NEW YORK — G-III Apparel Group Ltd., which has successfully transformed into a broad-based apparel company, looks to continue its growth and diversification strategy over the next several years.
Speaking at the company’s annual meeting Tuesday, Morris Goldfarb, chairman and chief executive officer, said the company is interested in practically any fashion category.
“As we go forward, our capabilities have advanced to the point where our opportunity set is not limited by category, gender, tier of distribution, price point or geography. I believe that, as an organization, we have come to a point where we believe we can do just about anything we set our minds to in this industry,” said Goldfarb.
He noted that the company is in a good position to evaluate strategic acquisitions, given that its balance sheet remains healthy with little long-term debt.
Having diversified beyond outerwear, the company seeks to build in a number of important categories. Goldfarb spoke about the success the company has had since launching dresses five years ago. In fiscal 2008, G-III shipped about $30 million in dresses. By fiscal 2013, it shipped more than $300 million in dresses. Today, G-III’s dresses can be found in more than 1,200 department store doors in the U.S. “These efforts have quickly made us one of the largest dress companies in the industry,” he said. The ceo believes the company’s sportswear, suit, performance and handbag businesses are poised for similar success.
Goldfarb cited the company’s key partnership with the Calvin Klein organization and its parent, PVH Corp. In fact, Goldfarb introduced Allen Sirkin, who retired as president and chief operating officer of PVH last June, and was elected to G-III’s board on Tuesday.
Goldfarb noted that brand value is critical, especially when they contemplate entering new categories. That was one of the things that attracted G-III to its latest acquisition, Vilebrequin. Goldfarb said the brand has given the company “instant legitimacy” in the swim category.
Goldfarb is also enthusiastic about the Ivanka Trump brand for dresses, sportswear and swimwear. He noted that the NFL business performed better than in any recent year. He also cited the progress that Wilsons has made. When the firm acquired Wilsons in 2008, it was losing money and generating sales of $250 a square foot. The chain is now “significantly profitable,” and sales are at $350 a square foot and growing, said Goldfarb, adding the plan is to open more stores. At its peak as an independent company, Wilsons supported more than 700 locations. Today, it operates 150 stores. “There is clearly a considerable opportunity to grow this business again,” said Goldfarb.
For the quarter ended April 30, G-III registered net income of $1 million. This came against a loss of $847,000 in the year-ago period. This was the first time that G-III has had a profitable first quarter, which Goldfarb attributed to strong outerwear sales because of the cool weather during the quarter and gross margin improvement in “our nonouterwear wholesale business and our retail operations.” Aided by the addition of Vilebrequin in August and strong performance from its extensive portfolio of Calvin Klein licenses, sales rose 18.8 percent to $272.6 million from $229.4 million in the year-ago quarter.
The strong showing prompted G-III to raise guidance for the year. It now expects earnings per share of between $3.20 and $3.30, versus its earlier expectation of between $3.10 and $3.20, and sales of about $1.57 billion, up from previous guidance of $1.55 billion.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion