G-III repays $75 million of debt in Q2, has $825 million of liquidity

By Devika Patel

Knoxville, Tenn., Sept. 11 – G-III Apparel Group Ltd. repaid $75 million of debt last quarter yet still ended the quarter with a healthy liquidity balance of $825 million.

“We ended the quarter in a strong financial position with $825 million in cash and availability, which is after repaying $75 million of debt,” chairman and chief executive officer Morris Goldfarb said on the company’s second quarter ended July 31 earnings conference call on Sept. 7.

“The strength of our balance sheet continues to remain a top priority and provides us with the flexibility to invest in the future growth,” Goldfarb said.

Net debt fell $156 million year-over-year.

“We ended the quarter in a net debt position of approximately $268 million compared to $424 million in the prior year,” chief financial officer Neal Nackman said on the call.

“This decrease in net debt is primarily a result of cash flows from operations as well as the large decrease in our inventory levels, offset by $36 million used for stock repurchases,” Nackman said.

G-III is a New York-based designer, manufacturer and marketer of branded apparel and accessories.

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