G-III Apparel Group Ltd. has cut its full-year earnings forecast in the wake of more tariffs.

Morris Goldfarb, G-III’s chairman and chief executive officer, told investors that while the group had managed to mitigate some of the tariff headwinds thanks in part to its diverse supply chain, yet more levies over the weekend pushed the company to be more conservative.

“Based on the additional tariffs that were just implemented, we feel it is prudent to revise our guidance to a more conservative posture for the remainder of this fiscal year,” he said.

For fiscal 2020, G-III is now forecasting net income between $154 million and $159 million, or between $3.10 and $3.20 a diluted share. This compares to its previous expectation of between $163 million and $168 million, or between $3.19 and $3.29 a diluted share.

Net sales are penciled to come in a fraction higher at $3.3 billion, from its last forecast of $3.28 billion.

On Sunday, the Trump administration slapped 15 percent levies on a hefty amount of apparel and footwear as the trade war with China continues to escalate. The former will be most impacted, with more than 90 percent of apparel imported to the U.S. from China set to be subject to the new levies. The remaining items will be hit with tariffs in mid-December. China and the U.S. on Wednesday revealed plans to meet in October to renew talks aimed at settling their ongoing trade dispute.

For the second quarter ended July 31, G-III’s net sales increased 3.1 percent to $643.9 million, from $624.7 million in the same period last year. Analysts polled by Zacks had forecast $655.5 million.

Net income came in at $11.1 million, or 23 cents a share, up from $10 million, or 20 cents a share, a year earlier. Analysts had penciled in 22 cents a share.

The company recently acquired the license to design, produce and distribute Calvin Klein’s women’s jeans for an initial term of five years. This business joins the other women’s Calvin Klein businesses that are already licensed to G-III by Calvin Klein Inc., including women’s ready-to-wear and accessories. G-III also owns DKNY and produces Tommy Hilfiger and Karl Lagerfeld under license.

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