see what the company aims for next.
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