G-III Apparel (GIII) 10 Dec 242025 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the G-III Apparel Group Third Quarter Fiscal 2025 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, Chief Financial Officer. 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 call Officer, Chief is on also in non-GAAP to financial We of will to available the and over these our which measures Executive now our release, have Morris GAAP reconciliations Goldfarb. turn press I our website. measures Chairman

you, above Karan Thank strong grew with Karl owned Donna you results DKNY, us. which joining Vilebrequin, by quarter third with for earnings very brands, everyone pleased over expectations of I'm XX%. our our driven Lagerfeld, growth key and collectively and our Neil, thank

demonstrate Our chain unseasonable weather disruptions. a teams and continue strong challenging to supply despite execution consumer environment,

cold captured the we in softer have record. the start warmest In At weather fact, would we in driving fourth weather the sales been historical categories. U.S., further quarter, experienced ranked third as Had quarter, the on trends, outperformance. line September of the in October of sales one earnings and in the with incremental

the across consumers. the throughout Black started period, Friday with with to selling notable have products brands amplified momentum channels. our period However, as This -- and improvements during we resonating further holiday was in have strongly heading critical seen drop into selling our temperatures

and North in our boosted marketing Our engagement traffic as a seen consumer owned significant growth American and in in sales. websites, have in resulting direct-to-consumer conversion best the substantial driven overall rates investments stores to increase both

expirations Our We guidance. about inventories our since unexpected out in XX% laid time, At to our our of PVH remainder upcoming as support been that out significant two earnings strategies positioned those made announcement share diluted business represented and licenses. two plans long-term holiday optimistic The year and of cautiously reflected years spring our the immediately demand. model. We well the we in per the It's brands are to our of are early the have raised transforming set remain accelerate progress approximately revenue. of working.

this Donna complementary key diversify our collectively brands, We're Our license grew business. Vilebrequin our Lagerfeld, over owned DKNY, portfolio to XX% quarter. and Karl further Karan building

to together. beyond expected shape entire risen team our has nearly proud the we've XX%. was expansion as the to across want of Europe, what complemented our International We and continue Klein to for the of organization ever-changing is navigate but remains continue This fiscal AWWG. as market to be future brands we PVH deliver G-III. down Calvin to retail we challenge, only the gain transition our accomplished build thank expectations. to for environment despite by to of call operational partnership strong penetration sales Tommy a our we're not and a delivering channels. to top continue priority and the Hilfiger share the challenges I to profitability action this of platform transformation I'm year, our in with helping

financial let the review Now of XXXX. fiscal quarter us results third for the

quarter owned driven margins by brands. penetration gross and anticipated, our by the quarter Our lower-than-planned billion, of driven above expectations. were GAAP generally earnings greater our and $X.XX Gross outperformance per in expenses. for line than were $X.XX with was significantly share the higher-margin expectations, for diluted better Net margin sales our

down remains quarter. position, in last approximately year's inventory third good from XX% Our

made priorities, of the to driving licensed American bringing our strategic global North us brands, Now expanding review profitability. we've portfolio own let which building reach, brands, in progress our and our complementary include Retail our our of segment growth

we model, constantly our to continue evaluating and greater warehousing our As infrastructure transforming footprint business our drive efficiencies. we're

launch Additionally, in allocate our brands. year, with four we're assessing support talent, while develop in enhancing to enabled combined to growth. investing competencies us our team, investments This technology regional landscape existing to resources business and new

our down of the reduced over brands sustainable to quickly brands just at in these the processes, drive long-term history, multiple and the these to is the advantageous brands and licensing driver, was at highest base, and as cost sourcing risk on top G-III's order the an more represent ensuring no product from Capturing our remain providing global operating over in refining be margins cost issue, our material and would and we've an production quality in our agile become today. business our chain Should generating and focused years tariffs potential enabled our new full production, just build to Throughout This of stream. design, in to one ability us highly has partner marketing, adapted respond profit model long-term ago to our important With XX% single own penetration across accretive priorities. several XX%. We've evolves, on-time distribution vendor higher what order skillfully globe to customers. prominent past. region. done approach savings. control over a income supply capturing the China to operations while potential most a deliveries scale to the efficiencies strategies As with optimizing mitigate China X.XX% on diversifying outerwear, adaptability we're significantly additional confident we've we network and And for sourcing excluding our or a countries in bring dependence

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Additionally, further licensees our amplify and we're reach. our and more closely their impact to coordinate working marketing with efforts

continue our growth We brands. the see outsized in these of to investment results

with another On retail highest some and have modernity year-to-date of hardware DKNY, double last design thousands key vintage collection honors $X a portfolio. from to Karl Karan $X.X blend serving Lagerfeld, women the owned Donna Donna meet to Our and new approximately expectations portfolio, grow year. craft Vilebrequin, in sales the exceeded offers the search and the to the double brand product. of strong and contemporary digits net of and And Karan basis, in archival Karan looks now will potential. by from that digits, seamless We the brands, details and our along with the sales demands expected standout heritage walk across our essence go-forward our launches, of of legacy net the some of modern generated Donna refined in rest this sophisticated together sell-throughs element our system billion needs a Every through meticulously of dressing we see over the to highlights quarter. quarter. sales driving billion long-term of touches today's AURs Karan. I a you delivered jewelry-like of year analyzed of Donna a consumer. while reflects

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expanded retail partners further the allocated for in and space Our floor spring doors fall have and XXXX. expansion

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X globally models fragrance be scent in to to a at next fall fragrances released powerful Donna Boom, group Kaia this brand Fragrance resulted just reflections Hudson, Awards. which collection styling, partner, a unveiled planned as featuring new was all U.S. significant start major off Marie value. is among and X iconic solid launch, celebrity Ballerini, for of earned Our media well Alongside new including of women others, Kelsea new demand a collection awarded campaign fragrance our best delivered year. year's collection. Claire Kate Karan and Cashmere is of the the A Gerber Interprop as awareness This on

holiday season, all collection pieces, our and the handbags of which dresses sell-throughs while For expanded strong elevated we new even social and higher. layering seeing driving AURs are added

brands. us approximately are demand and is give the opportunity. launch, For is the confidence a performance, top global higher example, initiatives, holiday product significant other resonance support product season. social given the American XX% important marketing marketing content during dresses this our of our driving of mind and digital brand impact just shopping strong sales keeping these In the and in expansion Notably, than AURs North

billion over and of from annual to in net the expect across seeking consumers points are the North floor of pieces. XXX over America. sale XX%, with key Donna potential to seamlessly draws continue New by We stylish energy The to sales term. younger quarter Retailers driven in delivered in and wardrobe space long strong another designed transition contemporary from York to appealing Karan a expanding the with attitude inspiration DKNY modern fall. offers new day increasing brand $X sales categories night, for added over

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fashion. spirit. annual infused expect potential sales across name In collection geographies wholesale. classics North with we continue expansion relationship with new early our namesake and retail impressive North North driven to with driven growing another delivering as essence We're captures quarter rock-schek partners, America, key stages Lagerfeld, with into on in by be international engagement of in by aesthetic take sales delivered the and billion the Karl momentum American showcases Parisian-inspired over $X for Karl timeless in XX% in its America in also Lagerfeld an a a bold further to to the wider iconic a designers The fashion, DKNY growth midterm. forward-thinking high last audience. continued consumer momentum extend attitude We year, expect of contemporary increased continued over expansion the seamlessly blended net in

a for offering X,XXX expanded of to lifestyle Our total sale XXX addition America. the nearly contributed of across over of points North

complement Karl nearly Lagerfeld North American doubling in outperform website last direct-to-consumer Internationally, over categories. double-digit stores Karl men's and on. Our markets as through business the sales well to growth improvement openings comp relevance seeing and business year. continues store we for substantially, avenue our with the nice has additional serving is lifestyle women's owned geographies growth sales and new delivering sequential comp continuing acquisition, momentum Since with grown the to as to additional introduce the offering and us as to distribution gain new expand Lagerfeld as a overseas business lean

been received Our fall, new collection as Studio stores pop-ups men's stores. next represented well significant XX% well as attention to is brand's our and Last retail resonating continued KL has international driving business premium renowned collection The drove to grow the will launched engagement XX% product approximately our In with and customers. showcased it sales. department sales, with year. by we product a consumer men's expect press European and of we from into and featuring in momentum our lift this nice international the year, the year over

narrow powerful While this is collections the ignite like and brand reinforce limited, and the is fashion halo distribution help line excitement.

solid Karl accessible jeans in brand's launched further line its year, lifestyle. summer with extends we're and on newly In Lagerfeld Lagerfeld out digital full the into delivered quarter, Karl this a the season. the growth online second offering, premium of partners coming fall line denim a focused line pure-play make sell-throughs complement product consumer. to Our assortment the strengthening the to full featuring our by expanding a our working saw broader jeans presence to

expect of well in As for unlock to brand's positioned future and the XXXX in North we book fall. ahead next next well to Momentum be international substantial spring tracked we year, America demonstrates plan, in look opportunity the order to Europe markets. sales

needs globally. a the building engagement Karl challenging products customers. markets, our product over demand cultivates status product swimwear strong appeal billion our Lagerfeld aspirational spirit that for brand new for refinement The products brand one powerful of while expect and We're navigating with always-in-style $X and for We global fantasy to brand, experiences brand net of its demonstrate on of meet tailored digital. continues We're enhanced seeing further clientele. particularly in brand perfectly potential annual sales and status as diversify through awareness and customers. of the mix and through swimwear such top-tier Vilebrequin, lifestyle in premium and create our memorable sell-throughs partially and premium embroidered sales our offset for by line. environment in in with further retail impacting lifestyle largest experience Expansion our licenses our quarter, our offerings stronger collaborations the driving France, softness desirability are a

our our As we're outdoor line Beach summer an and launch extension business inspired partner on with by that to of a XXXX. our building a hospitality furniture site of will new Club concept,

the and store partner Regis locations Doha, St. Qatar. few past the Cannes we've opened footprint the in months, in in beach and our Brazil. second Macau, U.S. in opened X expanded by retail new first-ever Vilebrequin's We our flagship Over our store just operated beach with club club and Hotel

in Miami XX to several restaurant These concepts underpins opportunity. end expanding the We're club pipeline global next projects along rooftop will partner-operated open our and expansion long-term in for of other the the on track approximately confidence store our clubs, Beach beach beyond. with XXXX Our XXXX. with footprint, open by

brands, a broad that and our channels further range of consumers. to seek that diversify portfolio strategic business. licensed brand and Our propositions ensuring our approach while is with of varying distribution our brands across to geographies new thoughtful lifestyle of complements partnering further out We're appeal range in product with complementary aesthetics priority portfolio unique to a our our brands. bolster We build next offer each further existing that offering differentiated that

are experienced year experiencing powerful well-developed leverage capital-light across brands a and infrastructure, business licensed way distribution foundation a includes global business The a relationships retailers supply our sports foundation. licensed dominance lifestyle a categories, and grow our across expertise, team, is also with team strong to our corporate chain Importantly, and diversified sourcing This growth. network. merchant of of a our management strong best-in-class range

big product our we categories by of recent Target seen our club their reach especially retailers rights have distributing Lions This expand We secured in and growth Meijer. we've distribution like will for within expanded renewed markets NFL The products has select further box successfully Detroit spring, and been license select channel. this We through business, in home continued forward. driver a for increased success anticipate market feel business our and already moving outerwear Nautica, which the where positive Champion opportunities. Walmart, in expand the over last sales time. exited to teams brand's as spring, of with as our well course Halston X this fit, launched brought casual plan of replaced categories offers the brands, Jeans record Nautica to We Nautica distribution inspired introduce we license. function. and as differentiated iconic, year, nautically the We as this Tommy year. modern the designs jeans multiyear business additional well This

strong lifestyle that This customer. ahead. team us demands outerwear, women's and our easy consumer. from elegance to of allows simple fashion NIKE, It the product for goods born a offers iconic we've communities a newest apparel Converse performed appeal quarter, our to amongst Halston business launched creative The for we designed and product extend department Halston's globally, with across and approach season. brand both with global certain lifestyle is Champion, Owned brand runway the recognition Champion better our as younger come us the first excited an Converse, brands. while box, to we their with and also multiple a active we rights sports see agreement differentiated our younger Inc. with offerings to to licensing sport, modern expected We're an and style, the aspirational stores, announced with life. tremendous sports stores legacy is sports offers big including that and athletic distribution, by to youth men's of a from classic meets American the brand iconic and long-standing and global brand ever-shifting apparel. quarter, Last across see of sell enables sporting beyond tiers distribute growth multiple retail which

seek with We has track as for complement further future. brands with growing potential will businesses proven vision Klein continue portfolio of by and Hilfiger. and we our forward demonstrated that our success to opportunities the record G-III work a drive as evolve Calvin our brands significant into to Tommy

we America nonexistent. We in brands, these their the for a for built at virtually single-handedly assume lifestyle grew North wholesale both combined and licenses women's billion businesses $X.X peak. was brands Before business to the women's categories these their

As Tommy potential Hilfiger builds business of outside our for and for brands shelf and the with early aggressively space just budgets under We're of accelerate brands working near G-III acquisition North we reach our Calvin expansion beginning international order with DKNY of plans we're transition retailers America in maintain PVH of along and spring our XXXX of future. one their as our Lagerfeld long stages term. order presence. Expanding to Klein remains Karl largest to to helped has these back global our and maximize PVH, opportunities the global the Vilebrequin, the over and their in Karan. our book of with Donna

including licenses, opportunity provide our Importantly, for Nautica added most and distribution. of Halston an international newly Converse,

We international actively to build support in continue invest business. our and our to capabilities upon

third in expectations brands, with licensed a quarter making from our unlock and exceeding brands sales were United work conclusion, to of share diluted early its owned our business. over In synergies significant States. investments the With companies. XX% as scale XXXX, fiscal and outside In our go-forward we per of in to we delivered our strategic globally. is earnings strong AWWG while with see potential partnership untapped Our our between stages portfolio just we

we at optimistic by our remain of line as brands our remainder is Looking the the bottom of business cautiously delivering the expansion power transforming and year, driven outperformance. owned model margin

quarter. unseasonable environment in as However, and during current grounded fourth of well remain the the as weather realities of the we macroeconomic first consumer our month the

range per XXXX, initiatives. growth outperformance we're billion year full raised guidance shareholder long-term our and significant guidance to and $X.XX as net to our $X.XX For sustainable fiscal commitment non-GAAP progress This to value of guidance earnings be our driving diluted our strategic $X.XX. on sales reflects raising in to third share make the updating we earnings quarter importantly, and

the improving invest The track of sheet proven balance Our X the building future. third we've the for record call and past and we own, our a losses cutting Retail than American our opportunities working. G-III strong of what years better our is gives ever laid now already our segment business. XXXX on stronger outlook. before. I'll long-term to in are as We've The out for Neal new we discussion job well our and what ample success adding need by North the us to a pass expand half infrastructure, plans more than as done to over flexibility fiscal great quarter

million our the year ended our Net stores. October increase Thank of Calvin growth brands the sales $X.XX our to our third you, Morris. in X and closing by line for last Tommy was $X.XX owned comp the a America, net offset the driven the This segment quarter compared XX, strong in North for billion, in wholesale Net previous increases in double-digit despite the expectations. in compared driven in sales to third were $XX This of of the with sales by same previous of Hilfiger Net Klein period were decline sales by billion quarter compares XXXX, quarter. billion sales Retail of $XX billion the strong year. million quarter to and segment $X.XX year's $X.XX were in businesses.

brand and the progress pleased changes. are recently are We the management, making since transformation footprint, we implemented our experience retail in with merchandising segment

the gross XX.X% was previous margin XXXX third segment's percentage in The of to in quarter Our compared compared gross the quarter. XX.X% XX.X% fiscal to in XXXX. was year's percentage fiscal XX.X% third margin wholesale

programs, licensed including margins mix gross were a As anticipated, of sales a greater of than last of brands. lower our to year concentration due

fiscal gross of XX.X% expectations. the of were quarter. impact better to in was operations retail XX.X% the quarter our $XXX changes. million compared gross percentage year, SG&A than positive our third $XXX in 'XX prior Non-GAAP expenses margin by were The segment merchandising compared driven year's million to the previous However, in in the margins slightly our

spring we Karan and with Non-GAAP line marketing higher $X.XX marketing for third a expansion income expectations. the expenses DKNY per our As the for Donna the diluted net results fall The primarily capabilities third in than diluted investments. guided in per to and campaigns. through quarter you significantly first $X.XX recall, previous marketing talent quarter. had technology in the third the the this with or share for of and were better investment year, operational expenses was $XXX.X weighted and $XXX.X million our quarters or million to associated year's share compared were These and

Inventory to remain last $XXX shape. the million balance the sheet. Turning year's good decreased end XX% of levels at in to the million. Inventory $XXX quarter from

AWWG a ended debt the well position had net stock $XXX debt of year. approximately million operations in orders. after of We cash inventory million spring and levels. in compared a our improvement previous the from to to and million in Our our quarter $XX holiday inventory is approximately positioned $XX early position and meet net million of is $XXX reduced of investment flow good repurchases. This We've

this repayment, senior under This borrowings credit secured million only quarter, XXXX notes. debt we seasonal is facility. $XXX primarily After our our outstanding the retired revolving

provides capital accessing which to have well business which we to make optionality ample return drive position, make We investments the additional by the us provides with shareholders. Furthermore, to capital flexibility solid as have as and a us credit liquidity markets. strong investments to profile, financial our a

our of the remain about As optimistic We quarter for fiscal are our outlook, year. the results. with we remainder third cautiously pleased

fiscal unseasonable weather. and for XXXX Our current consumer challenging the outlook environment contemplates

as For approximately the by our sales previous transition initiatives, which the and growth this of fiscal the expecting year's than are more Hilfiger our and we representing now the to year in of of net million of growth driven Tommy net offset out Klein Calvin own approximately of net launches approximately sales, brands those year of full XXXX, the new decline brands we $XXX billion, $X.XX sales X% licenses.

we fiscal of to of sales. approximately XXXX, approach portfolio our to For anticipate total XX% sales continue net go-forward our

adjusted are between basis, raising for $XXX share. diluted income to between net non-GAAP This we and be to and $X.XX XXXX outlook million non-GAAP for a or to on fiscal and net $XXX XXXX. adjusted is $XXX expected income our compares $XXX million XXXX. Fiscal Importantly, now $X.XX $XXX in or EBITDA million between and diluted $X.XX EBITDA per be $XXX expect million per million share to XXXX of fiscal million fiscal of compared

expect Karan the launch we marketing further talent operational million, brand to mentioned, capabilities. and support primarily of to of technology approximately expenses expand $XX previously As expenses related as in for and Donna well incremental drive investments as to engagement our DKNY

modeling. around Let additional context me provide some

gross margin expansion, outperformance As now to we fiscal fourth with continue We rate mentioned, last year. expect have reflecting the owned to end previously we expect to XXXX brands. of quarter gross margins our be up to

Non-GAAP for full year. in to million approximately the XXXX, Regarding approximately be increases as for the expected SG&A, increase amount quarter. fiscal the by same is the the to we quarter $XX dollar expense interest of fourth dollars expect the SG&A third

We new our million. support This principally driven continue approximately of $XX business. is by the in build-out our technology spend to brand capital shop-in-shops to of higher than new expenditures years, expect launches for previous and our

XX.X% a We estimating tax for are fiscal XXXX. rate of

our comments. back closing call repurchases now future in anticipated remarks. concludes the Morris for I my guidance. That We share have to not potential turn will any

support. Operator, entire of you I'm thank to partners quarter, Neal, their our take as we're questions. in fashion. and proud many this and future like leader for our I'm joining our for team's organization, you, all work global thank and a to confident stakeholders G-III's Thank I us today. in our now all some ready would also

[Operator Instructions].

is of question from Bob with to first going the Drbul Our Guggenheim. come line

bit to a just the light outperformance in and increase and us of environment. the impressive walk the just talk quarter see maybe year? for third the the It's the through Can more outlook you takes of puts remainder about the

table bit business shined end, although lasted bit probably toward disappointed. to million $XX that the We could We and a drive go, of warm were be up. all more to some strike issues, quarter us third bare even on quite bare moment fairly little for a quarter. $XX spite in containers cost honestly, logistical because to the the ready a the third we port moment, ready of weather picked left shipping. little in Our we in It nicely was thought million were

did. we of nicely. for follow-up And So question did, into most QX. it is up Part it might go slipped be, QX? of it of kind The did QX shaping

the broken. been for have good. The weather XX very last days sales Our is

outerwear good. classification in Reorders product. sales are much every Our pretty of

Our little business a up opened bit. handbag

business footwear good. Our is

good. Our is sportswear business

first our how in world. it's evaluating all good. did The we're next the struggled it time a shrinking it well we beginning now in to planned something that pretty QX retail. own being And profitable in year, for close be to amazingly we've own our we size and own and breakeven. year, to our to close retail, on grow in We retail, So in significant sell-throughs Historically, an decade, appropriate will shine. this were to now

Karan. Donna that bit little had Karan time in of So We period year, new for Early well. a launched the the for great and a Champion initiatives. learning we first out was for QX great for shipping QX Donna was us. We worked did

Now, much we have Converse. line pretty developed to for go a ready

license, But back in as of all giving go is replace began all spring place don't don't QX bit We in of think we to million should put very gave geared out lose what we're I go. $XX up. it QX. And working we're the 'XX. kind fact get we the very and the expect was of that sales in energy We're sales and of annual Converse much to Guess little all QX So hard a well forward. approximately that shipping. a in We cite which as in we until

it. and If bucks, you have or the a Guess, Calvin our brought business by brought compensated million look that couple scale at hundred we've business of of down for down the retailers we've

So done see. I'd than better even say might what you we've

apologize give I've a left little your a I to Bob. question, So, anything follow-up. worry me if out,

No.

when around of other a side, of the the you QX, I and sort ship just us start takes just you EPS to QX, mean there? can Converse the good. I I on timing think Neal, and guidance, the the more that's then on of some little guess piece just updated bridge give puts the

with start of Converse spring. amazing together place. in going that hopefully, We've talent offices. was will We'll fall pool pretty globally, opening men's distributors a good And great have assumed of support another and piece. license business the the touches as Converse, This me We're owned to operated a women's very in let their this penetration that's putting much got So, our We're from saw we globally. have was put for an out regional XXXX. Converse product team. Converse This the got licensee. partner they and build experienced and we've -- not was in sector. from globally suitable us by

So is is the they've excited by we're are on partnership. opportunities impressive. This The we scalable. for the -- put this believe table us

response? the piece Converse it. the that's of So Neal,

Yes, Bob.

QX on between takes EPS. the of QX and puts and and you just terms bridging in So

model let's I where So fourth is real compared were third simple. the top $XX our probably the $XX story in quarter. we plain quarter, at line. there million and we're on the outerwear, before, The off about in about million guess, off start to

in categories in other broken feel warm about. to feel that That And the We issues did talking performing was now, it's quarter. Morris got a certainly well. hurt happen supply The chain what's see some right we've reasonable unusually for going reasonably weather. we addition while fourth are now, us to the

back going margin to despite performance stronger Gross very percentage the expected. line came off strong quarter, in slightly the the top. than we of terms on in being In third bottom

advertising performance a to spend with strong performance respect really slipped results. so we into that a efficiencies QX warehouse. into prudently, and levels. our very period, inventory bit in little that QX leads amount help some low very got to our nice We of That's SG&A, we've but a overall us a manage QX's to probably a from very Our have QX for strong continue did small results,

quarter. we're So growth. We're X% growth looking the despite taking fourth for down XX% in EPS over top looking top for sales, line still line

what strong And SG&A So to our expect continue quarter. the we judiciously. we are be to in gross we and Those up fine-tune monitor our percentages margin nice. fourth

the of is come question Capital going to next line Owens Markets. with from Ashley KeyBanc Our

just of subject how three on quickly And the there? say, the margin about expected ago? fourth up magnitude relative some Maybe into keep out promotions to months puts of then wanted the talk holiday insight Just gross quarter. panning expectations, with in to really be and expansion, to takes let's just are your

Yes.

increases brands. we result ability wider That's own We've as been expect year. margin penetration we that distribution been licensing brands, royalty a we got that expect gross helpful. to So network, as seeing to pay income. a been don't Freight got higher of this that know on have and our and shift. the We've percentages have moderate. those to a shift We've look, generate we

overall, respect little seen been been part extreme has to where have there. ahead something we're in to that haven't what anticipated. extreme of of in really bit promotionality, kind It any It be into we it's of year. pressures we we out process, our the really beyond With is had So expected very early not our a businesses. build and the we

not is aggressively. retailer The promoting

seasonal We to. our I there appear -- They're that there's are abnormal. move the Conversely, out the check. appears buying. throughout it or unique promoting There to all consumer certainly there is not need community. doesn't through not aren't retailers world no think has There's it issue. the gone are -- the aren't that is is It's product. promotions that doing on. in fashion heavily And dumping that the margins nothing

sorry. more on picture, bigger one Just

next Would margin year, So bottom flow above curious to through. Obviously, line growth year. this your you year, slightly line and the bottom line for the line? expansion last continue growth sales confidence had identified just significant grown any gauge for projected be opportunity momentum levels of then should to you've bottom year? the going And growth buckets outpace next in sales the additional into leverage

Yes.

specifics about bullish about for our look, too on in brands launches what's to bit on us new but the was you about for business. Very We're for year, new very little performing. all So the next new bullish very discussing. are going that -- give early the excited we're Morris a how the brands our

we Those where now gross be to obviously, terms brands continues perform our think own again, lever. positive our land a before. levels at the have to margin of a about would a I same launching we the that shift from We're standpoint, portfolio I businesses. few licensed think, in in been

spend on leveraging did of have big advertising. terms SG&A, In this on the year we

that for I us. a baseline think sets good

got I we're prospectively, we've launching. businesses that new still think some

start spend into those base a to the we'll continue two and advertising but we to the grow brands. those, higher Karan level of lever DKNY for as So look see the of certainly on we'll spending Donna business from sales

going to next come of Mauricio is Our the with Serna line from UBS. question

because Karan biggest details in to the should Nautica, called about about QX? wanted stepping Donna think back, revenues? wanted year to shift? us you the just could since of had on Karan mainly the on But fair like it what for year's launches on really this to get a basis. of brand margin mix while. on a on to -- -- think what was even assume the some step nice a is how the Donna I It remember like then it Maybe to contribution contraction like but just just a brand of like a that tell XXXX, a -- it's more healthier we within and brands you've sorry, the continue bit fiscal as was is margins we 'XX, in on see outperformance. could margin, little gross one guidance about brand And was calendar expanding understand taking drove like-for-like revenue brands. outperformance shift year like just 'XX, gross it And more the the I

of elimination them at Donna The The for talent study the have question, beginning least with was G-III positioning married well incredibly product there up launch Donna to focus we was the where marketing of for we of was were The and Thank perfectly carefully categories archives the time as the their Karan mix. that affordable you PVH, and some it. price with Karan your Mauricio. an affordable open point, to for pool to executed. at bring ability the

into it's to in surprise other a Karan sportswear it's most brands, a of to price elevated, XX% out, at dress women the absolute handbag or bargain. higher walking the a a that pair although most categories an point or putting than a we're or Although or see shoes store it sweater Donna our

we retailer, margins the us. consumer. happy provided make it quite friends We and with we So were with the friends made with the that

better brand. colors prints in to are development some we're it, begin that entrenched that than a that's is that some you -- performing areas. worthy the you learn you an lesser and that some amazing more of Now as amount launch further eliminate there's product others, There shine,

and of brand. what quality a count, price every sales So careful of The absolutely with continued up product you We through let's sales. that of is expect and the door of of the careful the the quality their there. out use points categories analysis term retailer period, distribution, we've needs marketing growth There's only from Dana. expanded be to can support put better should major but going has expanded bought has

replacement that Nautica gave try care by possible that And Tommy more very very, fade Halston. of as of Halston brand. a We've ABG, excited the needed on We management the design from not the side IP always to the Hilfiger it. jeans It's guardian brand. managing back tuck we'll the the for the business of company effectively Tommy the of as the Halston Tommy and management company. it out categories to speaks of replace power who's you basically than as brand. elements we're to Jeans scale Jeans, the Nautica. is We we and lot team a really integrity It's we It replaced an brought on slip, utilizing the So off business. as done some in Tommy took Tommy

be say we good a job great back with we believe with with to brands. we would couple maybe of Nautica and what did I'd So a that continue Tommy other a replaced deal and of PVH with can give Nautica,

has the of of of -- to evaluating, consideration vertical scale lot not business So view. the for givebacks really this this do and seems a with on We're is retailers' some businesses. with -- our be to we're consistent

on budgets have department dependency on and a We space. cooperation high store

So a on new Everybody all vocation space we expanding it and with full-time not an easy making period space It's at work of in retaining is hard for G-III. brands. facets. work

your little just financial far up Mauricio, as contribution. on follow as bit, question And a to the

We've think at this I the we've margins what got year. year. look for accomplished improving gross

with was is going As spend mix that be before, -- how that a got we're current to possible it launching. our an we've I licenses, to It's that. own In rather function continue certainly SG&A unusual. that business for the license the is new just of businesses said us year, the those

if pleased additional has mention So I the very that we're not strip you now quiver with future. which the out, also our in arrow performance, us gives an the to as really that improved think performance for retail well,

is come with going the And Paul Barclays. to question last of Kearney our line from

think do much the you you portfolio can go XX% thoughts to you next potentially lower need And manufacturing, if a the anticipate year, go-forward quickly? if compared exposure Can to inventory total? inventory of current more could speak to tariffs the become bring position early? inventory of you how on and on the the how And any to for that you're in do planning China provide how reality,

it company was It But bring to down honestly. So as manageable China whatever immigrant. about need in wasn't quite to before. come are us. but really founder the tariffs unknown, aggressive are -- an an we thank Might a country him. not of business design-based company. who ability done of make anybody or The good for your is say We've you an I to a was we're his factory a for aware, as about fashion for It money. the base, his prepared scale question, that It's Paul. be our would that one. imposed entrepreneur It's was not from

Northern people a leadership They're my And side. that's on of overseen they're company flexible. all Korea. with in not the China on in was next And do basically South very, a we move very basically of out were tie. Korea, there And and City Korea. with South company, us very to ground Mongolia. of footprint a we From to that go brought have home presence. as we We there. we for there's I boots and to York most fashion And York been was We're we South XXXX, New built have We Caribbean-based entire evolved, team about We're you'll Indonesia. Everything And They're to company If and product since them. we're a produced a in he was produced City. flexible. the years. what it time countries, do. been And company, anywhere office They're over a Jordan. here of need where our today, West has China been suit when the have factory, all machine, our we find the the joined New brought in business dad, very his by China, places. with XX to need is in gentleman selling do So our company. the were to went

years several to manage. we competitive were as the that as ago, do to, better about but our landscape. than we're believe something that's And I be. company think major anybody I business at we can. our and I don't said think China, can XX-some-odd for about that, down a coat advantage I something I it we we as And from China look if script, I believe XX%. not So it's in the forward eliminate that's you can secure XX%. percent It's can brought

it would say political through is long to and strategy. very tariffs wouldn't thrown what at us I take us accommodate So

Yes.

in Just portfolio. in in and been That's the across where inventory brands The to the terms inventory they've go-forward shape. excellent of the levels levels compared are non-go-forward.

line size the X decreases we prospectively, in first growth for that prospectively. think I would future the sales expect probably quarters, not we're seen with more you've

now or would any back Goldfarb like I over hand further conference for to remarks. the Morris closing to And

you for Thank you thank you and wish an interest, season. for we amazing your holiday all you -- support, your Thank very much.

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

disconnect. now may You