G-III Apparel (GIII) 6 Jun 232024 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the G-III Apparel Group First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Neal Nackman, CFO. Please go ahead.

you us. thank and morning for joining Good

the Before that call certain I would statements and laws. federal remind participants like to within forward-looking statements constitute the session we of Q&A the securities begin, in may meaning made on today’s

Forward-looking could actual may discussed cause financial of or from guarantees, actual differ no forward-looking statements. condition and implied filed update by the documents duty with company the company the are expressed results in or in not to of Important statements. statements materially forward-looking are company results to those factors differ any The the that operations the SEC. undertakes

which the during income, income share addition, are non-GAAP In financial net EBITDA, diluted all measures. we non-GAAP non-GAAP will refer to per net adjusted call, and

provided is on also in non-GAAP to financial We of available these which measures our release, have GAAP reconciliations press our website. measures

our Morris I over call Chief to will and Officer, turn now Chairman Executive the Goldfarb.

thank joining successfully exceeded navigate the top a you, team line our to first hard Thank In bottom you, environment where worked challenging everyone, guidance. quarter, year. and had Neal, us. a what start the for both and our to good we We remains

net sales by $X.XX. guidance the quarter fiscal net midpoint our guidance $XXX share the of of For approximately was million, above diluted first our $XX per were XXXX, by income Non-GAAP million. $X.XX, exceeding

margins gross year’s significantly quarter. better expected, were last As than first

port we decreased our by from ended Karl the up or times rightsizing position that warehouse account space our year reducing progress have Lagerfeld normalized, last excluding $XX adjusted carrying. the to We inventory by XX% million approximately last lead we’re up inventory inventory. buys strong as Further, sequentially future and product balances made acquired for appropriately. congestion quarter with X%, We and to

to third to in trend year, costs, significant and costs freight moderating this driven not quarter. expect incurred last the throughout year’s by anniversary continue needing logistical we Importantly, primarily

with approximately and $XXX $XX strong our repurchases. financial including the returning to in quarter position million availability, cash million stock ended We a in through shareholders

with future to to include continues expansion substantial North Nautica long-term against them. quarter, sheet repositioning in opportunities, flexibility and the we provide America. invest XXXX Karan We’ve balance for Donna Spring a Last global Our and the us in already begun license of announced two which new growth. executing

we are Today, third announce the licensing Halston new as new pleased initiative. to for agreement a brand the

term. into brand buy product We XX-year of to agreement to Xcel and option end with have a with at Brands the design produce all the the licensing the entered of categories

we the lifestyle licensee to Halston, have As providing income. additional the master categories sublicense produce, ability another we of for that do share not licensing

are of deliveries expected for XXXX. First fall

updates bringing market. for known to this model are unlock touch tremendous channels, range an brands At distribution to with its our a is the best-in-class brand design I believe on success sold American brand and to will a number brand grow progress American platforms stores our there and available of to widely rich price merchandising of range potential. digital designs focus by G-III, points. and glamorous across we consumers forward broad streaming. points. on top-tier the legacy more a of retail Halston proven our department to stores distribution across you Halston heritage with make expertise exciting across and through relationship of and look is leveraging a is we a live Currently, heritage as make with sharing teams, With opportunity with brand

merchandising while strength experienced and Product We’ve moving studying is well Karan are lines Donna are our development company appeal. broadening authentic of the with foundational these and create archives underway. Nautica and quickly. for spent ensure to of messages teams brands Development time we brand our their

life. a Having DKNY, the creating line successful With category, will we’re successful approach to at hard Nautica that strong work for and Klein, be we’re Hilfiger jeans a businesses differentiated For our Nautica, built of the this to in Calvin we understanding and start. we’re of from jeans believe highly line confident architecture bringing jeans. XXXX Tommy Spring the

the Donna retailers With its the our response and will the opportunities, Halston classic, with company. brand’s contemporary, continue The to our Nautica and Donna looks for broaden drive Karan, positive. strategic focus on wider incredible and priorities from been to we’re base. appeal leveraging The collection to working feel elevated growth a Karan, consumer new initial our along and has

ownership business. brands opportunities strategic reach, expand by our our priorities opportunities, data label scale of continue power private licensing extend their further Our remain, our and drive brands leveraging across and portfolio global omnichannel categories, our through to maximize

update me let this our quarter. of you progress on Now some

Our DKNY, Lagerfeld, and brands, outperformed expectations. Hilfiger Karl our Tommy Calvin power Klein

led suit latest Our our offerings to Consumers dressier results categories, were by product dresses, sportswear all including responding and are of our channels. separates. distribution across

to has quickly demand. athleisure, categories in enabled which these Our expertise diversified from declined to pivot us

able to make be transitions where deliver to continue the to right necessary the at product We right quick time.

expected This brands This $X.X well DKNY, owned focus our and in sales. our owned approximately a net Owned as key Donna for Karl a other priority billion year, $X.X in billion generate annual brands, sales annual continue an which last net Lagerfeld, to of brands and strategic perform Karan includes are well aggregate us. are to on year. represented as Vilebrequin

licensing focused geographic grow generating and higher to these historic brands have is channels, digital resonance potential margins businesses new and Our strong operating regions, through expansion than company’s across while significant team opportunities. distribution penetration These the on averages. categories,

performance off the exceeded DKNY its continues marketing focusing to to in key participated March. Metaverse much shifted approach, on of all plan Lagerfeld start annual brand build Fashion campaigns. has brand Karl platforms second and year. digital-first The efforts Our with to a to across American North the in awareness influencers and and are businesses relationships both DKNY good and a social Paris Week

Annual event the fashion brand explore fashion. and of great brand his opening our the of hosted that and are to new impact Met museum’s Vogue extraordinary of central Beauty, Karl Lagerfeld: the activities. month, Karl’s A Line Gala, largest event exhibition, revisits global It’s and we prestigious Last most Art the celebrated thrilled The Museum Lagerfeld which Karl and own for Chanel, the in his to at on and honor is career the all Fendi, culture. Lagerfeld a of Chloe, Metropolitan

Amber global celebrity-studded Yeoh with The on wore addition Academy Cara spectacular out celebrities our Bloomingdale’s included brand-building to Award on City. on Leto, campaign investments in watched focus Lagerfeld, that customers. in our connected widely and the press Met brand which marketing capitalize and windows for actors, at carpet the stores was flagship Gala we largest activities, Carla Macy’s strategies including arrivals. with Many Bruni-Sarkozy. to dedicated date, marketing red To Delevingne Gala Michelle Karl Valetta, Jared York We and significant rolled New and

engagement. in We created and global an impressions. billion impressive activities brand. increased also launched an and resulted partnerships, capsule X.X This demand collections, metaverse These pop-ups events, media is the for

and reinforces we’ve sites Our a largest period The retail the seen Met our our part of partners portfolio. in around strong Gala. with the Lagerfeld the significant result, as spikes as retail having the Karl branding the power performance of saw Met, from own of coupled halo

the in co-producing who to forward is Lagerfeld us. and Jared with Karl starting looking we’re movie Additionally, with Leto,

will expect these affinity. that investments long-term brand We increase

our Extending reach global priority. is another key

known X Vilebrequin it all its brand’s grow opened Cannes, stores Beach to luxury many Last in new experience Plage, more ability that further the drive you exciting is the and and solidify that just position signaling officially from excitement things DKNY, positive a I brand. differentiated product. our we addition and brand. association opening, the of the opened and In trend returned The our and Karl vacation. week, Vilebrequin opportunities Club broaden continues La as clear It there his sales brand this is quarter. embodies spirit grand collaborations can for to that newness, leading Lagerfeld the resort first tell Having Vilebrequin are to

Our by developing increase on of primarily particular, over This had and building year’s channel sales triple distribution multiple digital almost attributed shoes. business led outerwear, the first dresses industry our strong to our results. which XX% outperformed focus is quarter, business, yielding that and focus growth our is last In Amazon on good across was overall.

retailers moderated which our we that mix continue serving distribution to customers channels, to pure-play sites with retail as and returning well our invest sites, in stores. including ensuring available diversified growth and channels, stores. Our is have digital digital is plays traditional also expected, own with in us partner appropriate digital as This offset expanding product pure

in increases by Lagerfeld resulting e-commerce and capabilities in Paris replatform own boosted new are feel, in average new technical value. well sites strong enhanced powerful as DKNY traffic that consumer increases CRM loyalty The engagement look as are increased a operations. tools These programs, and and order and double-digit upgraded our are strong Karl of sales

a ever in for more unlocking to the seamless customers, incremental before acquire and work our than are new We foster This digital of shopping drive strong our business. more in brands. has resulted data performance experience ways effective conversion

We our a profit operations, to our margins includes in to will This improve continue initiatives consultant the to optimize take enhance further us on which our hiring future. warehousing help infrastructure.

to and bottom new for signed new aligning pleased – a demand, our agreement global a inventory good to fiscal mention progress the our top licensing Lastly, I made and had first line to We to We that the start forward we year. am Halston. beat solid guidance. we long-term

on of and the outlook. quarter, Karl last – slightly Furthering year sales strong approximately focus XXXX developing full fiscal million now the up Lagerfeld $X our acquired me, Based business. we’re of first fiscal We year new opportunities. our expect $X.XX XXXX billion, net a on to including raising excuse

of $X.XX $X.XX raising diluted income We’re the to compared per in to XXXX. range fiscal our in to net be share non-GAAP $X.XX

Board pleased We of has for Shaffer, Brown, will their forward that G-III. three to I Thursday. in future who this perspectives Shareholder expertise and directors, mention and conclusion, Meeting Joyce election Andrew In supporting having Michael Yaeger, at Dr. our our valuable Annual the stand new to am look nominated

results will for Neal the second as quarter for quarter pass I discussion full well XXXX. – fiscal now first call our financial as full of a the year and guidance to

our Morris. to in the issued a are about full non-GAAP results of a And our respect GAAP to on results press this release I’m again, included operations, basis. our With reconciliation Thank morning. to make non-GAAP comments you, of

were second million a and prior the quarter. XXXX. in quarter month Net quarter last in our $XX Karl sales for the same XX% of became April business with which subsidiary acquired Lagerfeld ended sales sales $XX XX, May in the in results period Lagerfeld of from approximately guidance. on were our year Included last million $XXX XX, million our for approximately to included first the million year above decreased $XXX XXXX, of the business, this Karl the wholly-owned commencing results Accordingly, the

million $XX $XXX compared Karl sales to Net sales net segment XX% for the of Lagerfeld $XXX results. $XX year. business Wholesale our million segment now includes was million to last Retail sales quarter segment of our first acquired last from the first in year’s quarter. approximately decreased This million Net of

to XX.X% quarter. first gross year’s previous year’s Our to was quarter. first percentage compared The Wholesale was in margin fiscal in comparable quarter XX.X% percentage margin the XX.X% in the of XX.X% gross prior XXXX the compared segment

a margin quarter As at gross prices. our resulted segment. increased as approximately operates an have in inclusion XXX the inflationary well the in before, rest is we Wholesale and product wholesale of increases of the pressures percentage stated increase in gross in the a Their margin remainder margins of result acquired costs in than a of Lagerfeld transit business Karl higher decrease our points. as percentages The basis in gross

related $XXX in net $XX percentage quarter. from million in transit inclusion the XX.X% Lagerfeld last quarter. was costs. sales or and also segment compared $XXX approximately Non-GAAP product of a SG&A the expenses decrease first of in in XX.X% quarter, margin benefiting business Operations compared gross were in our prior sales the year’s for primarily pressures XX.X% grew inflationary net Retail results million XX.X% to The of to our year’s by in acquired the SG&A Karl or to million,

higher of our income we for last year’s increase in quarter $X.XX as diluted in share associated Non-GAAP This or a net of share quarter. net loss compared was In $XX costs $X.XX the warehousing share. increases addition, per levels million the per pressures. was significantly guidance a with and inventory first $X.XX overall $X inflationary of million had above an to or result of first our midpoint per diluted

good decreased progress our made sequentially Turning to by the sheet. balance We million respect inventory to with $XX last from quarter. which levels,

remaining The fall to outerwear carried first Lagerfeld is and As attributable that expect this were compared inventory up the to ship is of business. to season. inventory and increase Approximately the holiday last year’s increases in approximately quarter, the in increase levels year Karl into acquired we to XX%. half related

Just our to quarter and all third categories year levels tempered as be a the second and for existing at through the we in continue inventories our end compared our year inventory levels significantly normalize reminder, to buying to the quarter. we have this down go our of as account the to prior expect

net LVMH. $XX $XXX this of This revolving December in close in cash remaining stock quarter. increase availability of million credit at and Xst. Karl of will used million in under debt quarter debt million note acquisition The the repaid we the ended outstanding the position impacted by $XX $XX and the prior approximately to end, compared million We million quarter be cash of $XXX year. to a note the had Lagerfeld in million the our complete Post We repurchases. net the million agreement net $XXX million was $XXX used $XX approximately to repaid on of for

position We us our this levels expect and strong our will enhanced believe normalize. financial in the liquidity provides that invest inventory our be flexibility growth. positive We cash to as future year that flows

a we our performance – guidance, our on raising guidance. in quarter, first our As based full for the are

full net a of ahead billion, per of $XXX $X.XX $X.XX $XXX per compares diluted or for expect million fiscal fiscal net XXXX year the sales full XXXX. non-GAAP year approximately fiscal we million share income the diluted million of and slightly $XXX for to $X.XX last now On non-GAAP expect year. we between net basis, income or of For This share. and $X.XX between XXXX,

and to adjusted million of year EBITDA million Full expected $XXX fiscal is adjusted be XXXX. $XXX XXXX EBITDA compared million in to $XXX between fiscal

period $XXX year $XXX expect of year. approximately year Karl of The the For business. million last of million net X we compared month in second quarter quarter the to XXXX, acquired sales same second only prior fiscal the Lagerfeld reflected

million non-GAAP a net $X.XX of per a between operating second share. per and income non-GAAP and share diluted basis, per million of between This quarter of loss net compares we a fiscal $XX net $X.XX or On to $X year diluted of of results expect in $X million $X.XX the income loss of of share income or XXXX.

some Let context me modeling. add around

basis benefit XXXX significantly rate. to up margins gross and expect the and improvement This expect is ending margin by with points fiscal freight the year we factors: compared year. mentioned, XXXX a the driven moderated, during Morris anticipate year gross this As approximately First, throughout fiscal XXX few have cost we

do Second, we quarter repeat of primarily third one-time significant expect in incurred the year. not last to costs, logistical

inclusion results June which Lastly, business, business months positively margin the the our benefit from impacts Karl acquired of acquired year the X this XXXX. The the percentages. will Karl Lagerfeld from of commencing reflected gross first were Lagerfeld X,

inflationary well of percentage to continue expenses. elevated associated X as as this SG&A We the of will will as increase levels continued this year Further, the costs business in addition net de-lever the anticipate first inventory Lagerfeld higher on represented pressure months Karl year we by of the with sales SG&A expect warehousing costs.

interest We and to expense a of during expect be the are $XX year. rate we approximately non-GAAP estimating XX% tax million,

We share have our repurchases potential not anticipated in guidance. any

comments. for my call will Morris the remarks. back concludes to That closing turn I now

continues G-III what operating to challenging – thank Neal, us has is remained what a you, successfully and all joining today. you for Thank navigate environment.

focused new a key driving start new priorities the strategic year. off opportunities. our good We and develop We’re continuing to to fiscal in remain on

partners, I’d and financial flexibility our business support. of continued our opportunities all may take their the that way. entire and invest thank organization, stakeholders in to like appropriate our many our for our come We to of have advantage

ready questions. Operator, we’re now some take to

from Thank from Instructions] first you. Our question [Operator comes Edward Yruma Piper Sandler.

is line open. Your

in of on morning, licensed relative you the couple we already owned the costs guys. Halston, should and and in – kind I how that brands does of they the space Can it model good demurrage a Morris, then news. fell little time. Karl know have lots excess when rolling how and for you I as Lagerfeld? of bit fit DKNY they have that you of Thanks the maybe of about a could remind to in modeling space kind last purposes year, And talk Hey, back guess, Neal, off? half us are were when a of exciting kind now year? And last just white appropriately this they you. in year first, brands, follow-up, you Thank

where will of Thanks your Ed. to and the brand consumer of for basically full wants we question, control us, a demands be. the for Halston, is that servicing have

a We’re new have staffed developing we in done with talent product. find glamorous little to outside We of our go organization. collection didn’t to premier historically bit more it talent. is than have a We’ve that

basically We does have G-III, beat talent follows of the that it well.

a with of coming opportunity partners, licensing not is be we’ve And some They the global in is problem, plan Sourcing to Xcel. and we much about very an great much share brand. as the for Halston. as strong classified a a years. owned brand and with we’re that It’s – this as building got got excited a we’ve royalty seem will initiative

that One other developing to got proved as in an sense, the quite heritage your question our European of in The has in a there proficient we’ve asking portfolio they are that more white Lagerfeld. than refers appeal It’s out In space is you’re is such out in more I partners world. the American brands existing well assume a contemporaries. and brand to, brand with product, be that Halston.

you own our exiting space. both a Calvin. We’re more space know, about And a and white as or concerned filling about Tommy we’re bit of in of filling we’re most not do concerned so process little

we’re opportunity partners I the assets. by our up So the this before, is shore and have. said a excited that we as And to great

last in and the pretty entirely this third $XX $XX figures almost exclude those on logistical in year. was fourth in quarter about Ed, much just incurred roll we costs, the the million $XX we about was about under year, total And million as could you quarter. – million

Thank you.

Thank you, Ed.

Thank you. a question Instructions] [Operator Gaertner Fargo. We Wells from Will have from

Your line is open.

receipts a I my retail morning, inventory just could Neal, maybe for at still the seeing coming Morris to little business? you how maybe the stoppages good inventory? they Are taking and impact or about you’re and Thanks West ports too, Coast speak order in then Are that secondly, might with work heavy talk bit levels And guys. guess, they partners? back? can what that to beginning Thanks. you Hey, question. your

you a Thank product is Will. issue on differently for than their customers there, focus your which our inventories is question, clear are managing natural. isn’t for have The major focus historically. on a There today. Turn a inventory they

you turning need not inventory, have you’re If buy to your no it.

Fortunately, we’re that. on side for us, of good the

is inventory Our well. turning

our demand. our fashion in is categories adjusted inventory Our And that the is inventory have. our inventory is we and what done – We’ve into we’ve demand. demand in in

good – business. on athleisure or of the side we’re in a performance position We our

amount a have is marketplace. support There space that initiative. the overabundance in an the of forward go that not We being of product The fair orders is given up.

suit dominate. our areas And We’re areas dresses are to at we are our specialty, are flows flourishing the separates adjusting that retail that demand of accommodate and that.

demand product not it’s classifications. managing we’re create the to for It’s retailers and necessarily retailer managing the in our their right fashion So inventory. how is our how

don’t problem. we see So a

coming a orders Our in with inventories by on low focus that. support there quarter. is support But reorders that,

have job down quarter problem us our amazing which was year. levels of inventory not for at last a QX, you’re is We seeing what least to done bringing an

that and all. period you’re an levels, spite at levels in fact inventory time increase that it’s a not issue inventory came X% QX. the seeing our an problems were of at In Our QX of in

major You’ll and and last cash, see we QX will of mitigate levels it decreases in that will QX, for year. some logistical major, which issues inventory our enhance the had

control. inventories much So very are in

all. not forewarn that we far issues, incurring Nothing not any at West we’re potential have As the a as Coast, issue.

inventory our appropriately. flowing We’re

good a forward. support going to percentage need what in-house inventory of have we We

on So is there horizon. no crisis our

Thank you.

Will. you, Thank

you. Thank

Vega Serna UBS. We question from Mauricio have from a

Your open. line is

I just wanted brand Halston Good thanks for agreement. about ask And Great. my to morning. taking the question.

we like saw following in guidance it how to an think that previous meaningful in Could release, in noticed payment. potential your just So of And lastly, rate Thank press the this we like you compared that May share like the what kind on expansion an this see XXXX upcoming quarters Is what the brand? payment upfront also, another And question, there year? in QX? was for amount? that is I figure mentioning advanced on for revenue long-term margin, in the gross an you then the should release was and do this of you. about for how from

am my a payment Thank way target us global. us enough were It cost Xcel. Addressing doing at business. the a G-III. of X $XXX all. to diligence. a payment question, put Halston million demand. decision our own years, it’s you us just didn’t to the gives any It you pick to or We – It freedom. to I affect within would tell brand you, in without I is in if growth. Mauricio. give it, minor It decision not to giving give It’s to And gives in it was on of is It I doesn’t free you. buying the my It scope not the

a support particularly after We I global it the fact has for little was appeal, Europe. globally, honestly, in customer surprised that it the have quite

So, we are excited by the opportunity.

comes us when share license We royalty and added to that licensing choose are We any able that we do to for reason. have or to categories an do not income licensing not we feature.

now, should licensing a story. So, nominal financial It’s we it’s at – XX as a not the as purchase years care And a own income, event we major to all rate long-term get it’s income. a besides company. well royalty purchase output from discounted our from

serious is enhancement in The you what enhancement gross as experiencing told somewhere brands our is to that the when we is we margin, all product your it. a brands. see infrastructure, a and a between on own margin paying brands in for have a money spending our royalties shipping versus royalty a bit on and are that XX% added XX%. licensed business it. margin eliminating and ship significant far And little you As Street own own what without we our can There get and advertising and pay maybe of we by have still

just the And and that with compared to strong quarter, you the expect some the of will year. we to phasing, year course, help but Mauricio, still quarter. of third the pretty tail increases probably And prior second prior up, for in fourth the then be ahead of

you Great. results. Thank very much. on the Congratulations

Thank you, Mauricio.

from [Operator a We have you. Kloppenburg Thank Research question from Instructions] Joseph Janet JJK Associates.

is line open. Your

I Halston and you that profile a revenues will of morning wondering margin looked. diminish development congratulations I just if I I so your now quarter. be Good from will Calvin and DK, and on everyone the the good brand bit it year. eventually plan, feel if got the late, wondered forgive how Tommy have this. little know the that how on Halston And addition you. next the a business of Thank with me impact and bringing about license outlook a have wondered you and and answered about may I been that on Nautica, recouped. was

prior it addressed will you we and on I to the So again. Halston, question, Janet, give

Thank sorry for you. I repeat. am the

brand It’s as which entire out. the buy an signed of rate, great got at story. was buy to it’s amount. output, we discounted the out, the we the cash termination for we It’s signed XX royalty the fit buy this a a as global but is I alright, go initiative. opportunity quite a goes license for major not choose as like or periods, It in it nominal have a signed No, Halston and a kick-out us. should brand and telling we should brand to it’s years,

believe have So, know and this we we great demand brands, portfolio. is fits to I business down years, produce the us, a heritage for We have margins. we American X built $X.XX in And licenses. acquisition for how and wind with as it brand. Tommy Calvin built-in space our for our billion enhanced within us into And

Thank you.

about remainder business? And It Thank be talk you the will year, you. of also for the be think strength. look leading if casual? for to to reversion to that you Could wear Okay. career you some the if your continue there back seems or

Yes. Good dominate that is the at wear question. Career very sector wholesale performing We well. level.

good. Our very business is

margins are good. Our

Our we future. was the have area our it inventories, low, it Demand wear side as career be inventories, low high. I cite would it always and very where continuing were to business. the we Sell-throughs to if were of see an has strong,

they As not or gone marketplace. the pandemic was that brands was away. in of and their far that, offerings, either athleisure as inventory build. business, area initiated the overabundance during They decided an that’s expanded address. There that collections classifications they Everybody the thought to could bought new

So, small all of a business. giant sudden from a business, it a became

inventory we The given are important the consumer, comes giving appropriately. It’s new a inventory as an life. are to it does way clears – of where out, woman We not and believe fine. It’s that, itself. just apparel. back athleisure old offerings business. the back, business come correcting it’s now And on So, up is that the

way it’s that pretty much pretty all. every see don’t and it’s at And demographics, age. changing all I of and – So life much

two got you, initiatives for that you you Thank about strong in in So, incredibly the speak Thank different we your Janet. questions. are have different both ways timeframes.

Thank you.

you. Thank

with next question comes Kearney Paul Barclays. Our from

open. line Your is

for taking first Thanks question. SG&A of question cadence everyone. on the morning my good kind My year. through the Hey is

this should am thinking. how just through if higher there why a we just I coming think or it Thank how Lagerfeld we going year? remind forward? model that in Karl we lap think consensus were and growth second, underlying And business should be the SG&A was, about the acquisition is give to organic and then little just can will sense us that you us we I XQ, as the looks XQ we had relative behind than of wondering or anything where higher a you in you. quarter,

Yes.

as the more quarter first pretty comfortable a advertising spend. Paul, little SG&A, as So far with

and what to challenges the little basis, of are the terms With prepared But that to the So, the business, business unusual see that in with Lagerfeld double-digit models we that were too benefit brand. Morris Like we on nothing in in year brand Karl have I the things warehousing a a happening current the as even said, that our general. respect think both his business. to will around there. growth of remarks, first if core lots the have year bit comp respect the for just for said will in quarter nice in I to in inure compared light. look pressures we future inflationary maybe and you And volumes, doing costs exciting acquired for year

you. Thank

Thank question Instructions] Capital have Markets. with you. KeyBanc from Noah [Operator We Zatzkin a

is open. line Your

Hi. Thanks for taking my questions.

just could got today Thanks. agnostic the of just second, you to your You moving it order for about opportunities level how relates guidance. Nautica the you owned as Halston Would look versus you’ve year then up, are hoping that licensed? full are opportunity forward? comfortability Now speak an additional thinking you book with signed wondering there? And to to kind and of raise decision

question, Noah. Thanks for your

than the being as the brand to all care our to than we goes, how us you an today. in margin have the for brands, The better guide Tommy where have owning years are have choice is ability are owning the to different we are of a brands. And and self-evident Calvin to brands is a attributes it’s to able risk it have features are an first and on almost brand enhancements influence and us in losing owned impose with case of our license that that consistent. our after licensed marketed, renting. incredibly The We people to acquire lesson taught this developed important

So, we than case, in like like we better renting. – owning this

the is I cost have we money If ability availability as but a we little pay. and support do the the buying much of there, bank have are than In looking opportunities As are buy months, we on far out have to there a the have as are. brands, we few for None today, traveled like would the a major of as has believe we what opportunities richer I world that to and acquisition. to actionable. are surfaced last must meetings

we are important to side not that an Karan still searching have Nautica, put Halston, we because the acquisition. and Donna we for So, have

to the the of that we Noah, the – then have the year, ship all along don’t coming year. And we nicely, is we with time will of not order book have this during that seasons respect obviously shown

we So, year pretty the like pretty reflected, well of about XX% forecast. looks and supportive probably it’s of the – our feel of it’s

a lot. Thanks

And question? last our Thank Noah. you,

Yes.

question comes last Our one and – moment.

question Telsey last from comes Telsey Advisory from Our Group. Dana

Your open. line is

morning Good everyone. Hi.

should uptick Lagerfeld Thank additional helpful. and of you what your revenues Morris, holiday the the on – the you in about be just or right that the looks think like had a you. would And year, from over there seeing setup are it? as any contribution for fall the past you you view forward? promotions to Karl expecting the As wholesale And additional quarter, Lagerfeld saw and press significant and then, channel be we as there what the brand terms move what for of now, any that was result balance you margins is have Karl that for of

a – have relates Dana. to as we business. good Margins Karl, your going for it in spike Thanks in. were question, We

the are left too brand. that pricing positioned the It’s have an area tier affordable deep in power there where wallet. customers’ not into We brand. It can’t is luxury, top yet an get – it just brand in is we

eyeballs demand. great during there got was the was when I amazed I brand that a have the yesterday giving on Met were X.X number We billion Gala.

the don’t that you X.X clearly, brand an as I there attention So, that it. But that can’t as it’s glorious – was to eyeballs. that paying building impact eyeballs are had we you billion are a now immediate tell immediate clearly get

present other is is good. G-III, than The better very the of domestically. is is The are business as future the top both what although the today, at we well business So, as business doing bright. internationally future at tier

licensing ownership come, distribution, and of we it’s licensing and that were much brand. wholesale excited are to whether So, it’s unexpected. the is by so There classifications whether whether the more it’s retail,

where calls brand mind-boggling. take the So, this the and are of curiosity to just

own this impact than periods. its going it hate to It through all. says do QX. So, more as was There has as wholesale thing. had same are and the Weather cold. far is unseasonably to for we wholesale, everybody its thrilled And is a difficult

make down to product. and recognizing are the retailers amount going there crazy rate to. aggressive, are goods am at that think don’t not it room the spring expecting be to of move didn’t to we nearly – mark expected product you seasoned So, appropriate say see need for that. markdowns I I going is inventory to to but all markdown am a a I

six been last think months has on corrections. for everybody inventory focused the I

So, nobody inventory. top is heavy top, really on

okay years. on we that’s I think with of and all in to little we path. are last a the takes course going world are time couple I all the it in that think on correct So, And

you. Thank

a and and to Dana you Have speak you day. you, thank Thank all good soon.

Thank for call. conference participating. you today’s concludes This

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