WWD.com/business-news/financial/g-iii-q4-income-soars-on-strong-demand-6879096/
government-trade
government-trade

G-III Q4 Income Soars on Strong Demand

The vendor issued annual guidance above Wall Street's estimates.

G-III Apparel Group Ltd. posted a 57.3 percent gain in fourth-quarter earnings Tuesday, helped by robust sales across a plethora of its apparel, outerwear and accessories brands.

As a result, the New York-based vendor issued annual guidance that exceeded Wall Street’s estimates.

For the three months ended Jan. 31, G-III’s net income totaled $7.9 million, or 40 cents a diluted share, compared with income of $5 million, or 25 cents a share, in the year-ago period. Excluding expenses related to the company’s acquisition of men’s swimwear brand Vilebrequin, the firm said EPS amounted to 41 cents, which was a penny better than analysts’ estimates.

Net sales for the quarter expanded 27.5 percent to $375.3 million, or $294.3 million. Analysts predicted sales of $360.2 million.

RELATED CONTENT: WWD Earnings Tracker >>

G-III, which owns licenses such as Calvin Klein, Sean John, Tommy Hilfiger and Nine West, said its quarterly gross margin improved to 31.4 percent of sales from a margin of 28.3 percent a year earlier.

“We continue to see strength in many areas of our business, including sportswear, dresses, suits, team sports and handbags, as well as our Wilsons Leather stores,” said Morris Goldfarb, G-III’s chairman and chief executive officer. “We are presently executing on our long-term Vilebrequin strategic plan. We have made significant investments in this business and will continue to do so over the next several years. I am extremely confident in Vilebrequin’s prospects.”

Goldfarb said the company anticipates annual net income of between $64.3 million and $66.4 million, or EPS of between $3.10 and $3.20, on sales of $1.55 billion.

Wall Street is looking for EPS of $2.92 on sales of $1.38 billion for the year.