Better sales helped G-III Apparel Group Ltd. narrow first-quarter losses, and chairman and chief executive officer Morris Goldfarb said the company would push for more market share, possibly through another acquisition.
This story first appeared in the June 8, 2010 issue of WWD. Subscribe Today.
The firm, which markets outerwear, dresses and sportswear, narrowed losses for the quarter ended April 30 to $1.4 million, or 7 cents a share, from $6.8 million, or 41 cents a year ago. Sales for the three months ended April 30 grew 43.4 percent to $154.3 million from $107.6 million. G-III outperformed Wall Street’s projections for both the top and the bottom line, as analysts had the firm pegged for losses of 19 cents a share on sales of $134.8 million.
“Our order book is considerably higher as compared to last year, and we expect continued growth in sales and profit,” Goldfarb told analysts on a conference call.
The company projected earnings this year of $2.20 to $2.30, ahead of the $2.17 analysts were forecasting.
“We have the resources and the capabilities to do nearly anything in the apparel industry we set our minds to,” Goldfarb said. “We’ve taken on difficult challenges in difficult times and we’ve succeeded. We continue to evaluate potential transactions. We think there is an excellent opportunity for us to continue to complete accretive transactions.”
G-III acquired Andrew Marc and Wilsons The Leather Experts Inc. in 2008, and has a cash on hand of $17.9 million to help add more brands.
Goldfarb also acknowledged sourcing costs are on the rise, but said the company was able lock in some orders early.
“Labor is in demand,” he said. “There is pressure on factories in China. We’re controlling it well. Costs of material are up. Most of our bookings with our factories were done quite early. We were fortunate that the retailers gave us our bookings early as well.”
The firm produces Calvin Klein, Jones New York and Tommy Hilfiger goods under license. Shares of G-III fell nearly 5 percent Monday to close at $26.24 in over-the-counter trading.