G-III Apparel reported results for the fourth quarter ended January 31, 2024.
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Net sales for the fourth quarter ended January 31, 2024 decreased 10.5% to $764.8 million from $854.4 million in the prior year’s quarter.
Net income for the fourth quarter was $28.9 million, or $0.61 per diluted share, compared to a net loss of $(261.1) million, or $(5.54) per share, in the prior year’s quarter.
Last year’s fourth quarter included a $291.5 million non-cash goodwill impairment charge, net of tax, or $6.19 per share.
Non-GAAP net income per diluted share was $0.76 for the fourth quarter compared to $0.41 in the same period last year.
Non-GAAP net income per diluted share excludes
(i) asset impairments of $6.5 million in the fourth quarter compared to $349.5 million in the prior year’s fourth quarter,
(ii) expenses related to the Karl Lagerfeld transaction that include incentive compensation of $0.6 million in the fourth quarter and incentive compensation, professional fees and amortization of inventory adjustments of $0.3 million in the prior year’s fourth quarter,
(iii) non-cash imputed interest expense of $0.2 million in the fourth quarter related to the note issued to seller (the “Seller Noteâ€) as part of the consideration for the acquisition of Donna Karan International compared to $1.8 million in the prior year’s fourth quarter,
(iv) one-time expenses, primarily related to our DKNY business in China, of $3.1 million in the fourth quarter,
(v) the gain recorded from the reduction of the earnout liability related to our Sonia Rykiel acquisition of ($1.0) million in the fourth quarter,
(vi) the adjustment to the investment gain in the fair value of the Company’s minority ownership in Karl Lagerfeld that it held prior to the Company becoming the sole owner of the Karl Lagerfeld entities of $3.9 million in the prior year’s fourth quarter and
(vii) bonus accrual expense reversed due to the goodwill impairment recognized of $(17.9) million in the prior year’s fourth quarter only.
The aggregate effect of these exclusions was equal to $0.15 per diluted share this year’s fourth quarter and $5.95 per diluted share in the same period last year. ■