Clothing Group G-III (NASDAQ:GIII) shares are losing ground Thursday on the back of disappointing fourth-quarter results and fiscal 2025 forecasts that indicated the company could post a loss.
The company earned profit of $0.76 per share, up from $0.76 per share profit of $0.41 per share in the prior-year quarter, on sales declining 10.5% to $764.8 million. While profits beat expectations by 8 cents, sales were $52.2 million lower than expected.
Cash and cash equivalents rose to $507 million from $191.6 million, while inventories fell 27% to $520.4 million.
For the first quarter of 2025, the company expects adjusted earnings to be between a loss of $0.10 per share and flat compared to a profit of $0.13 per share a year earlier on sales of between $ 615 million and $606.6 million. The Street’s consensus estimates are calling for profit of $0.11 per share on $608.6 million in sales.
For fiscal 2025, G-III Apparel (GIII) expects adjusted profit of $3.50 to $3.60 per share on sales of $3.2 billion. This is down from prior year earnings of $4.04 per share on sales of $3.1 billion and is shy of estimates of $3.88 and $3.22 billion, respectively.
Full-year adjusted EBITDA is expected to be between $290 million and $295 million versus $324.1 million in fiscal 2024.
Shares of G-III Apparel (GIII) fell 15% to their lowest level since October and below their 200-day moving average for the first time since June.