By  on December 7, 2011

G-III Apparel Group Ltd. inked a deal with PVH Corp. to open Calvin Klein Performance stores and shop-in-shops for women’s fashion in the U.S. and China.

The New York-based firm, which has held the wholesale license for women’s Calvin Klein Performance since 2007, also has the right to expand into additional countries throughout the world.

The stores will carry pants, capris, shorts, tank tops, T-shirts and hooded jackets.

“There is an excellent opportunity to leverage the power and recognition of the Calvin Klein brand to bring the performance line to a global audience of consumers,” said Morris Goldfarb, G-III chairman and chief executive officer.

G-III also reported that its third-quarter net income gained 1.9 percent to $43.6 million from $42.7 million—which equated to $2.16 a diluted share in both quarters. Gross margins shrank to 31.8 percent of sales from 34.2 percent a year earlier.

Sales for the three months ended Oct. 31 rose 13.3 percent to $510 million from $450 million.

But the company didn’t get to that sales gain by the way it had hoped.

“We achieved our sales objectives for the quarter, but found it necessary to utilize promotional strategies given the continued challenging market and weather conditions,” Goldfarb said. “In addition, we experienced higher product costs than last year. Our lower gross margin percentage in the third quarter reflected our higher costs and the promotional environment. We expect these trends to continue to impact us in the fourth quarter.”

G-III lowered its earnings guidance for the year to $2.50 to $2.60 a diluted share from the $3.05 to $3.15 previously anticipated.

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