G-III Apparel Group | $GIII Stock | Shares Soar After Earnings Beat & Rosy Outlook

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G-III Apparel Group (NASDAQ: GIII)

 

Shares of G-III Apparel Group Ltd. rose 7% in premarket trading on Thursday, after the clothing and accessories maker reported second-quarter earnings that beat estimates.

The company attributed the upbeat performance to its wholesale business operations, with revenue growing 16% from the year-ago period.

Investors were further excited after G-III lifted its earnings and revenue guidance for the full year. GIII stock has climbed nearly 19.4% since the beginning of the year while the S&P 500 has gained almost 8.0%.

GIII Earnings & Outlook

Net income during the quarter was $10.1 million, or $0.20 per share, compared to a net loss of $8.6 million, or $0.18 per share last year.

After stripping amortization and one-time items, the company earned $0.22 per share beating the consensus estimate of $0.03 per share. G-III reported adjusted earnings per share of $0.15 in the year-ago period.

Revenue increased to $624.7 million from $538.0 million during the same period last year. Wall Street had projected revenue of $590 million.

G-III raised its outlook for the full year and expects per share earnings of between $2.45 to $2.55 from the previous guidance of $2.20 to $2.30. Full year revenue is expected at $3.06 billion from the previous projection of $2.97 billion.

The company expects EPS in the range of $1.72 to $1.82 on sales of $1.08 billion for the current quarter. Analysts estimate EPS of $1.87 on $1.06 billion sales for the third quarter and EPS of $2.35 on $2.98 billion for fiscal 2019.  

G-III Apparel CEO Comments

G-III Chairman and Chief Executive Officer, Morris Goldfarb commented, “We are pleased to report second quarter results that exceeded our expectations. Our outperformance was driven by excellent results across our wholesale businesses. We are successfully leveraging our five global power brands to deliver market relevant product that resonates with today’s consumers. We have a world class portfolio of owned and licensed brands that we believe position us for long-term growth in sales and earnings.”

G-III Apparel Group Ltd Company Profile

G-III Apparel Group Ltd. manufactures and distributes outerwear and sportswear. It operates through the following business segments: Wholesale Operations and Retail Operations business.

The Company sells products under its own brands, including DKNY, Donna Karan, DKNY Jeans, Vilebrequin, G.H. Bass, Bass, Andrew Marc and Marc New York; licensed brands, and private retail labels.

The Wholesale Operations segment consists of products and non-licensed products segments. It also includes sales of products under the company’s licensed brands. The Retail Operations segment includes Wilsons Leather and G.H. Bass stores, as well as Calvin Klein Performance stores.

GIII provides apparel under recognized brands to retailers such as Macy’s, Bloomingdale’s, Nordstrom, Lord and Taylor, The Bon-Ton Stores, Dillards, JC Penney, and Kohl’s. The firm competes with Delta Apparel Inc., Differential Brands Group Inc. and Canada Goose Holdings Inc.

G-III Apparel Group was founded by Aron Goldfarb in 1974 and is headquartered in New York, New York. –CNNMoney

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