G-III Apparel Group Ltd (GIII)

Days of inventory on hand (DOH)

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Inventory turnover		4.10	4.19	3.21	4.02	3.63	3.24	2.69	4.85	4.89	5.17	4.42	5.97	4.90	4.90	4.36	5.62	5.39	4.51	3.42	5.32
DOH	days	88.98	87.20	113.63	90.79	100.47	112.49	135.86	75.30	74.62	70.65	82.66	61.10	74.46	74.45	83.67	64.92	67.66	80.87	106.59	68.63

January 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.10
= 88.98

The days of inventory on hand (DOH) for G-III Apparel Group Ltd have fluctuated over the past several periods, indicating potential changes in the efficiency of managing inventory. On Jan 31, 2024, the DOH stood at 88.98 days, which was higher compared to the previous period (Oct 31, 2023) at 87.20 days. This suggests that the company may be holding onto inventory for a slightly longer period, which could tie up working capital and potentially lead to increased carrying costs.

Looking further back, on Jul 31, 2023, the DOH spiked to 113.63 days, indicating a significant increase in the time it took to sell inventory, possibly pointing to overstocking or slower sales. However, there was a slight improvement in inventory management by Apr 30, 2023, where the DOH decreased to 90.79 days.

The trend continues with fluctuations in DOH over preceding periods. Notably, on Jul 31, 2022, the DOH was at 135.86 days, suggesting challenges in effectively managing inventory levels. Contrastingly, on Jan 31, 2022, the DOH decreased to 74.62 days, reflecting potential improvements in inventory turnover efficiency.

Based on this analysis, G-III Apparel Group Ltd's management may need to closely monitor and adjust inventory levels to optimize working capital utilization and minimize carrying costs. Furthermore, strategic inventory management practices should be implemented to ensure efficient turnover of inventory and maximize profitability.