G-III Beats Estimates, Raises Outlook

Second-quarter sales increase leads company to 164 percent profit gain.

G-III Apparel Group topped second-quarter profit expectations and did what many of its retail counterparts could not — raise expectations for the year.

The company’s second-quarter income jumped 164 percent to $3.6 million, or 17 cents a diluted share, from $1.4 million, or 7 cents, a year earlier. Earnings per share came in 7 cents better than the 10 cents analysts projected.

Sales for the three months ended July 31 increased 20.9 percent to $304.2 million from $251.4 million.

G-III produces and distributes outerwear, dresses, sportswear and other categories under a number of licensed brands, including Calvin Klein, Kenneth Cole, Tommy Hilfiger, Jones New York, and Levi’s. The company sells to major department stores and also has over 200 stores.

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“We have a powerful opportunity to continue to diversify our business, further penetrate key categories and layer on promising new organic growth initiatives, such as our multi-category launch of the Ivanka Trump collection and the rollout of full-priced Wilsons stores, which is still in a test mode,” said Morris Goldfarb, chairman and chief executive officer. “Our most-recent acquisition, Vilebrequin, is performing well and provides us with a premier status brand in a new category.”

G-III now expects its earnings this year to range from $3.30 to $3.40, ahead of the $3.20 to $3.30. Shares of the company popped up 7.4 percent to $50.50 in early trading on Wall Street today.