Coming out of the pandemic last year, we were in a historically low-level position and did not have adequate inventory to drive our business.
Comin out strong future instrumental update#
Before I provide an update on our key priorities, I want to address our inventory levels. Non-GAAP net income per diluted share was $0.39 in the current period compared to $0.41 in the second quarter last year. Net sales for the second quarter was $605 million, an increase of 25% compared to last year's second quarter net sales of $483 million. We continue to evaluate and align our forward production to deliver the right merchandise across categories with the right price points for the given time. We pivoted our assortments early in the year as consumers return to in-person activities and to work. Our merchant and sales teams responded to the decline in athleisure and a shift in demand towards more polished and dressy categories. We experienced growth across almost all categories, with particular strength in dresses and career wear and robust growth in handbags. Now turning to the quarter's results, where we continue to see significant year-over-year sales growth of our power brands: DKNY, Donna Karan, Karl Lagerfeld, Calvin Klein and Tommy Hilfiger. Neal will provide more details on this shortly. Given the challenging environment that has rapidly developed, along with our retail partners being more cautious on the timing of inventory, we're taking a more conservative view for the balance of the year and adjusting our guidance accordingly. Despite solid top line performance, we were not immune to inflationary pressures and elevated costs in areas such as warehousing, transportation and raw materials, which led to bottom line net income per diluted share below our guidance. G-III has a culture of entrepreneurship, agility and flexibility with a world-class leadership team and proven track record of navigating through tough environments. We remain confident in our strategy as the overall fundamentals of our business are incredibly solid. We continue to manage the business prudently with a keen eye towards gaining market share and building on our strengths, while further expanding our global reach. In the second quarter, we saw a strong demand for our brands and met our top line expectations. Chairman & CEO - Thank you, Neal, and thank you, everybody, for joining us. Morris Goldfarb, G-III Apparel Group, Ltd. I will now turn the call over to our Chairman and Chief Executive Officer, Morris Goldfarb.
Also disclosed in our press release for your reference our last year's GAAP to non-GAAP results by quarter. We have provided reconciliations of these non-GAAP financial measures to GAAP measures in our press release, which is also available on our website. In addition, during the call, we will refer to non-GAAP net income, non-GAAP net income per diluted share and adjusted EBITDA, which are all non-GAAP financial measures. The company undertakes no duty to update any forward-looking statements. Important factors that could cause actual results of operations or the financial condition of the company to differ are discussed in the documents filed by the company with the SEC. Forward-looking statements are not guarantees, and actual results may differ materially from those expressed or implied in forward-looking statements. Before we begin, I would like to remind participants that certain statements made on today's call and in the Q&A session may constitute forward-looking statements within the meaning of the Federal Securities Laws. I would now like to hand the conference over to your speaker today, CFO, Neal Nackman.
(Operator Instructions) Please be advised that today's conference is being recorded. Welcome to the G-III Apparel Group Second Quarter Fiscal 2023 Earnings Conference Call. CFO & Treasurer = Conference Call Participants = * Edward James Yruma Piper Sandler & Co., Research Division - MD & Senior Research Analyst * Frederick William Gaertner Wells Fargo Securities, LLC, Research Division - Associate Equity Analyst * Jay Daniel Sole UBS Investment Bank, Research Division - Executive Director and Equity Research Analyst of Softlines & Luxury * Noah Seth Zatzkin KeyBanc Capital Markets Inc., Research Division - Research Analyst * Paul David Kearney Barclays Bank PLC, Research Division - Research Analyst = Presentation - Operator - Good day, and thank you for standing by. Q2 2023 G-III Apparel Group Ltd Earnings Call NEW YORK (Thomson StreetEvents) - Edited Transcript of G-III Apparel Group Ltd earnings conference call or presentation Wednesday, Septemat 12:30:00pm GMT TEXT version of Transcript = Corporate Participants = * Morris Goldfarb G-III Apparel Group, Ltd.
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