For the first quarter G-III net sales increased 3.6 per cent from the same period last year. Net income for the quarter rose 21.2 per cent. Gross profit ticked up 0.6 per cent in the period while operating profit was up 10.7 per cent. G-III generated around 86 per cent of its fiscal 2019 revenue in the US and sourced around 61.5 per cent from China.

G-III offers apparel and accessories under brands that include DKNY, Donna Karan, Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard. It also has fashion licenses under Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Levi’s and Dockers.

The company has been seeking to diversify its sourcing network by arranging to move some production out of China and has also succeeded in obtaining price concessions from its Chinese vendors. In addition, it has obtained price increases from some of its customers in the US. G-III estimates that the incremental 15 per cent increase in tariffs for the remainder of fiscal 2020 will increase its cost by approximately six million dollars. However, the company has not factored any future increases in tariffs on additional goods imported from China into the US in its fiscal 2020 guidance.