Form 4: G-III Apparel Executive Vice President Jeffrey Goldfarb Reports Stock Transactions

Executive Vice President Jeffrey Goldfarb reports the vesting of performance stock units and shares withheld for tax obligations.

Summary

• Jeffrey David Goldfarb, Executive Vice President of G-III Apparel Group, Ltd., reported changes in beneficial ownership of company stock on April 1, 2024.
• 23,862 Performance Stock Units (PSUs) vested, each representing a contingent right to receive one share of common stock.
• These PSUs were granted on March 16, 2021, and were subject to the satisfaction of two metrics over a three-year performance period (fiscal years 2022-2024): three-year cumulative Adjusted EBIT and three-year average ROIC.
• The company achieved 150% for both metrics during the performance period.
• 20,304 shares were withheld to satisfy the reporting person's tax obligation in connection with the vesting of the PSUs and 15,908 restricted stock units (RSUs).
• Following these transactions, Goldfarb directly owns 505,470 shares of common stock.
• Goldfarb also has indirect ownership through the Amanda Julie Goldfarb 2007 Trust (24,896 shares), JARS Portfolio LLC (47,170 shares), and Ryan Gabriel Goldfarb 2009 Trust (2,200 shares).

Sentiment

Score: 7

Explanation: The sentiment is positive as the vesting of PSUs indicates that the company met its performance targets. The executive's increased stake in the company is also a positive sign.

Positives

• The vesting of PSUs indicates that G-III Apparel Group met its performance targets for Adjusted EBIT and ROIC, achieving 150% for both metrics.
• Executive Vice President Jeffrey Goldfarb's increased stake in the company aligns his interests with those of shareholders.

Industry Context

Executive compensation and stock ownership are common practices in the apparel industry to align management's interests with those of shareholders. Performance-based equity awards, such as PSUs, are often used to incentivize executives to achieve specific financial goals.

Comparison to Industry Standards

• G-III Apparel's use of PSUs with Adjusted EBIT and ROIC metrics is consistent with industry practices for incentivizing executive performance.
• Comparable companies like PVH Corp. and Tapestry, Inc. also utilize performance-based equity awards tied to financial metrics such as revenue growth, profitability, and return on capital.
• The specific targets and vesting schedules for these awards vary depending on the company's strategic goals and industry conditions.

Stakeholder Impact

• Shareholders may view the vesting of PSUs as a positive sign, indicating that management is incentivized to achieve strong financial performance.
• Employees may be motivated by the company's achievement of its performance targets.

Key Dates