Shares of G-III Apparel Group Ltd. rose 13.3 percent earlier this week after the company posted double-digit percent gains in net income and sales for the third quarter.
This story first appeared in the December 6, 2013 issue of WWD. Subscribe Today.
The company said net income for the three months ended Oct. 31 rose 23.4 percent to $59.6 million, or $2.85 a diluted share, from $48.3 million, or $2.37, a year ago. Excluding one-time charges in both quarters, earnings were $2.88 a share versus $2.43 last year. Wall Street’s consensus estimate was $2.61. Net sales rose 23 percent to $668.7 million, compared with $543.5 million a year ago.
Morris Goldfarb, chief executive officer and president, told Wall Street analysts during a conference call, “We shipped extremely well this quarter, including outerwear, which is key to our third-quarter results. Our strength is evident across the board. Our designs are resonating, and our product lines have been well received. Our specialty retail operations are also performing at a high level.”
He also said of the company’s future: “First, we remain very much a growth company. We’re working to drive organic revenue growth and to add smart acquisitions that are accretive in the long term.
“Second, we’re focused on the principle of diversification. This has enabled us to generate strong results, maximize our opportunity, reduce our risk and broaden our potential.
“Third, we are going to continue to focus on building a great team, a strong group of partners and a powerful results-oriented culture.”
The company revised its full-year guidance for the period ending Jan. 31, to reflect strong third-quarter results and the expected results from G.H. Bass & Co. in the fourth fiscal quarter, which was acquired in the quarter just ended. G-III said it expects diluted earnings per share of $3.47 to $3.57, on a net income range of $72 million to $74 million and net sales of $1.73 billion. Prior guidance had diluted EPS between $3.30 and $3.40, on a net income range of $68.6 million to $70.6 million and net sales expected at $1.61 billion.