NEW YORK — G-III Apparel Group Ltd. reported gains in third-quarter profits, and said it is growing in part through door expansion and that it intends to grow through acquisitions.
For the three months ended Oct. 31, net income attributable to G-III rose 10.9 percent to $48.3 million, or $2.37 a diluted share, from $43.6 million, or $2.16, last year. The quarter’s earnings per share included 6 cents of expenses in connection with its acquisition of Vilebrequin, which the firm revealed in August in a transaction valued at $106 million. Net sales rose 6.6 percent to $543.5 million from $510 million.
Morris Goldfarb, chairman and chief executive officer, said, “Even though the hurricane in New York caused an interruption of shipping during our peak days this quarter, we were still able to exceed our earnings targets as a result of realizing higher gross margins. We remain confident in our ability to achieve our forecasts for the year.”
Goldfarb added that the firm is growing through “improved penetration and door expansion. We are also excited to continue to reinforce our growth through acquisitions. Vilebrequin is an exceptional global status resort brand that we expect to grow beyond its leadership position in the status men’s swim and resort market into a true lifestyle brand.”
He told analysts in a conference call that Calvin Klein women’s suits and suit separates continues to be “one of the fastest-growing businesses,” noting that it will be a major business for the firm.
As for growing the Vilebrequin business, the ceo explained to Wall Street that the company is embarking on a two-pronged strategy: significant expansion in the U.S. and through a stronger e-commerce presence, and through category expansion.
As for acquisitions, Goldfarb told analysts, “Our balance sheet can clearly support appropriate acquisitions and our management team is motivated to do more.”
The company said for the full year ending Jan. 31, it is now forecasting diluted EPS of between $2.71 and $2.81, or net income between $55.5 million and $57.6 million on sales of $1.39 billion. That’s compared with previous guidance of diluted EPS of between $2.68 and $2.78, or net income of between $55.2 million and $57.2 million on sales of $1.41 billion.