G-III Apparel Group Ltd (GIII)

Operating profit margin

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Operating income	US$ in thousands	283,343	-109,462	311,093	82,842	227,654
Revenue	US$ in thousands	3,092,530	3,227,190	2,774,520	2,048,160	3,150,670
Operating profit margin		9.16%	-3.39%	11.21%	4.04%	7.23%

January 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $283,343K ÷ $3,092,530K
= 9.16%

The operating profit margin of G-III Apparel Group Ltd has shown some volatility over the past five years. In January 2020, the operating profit margin was 7.23%, indicating that for every dollar of sales, the company generated approximately 7.23 cents in operating profit.

However, the operating profit margin decreased to 4.04% in January 2021 before rebounding significantly to 11.21% in January 2022, showing an improvement in operational efficiency and profitability. This positive trend was reversed in January 2023, with the operating profit margin turning negative at -3.39%, which could be a cause for concern as it indicates that the company's operating expenses exceeded its operating income.

The most recent data point as of January 2024 shows the operating profit margin at 9.16%, demonstrating a recovery from the negative performance in the previous year but still below the peak level seen in January 2022.

Overall, the fluctuating trend in G-III Apparel Group Ltd's operating profit margin suggests a degree of inconsistency in managing its operating expenses relative to its revenue generation over the years. Further analysis of the company's cost structure and revenue drivers may be necessary to fully understand the factors influencing its operating profit margin.