Shares of G-III Apparel Group Ltd. rose more than 7 percent late Monday after the New York-based sportswear firm surprised analysts with a first-quarter profit and lifted guidance for the year.
With gross margin up 400 basis points and same-store sales rising at a double-digit clip, the company registered net income of $1 million, or 5 cents a diluted share, in the three months ended April 30. This came against a loss of $847,000, or 4 cents, in the year-ago period and the analysts’ consensus estimate for a loss of 5 cents for the just-completed period. All eight analysts weighing in on G-III’s results expected a loss.
Aided by the addition of Vilebrequin last August and strong performance from its extensive portfolio of Calvin Klein licenses, sales rose 18.8 percent to $272.6 million from $229.4 million in the year-ago quarter. The consensus was for sales of $267.8 million.
The strong showing prompted G-III to raise guidance for the year. It now expects earnings per share of between $3.20 and $3.30, versus its earlier expectation of between $3.10 and $3.20, and sales of about $1.57 billion, up from previous guidance of $1.55 billion.
Shares closed Monday up 63 cents, or 1.5 percent, at $42.74 but rose $3.05, or 7.1 percent, to $45.79 immediately following the 4 p.m. disclosure of first-quarter results.
“We saw a strong performance across a broad range of categories, particularly with respect to a number of our Calvin Klein products, and from our growing retail operations, which produced double-digit comparable-store sales increases in the quarter,” said Morris Goldfarb, chairman and chief executive officer. “Current booking activity and sell-through rates, as well as positive feedback from our retail customers on our upcoming merchandise programs, give us increased confidence in our full-year outlook.”
Goldfarb cited strength in women’s sportswear, dresses, suits and handbags and said the company was on target for upcoming launches of its Ivanka Trump collection, Calvin Klein men’s and women’s swimwear and women’s swimwear under the Vilebrequin brand.
“Our strategic and diversified approach to growth encompasses multiple brands, both genders and several tiers of retail distribution,” he added.
On a conference call with analysts, Goldfarb noted, “This is the first time in at least 15 years that we have had a profitable first quarter,” pointing to strong outerwear sales because of the cool weather during the quarter and gross margin improvement in “our non-outerwear wholesale business and our Wilsons retail operations.” Same-store sales at Wilsons were up 12.4 percent on top of a 6 percent increase in the first quarter of last year, Goldfarb said.
G-III also operates stores under the banners of Vilebrequin, Andrew Marc and Calvin Klein Performance.
Overall gross margin advanced to 33.9 percent of sales from 29.9 percent a year ago.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast