G-III shares jump in strong 2Q results, guidance
NEW YORK (AP) — G-III Apparel Group Ltd. said Wednesday its fiscal second-quarter net income fell 13 percent, as expenses related to a recent acquisition offset higher sales.
The results beat Wall Street predictions and the company boosted its full-year guidance. G-III shares rose 6 percent in morning trading.
For the quarter ended July 31, the New York-based clothing company earned $1.4 million, or 7 cents per share, down from $1.6 million, or 8 cents per share, in the same quarter last year.
Excluding charges related to its acquisition of luxury men's swimwear and resort clothing maker Vilebrequin, G-III said its adjusted profit was 13 cents per share.
Revenue rose 9 percent to $251.5 million from $230 million a year ago.
Analysts, on average, expected a profit of 7 cents per share on $250.5 million in revenue, according to FactSet. Analyst estimates typically exclude one-time charges.
For the fiscal year ending Jan. 31, G-III said it now expects to post a profit of $2.68 to $2.78 per share, up from its previous prediction of $2.62 to $2.72 per share. Excluding one-time charges, the company said it now expects a profit of between $2.74 and $2.84. The company's previous guidance didn't exclude one-time items.
G-III also raised its full-year revenue prediction to about $1.41 billion, from about $1.35 billion.
Analysts, on average, expect a fiscal-year profit of $2.71 per share, with estimates ranging from $2.68 to $2.72.
Wall Street was predicting revenue, on average, of $1.36 billion, with estimates ranging from $1.35 billion to $1.37 billion.
For the current quarter, G-III said it expects a profit of $2.25 to $2.35 per share, on about $570 million in revenue, while analysts expect a profit of $2.34 per share on $551.1 million in revenue.
G-III sells coats and dresses under brands such as Marc New York, and has fashion licenses for brands including Calvin Klein, Sean Jean and Kenneth Cole, as well as licenses with professional sports teams and colleges.
In morning trading, G-III shares rose $2.40, or 7.3 percent, to $35.28 after jumping as high as $35.53 shortly after the market opened. That easily passed their previous 52-week high of $32.90.