Sales, Profits Expand at G-III

The firm saw full-year sales surpass $1 billion for the first time in 2010.

G-III Apparel Group Ltd. Tuesday posted double-digit spikes in sales and profits for the fourth quarter and full year.


For the three months ended Jan. 31, income increased 36.9 percent to $12.3 million, or 62 cents a diluted share, from $9 million, or 49 cents, in the fourth quarter of 2009. Excluding the effects of a one-tax item in the year-ago period, earnings per share were 62 cents versus 40 cents last year. Sales also jumped 39.4 percent to $270.2 million from $193.8 million.


On average, analysts expected EPS of 57 cents on sales of $256.5 million.


Morris Goldfarb, chairman and chief executive officer, said, “Our businesses are operating well and achieving growth despite a highly competitive and complex environment, which we believe to be indicative of our superior operating capabilities.”


He added that for 2011, the company believes it can “grow our existing businesses, supplement them with new category growth in handbags and luggage, expand our retail business to include the Vince Camuto outlet concept and continue to seek acquisition opportunities.”


G-III and The Camuto Group announced plans for a joint retail venture in September.


For the year, the company saw profits spike 78.7 percent to $56.7 million, or $2.88 a diluted share, from $31.7 million, or $1.83, in 2009. Exceeding the $1 billion plateau for the first time, revenues were up 32.8 percent to $1.06 billion from $800.9 million in 2009.


In first-quarter guidance, G-III projected EPS of between zero cents and 5 cents on income of between $100,000 and $1 million and sales of $195 million. That compares with a loss of $1.4 million, or 7 cents, in the first quarter of fiscal year 2010. For the full fiscal year, the company expects diluted EPS of between $3.15 and $3.25 on sales of $1.2 billion.