G-III Apparel stock surges after earnings beat expectations and full-year outlook raised


Shares of G-III Apparel Group Ltd. GIII,
jumped 5.4% in pre-market trading on Wednesday, after the apparel and accessories company, whose brands include DKNY, Calvin Klein and Tommy Hilfiger, reported higher-than-expected third-quarter tax profit and corresponding revenues, and raised its outlook for the year, as “strong demand” helped offset the pressure on margins due to rising costs. Net income for the quarter ended Oct. 31 rose to $ 106.7 million, or $ 2.16 per share, from $ 63.2 million, or $ 1.29 per share, a year ago. The FactSet consensus for earnings per share was $ 1.79. Sales rose 22.8% to $ 1.02 billion, matching the FactSet consensus. Cost of sales increased 26.3% to $ 667.9 million, for a gross margin of less than 34.2% from 36.0%. The company raised its EPS forecast range for the year ending Jan.31 to between $ 3.67 and $ 3.75 from $ 3.10 to $ 3.20, and raised its sales outlook to 2.77 billion dollars against 2.70 billion dollars. “Given the strong demand we are seeing in our brands, we are well positioned for the holiday season,” said Managing Director Morris Goldfarb. “We are raising our guidance for the full year and expect to achieve our highest annual profit in our business history.” The stock has fallen 9.0% in the last three months through Tuesday while the S&P 500 SPX,
gained 1.0%.


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