The following is a summary of the G-III Apparel Group, Ltd. (GIII) Q2 2025 Earnings Call Transcript:

Financial Performance:

• G-III Apparel Group reported Q2 2025 net sales of $645 million, meeting expectations.

• Gross margin expanded by 90 basis points, driven by strong sell-throughs and higher margin-owned brands.

• Non-GAAP earnings per diluted share significantly exceeded expectations at $0.52.

• Inventory decreased 24% from last year, aligning well with future sales projections.

• The financial outlook includes a full-year net sales guidance of $3.2 billion and raised EPS guidance of $3.95 to $4.05.

Business Progress:

• The company announced a new global licensing agreement with Converse for men's and women's apparel.

• Strategic investment in AWWG increased G-III's ownership to just under 20%, aiding in the expansion across the Iberian market and global growth.

• Significant portfolio growth with Donna Karan, DKNY, Karl Lagerfeld, and Vilebrequin delivering strong sales, particularly in North America.

• Plans to further invest in marketing, technology, and operational capabilities to support brand engagement and expansion.

Opportunities:

• New licensing agreement with Converse to expand active lifestyle business and global distribution.

• Partnership with AWWG expected to drive substantial growth in the European market mixed with opportunities in North America for brands like Pepe Jeans and Hackett.

• Increased push into marketing and promotional activities to support brand launches and expansions, set to further market reach and consumer engagement.

Risks:

• Transition out of Calvin Klein and Tommy Hilfiger licenses requires balancing resources, which could impact operational efficiency.

• The economic environment in Europe presents challenges, affecting consumer spending and market dynamics.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.