Shares of G-III Apparel Group Ltd. fell 7 percent in after-market trading Thursday following the company’s posting of third-quarter results that missed Wall Street’s consensus estimates.

For the three months ended Oct. 31, net income fell 19 percent to $70.6 million, or $1.50 a diluted share, from net income of $87.2 million, or $1.87, a year ago. Net sales slipped 2.9 percent to $883.5 million from $909.9 million.

Wall Street was expecting earnings per share of $1.54 on revenues of $937.6 million.

For the nine months, net income dropped 32.3 percent to $72 million, or $1.53 a diluted share, on a 1.8 percent decrease in net sales of $1.78 billion.

Morris Goldfarb, G-III’s chairman and chief executive officer, said, “We have systematically, steadily and thoughtfully diversified into a wide range of categories, both organically and through strategic acquisitions….We believe that our premium brands, including those that come with our acquisition today of the Donna Karan business, position us extremely well to drive sales and profit growth well into the future. We see a multi-billion dollar revenue growth opportunity for our company over time.”

The company revised prior guidance for the full fiscal year ending Jan. 31, now forecasting net sales of $2.43 billion and net income between $67 million and $72 million. Diluted EPS is estimated at between $1.41 and $1.51. The revision includes some costs in connection with its Donna Karan acquisition, which the company closed on Thursday.

On an adjusted basis, diluted EPS is forecast in the range of $1.86 to $1.96. That compares with the prior guidance of $2.16 to $2.26 in August when the company reported second quarter results. In comparison, diluted EPS was $2.46 for the year ended Jan. 31, 2016.

Goldfarb during a conference call with Wall Street analysts, said, “The strongest part of our business continues to be in non-outerwear wholesale.”

The ceo noted that the wholesale outerwear category was impacted in the quarter by the warmer weather so far this season. He also told analysts that the company is planning to reduce its outerwear business over the next few years to minimize exposure to unseasonable warm weather conditions. While some of that will come from an adjustment of product mix, it could also include a repurposing of some stores. The company is working with landlords to improve our lease portfolio, Goldfarb said. Some stores might be converted for its newest acquisition, the Donna Karan brand. G-III operates retail stores under the Wilson’s Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance nameplates.

As for the acquisition of Donna Karan, Goldfarb said retail partners are looking for new products, and while its licensed brands such as Calvin Klein and Karl Lagerfeld meet that demand, the Donna Karan brand “deepens our ability” to meet that demand. He said DKNY in general could be a $1 billion business in North America, with additional volume overseas. It can be a cornerstone brand for Macy’s, Dillard’s, Nordstrom and Bloomingdale’s, Goldfarb added.

The ceo said the first order of business with DKI is building a comprehensive selection of product. “Cementing our strategy, that first leg of growth will be led by classifications we know best: Dresses, suit separates, sportswear, coats, performance and shoes,” Goldfarb said. Work on the introduction of performance and dress products should be available in existing DKNY stores this coming summer, the ceo noted.

And while DKNY has an excellent group of licensees, Goldfarb said his company has identified some untapped categories where there can be demand for the brand.

He also said that the company in general, over time, could see licensing revenues grow to between $75 million to $100 million annually.

Shares of G-III closed down 1 percent to $26.88. In aftermarket trading, shares were in the $25 range at 4:59 p.m. The company reported third quarter results after the equity markets closed their respective trading sessions.