Pretax impairment charges of $33.5 million threw G-III Apparel Group Ltd. to a large fourth-quarter loss.
During the three months ended Jan. 31, G-III registered a net loss of $32.1 million, or $1.93 a diluted share, versus net income of $1.1 million, or 6 cents a share, in the year-ago quarter. Excluding impairment, the loss came to 23 cents a share, nearly four times the 6-cent-a-share loss forecast by analysts, according to Yahoo Finance.
Boosted by acquisitions, the source of the goodwill and trademark impairment, sales rose 32.6 percent to $170.7 million from $128.7 million.
Failure to meet last year’s plan prompted management to outline a new strategy for the 120-unit Wilsons outlet business acquired by the company last July. Detailed by management during the earnings conference call late Tuesday, G-III will close some doors, emphasize current as opposed to year-end merchandise and spruce up the look and feel of the stores.
Management also unveiled plans to ramp up its offerings under Andrew Marc, the leather outerwear brand also acquired last year. Morris Goldfarb, chairman and chief executive officer, said the company is likely to unveil plans for men’s accessories and small leather goods as well as a women’s dress line by yearend. The company currently markets men’s and women’s outerwear and women’s handbags under the Andrew Marc label.
Both acquisitions will continue to weigh on profitability, however. Goldfarb forecast an $8 million loss for the first quarter, compared with a $6.9 million loss in last year’s quarter, a difference, he said, attributable to the acquired businesses. Sales for the quarter are projected to jump 39 percent to $150 million, thanks to growth in the company’s dress business and the launch of its women’s Calvin Klein sportswear program.
For the full year, the company logged a net loss of $14 million, or 85 cents a diluted share, versus net income of $17.5 million, or $1.05, in 2007. Sales rose 37.1 percent to $711.1 million from $518.9 million.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye