Frederick 'Will' Gaertner's questions to G-III Apparel Group Ltd (GIII) leadership • Q2 2025
Question
Frederick 'Will' Gaertner questioned the SG&A spending trajectory for the second half of the year, the expected duration of the current heavy investment cycle, and the visibility into the order book for the U.S. versus Europe.
Answer
Executive Neal Nackman projected a 'significant increase' in Q3 SG&A, with the majority of the incremental $60 million annual spend concentrated in the second half. CEO Morris Goldfarb added that the high marketing spend as a percentage of sales will normalize as brands scale. Regarding the order book, Goldfarb noted it is more 'elastic' in North America due to an everyday delivery model, whereas the European business currently operates on a tighter inventory model with two main deliveries.