A new round of cost-cutting measures at G-III Apparel Group Ltd. will affect employees from the bottom of the payroll on up.
The New York-based outerwear and sportswear marketer said Tuesday it will at least temporarily end its 401(k) matching program and, for the next six months, trim the salaries of top executives in response to what it called “economic uncertainties” in the upcoming year.
In documents filed with the Securities and Exchange Commission, the company said it reduced the base salary of Morris Goldfarb, chairman and chief executive officer, by 20 percent to $800,000 a year from $1 million. Sammy Aaron, vice chairman and president of the company’s Marvin Richards division, also saw his base salary trimmed 20 percent, to $600,000 from $750,000, and the same reduction was applied to the pay of Wayne Miller, G-III chief operating officer and secretary, and Jeanette Nostra, president, both of whom had their salaries reduced to $400,000 from $500,000. The firm cut the compensation of chief financial officer and treasurer Neal Nackman by 10 percent to $292,500 from $325,000.
The company said it reduced the base salaries of two other unnamed division heads by 20 percent and cut cash compensation for nonemployee directors by 20 percent as well.
All pay reductions are effective for the six months started Feb. 1, G-III said.
The company eliminated its 401(k) match plan for the fiscal year ended Jan. 31, according to the filing.
G-III has yet to set a release date for its year-end and fourth-quarter results. In December, the company cut its fiscal year earnings guidance to between 95 cents and $1.05 a diluted share on net income of between $16.3 million and $18.1 million. Previously it had expected diluted EPS of $1.35 to $1.40 on income between $23.5 million and $24.4 million.
The firm, which holds licenses for Calvin Klein, Cole Haan, Sean John and Kenneth Cole, among others, acquired Wilsons The Leather Experts stores last year.
Shares of the company fell 35 cents, or 6.5 percent, in trading Tuesday to close at $5.05.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)