NEW YORK — G-III Apparel Group Ltd. suffered losses for the second quarter and first six months because of slowing sales and charges stemming from the sale of its interest in a Chinese manufacturing facility.
For the three months ended July 31, the New York-based outerwear and sportswear manufacturer reported a loss of $1.7 million, or 23 cents a diluted share, compared with earnings of $2.7 million, or 37 cents, in the corresponding period a year ago. Sales slid 3.1 percent to $43.9 million from $45.3 million.
Weighing on results was a noncash charge of $882,000 related to the company’s decision to sell its 39 percent joint venture interest in a manufacturing facility in China. The charge translated into a hit of 12 cents a share for both the quarter and six months.
Morris Goldfarb, chief executive officer, said in a statement that the sale was “primarily due to current losses and the expectation of continuing losses for the foreseeable future.” He said that the company would continue to contract with the plant “as a key resource.”
For the six months, the loss was $6.5 million, or 91 cents a diluted share, compared with earnings of $91,000, or 1 cent, in the same period a year ago. Sales fell 5.6 percent to $60.4 million from $64 million.
Given the results for the first half, Goldfarb said that full year returns would underperform last year’s levels.