Cash is king again — as the emphasis in quarterly updates from public companies are tilting away from income to the balance sheet as the coronavirus clamps down.
Morris Goldfarb, chairman and chief executive officer of G-III Apparel Group, a key apparel supplier that produces looks for PVH Corp.’s Tommy Hilfiger and Calvin Klein, among others, and owns DKNY and Donna Karan, was touting his company’s access to cash with fourth-quarter results.
“We currently have approximately $800 million of cash and availability under our bank facilities,” Goldfarb said. “This strong financial position is important as we move forward and strategically plan the balance of our year. We remain confident in our ability to adjust and adapt to the challenges and opportunities that lie ahead.”
The company has $197 million in cash and cash equivalents on its books, working capital of $754.7 million and long-term debts of $397.5 million.
Investors have been keeping a close watch on G-III, which has been hit hard in the stock market turmoil and is down over 85 percent for the year so far. It closed off 38.5 percent to $4.50 on Wednesday, having started the year at $33.50.
“We continue toward the restructuring of our retail operations,” Goldfarb said. “We are focused on significantly reducing the number of stores we operate and remain committed to substantially reducing the losses from our retail operations as swiftly and efficiently as possible. We reported another year of growth driven by our wholesale segment. Our success remains anchored by our five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld. We are confident our solid wholesale business, along with a more streamlined retail operation, creates a strong foundation for continued growth.”
In the fourth quarter ended Jan. 31, G-III saw net income rise to $25.3 million from $24.1 million as sales slipped to $754.6 million from $766.8 million.
But with COVID-19 bringing business in the U.S. and Europe to a virtual halt now, that seems like a very long time ago.
The company — like many others — did not provide financial guidance going forward.