G-III Apparel Group Ltd. posted robust sales and earnings for its first quarter, which prompted the company to raise its full-year sales and earnings guidance.
Sales are now pegged at $2.4 billion, which is up from prior guidance of $2.37 billion. Net income estimates for the year are now expected to be between $123 million and $128 million, which is up from the prior outlook of $116 million to $122 million.
For the first quarter, the company said sales and margins across its brands exceeded plans. As a result, sales jumped 18.3 percent to $433 million from $366 million in the same period last year while net income leapt to $6.8 million, or 15 cents a share, from $1.1 million, or 3 cents a share. The gross margin rate increased 13 basis points in the quarter, rising to 35.67 percent from 35.54 percent in the prior year.
Net income results for the quarter were better than Wall Street estimates.
“We designed and delivered compelling product and maintained good sell-throughs, in addition to building a strong order book for the upcoming fall season,” said Morris Goldfarb, chairman, chief executive officer and president, in the quarterly report. “Across our business, we met and exceeded plans for both sales and margins. Our performance included powerful organic growth across the full range of our wholesale businesses, led by Calvin Klein and dress businesses such as Eliza J and Vince Camuto.”
The ceo added that “momentum continued with respect to our turnaround and repositioning of the G.H. Bass business that we acquired in November 2013.”
Results for the quarter were released after the bell, and shares of the company finished the day up 3.3 percent. In after-market trading the stock gained another 4.3 percent to $62.70, which is above the company’s 52-week high.
For the second quarter, management expects sales to come in around $470 million, which compares to $424 million in the prior year. Net income is expected to be between $6.9 million and $9.3 million.
G-III sells and distributes women’s suits, dresses, swimwear, outerwear, sportswear and women’s performance wear. The company also sells footwear, accessories and handbags.
The company also sells resortwear and related accessories under its Vilebrequin brand. And its licensed goods include brands such as Calvin Klein, Dockers, Kenneth Cole, Levi’s, Cole Haan, Guess, Tommy Hilfiger, Jones New York, Jessica Simpson, Vince Camuto, Ivanka Trump and Ellen Tracy.