On December 1, 2022, G-III announced its third-quarter financial and operating results. Among other items, G-III reported that “higher inventory levels are due to our accelerated production calendar, which was in anticipation of longer supply chain lead times. Our inventory is comprised of current purchases and guided by our order book. During the quarter, the higher inventory levels caused logistical challenges within our distribution centers. This resulted in significant one-time charges in the third quarter, that were above our expectations, which adversely impacted our bottom line by approximately $0.40 per diluted share”.
On this news, G-III’s stock price fell $9.66 per share, or 44.66%, to close at $11.97 per share on December 1, 2022.