G-III Apparel Group soared in the second quarter, providing a little bit more good news for a rebounding fashion industry.
The company, which acquired Donna Karan in late 2016, topped its own expectations for the second quarter and boosted its outlook for the year, pushing the stock up 8.6 percent to $47.85 in pre-market trading Thursday.
G-III’s net income tallied $10.1 million, or 20 cents a share, marking a big swing from year-ago losses of $8.6 million, or 18 cents. Sales for the three months ended July 31 rose 16.1 percent to $624.7 million.
The firm had projected sales of $590 million with the bottom line ranging from earnings of $1.5 million to losses of $3.5 million.
“Our outperformance was driven by excellent results across our wholesale businesses,” said Morris Goldfarb, chairman and chief executive officer. “We are successfully leveraging our five global power brands to deliver market relevant product that resonates with today’s consumers. We have a world-class portfolio of owned and licensed brands that we believe position us for long-term growth in sales and earnings.”
G-III is now looking for annual sales of about $3.06 billion and net income of $125 million to $130 million. Previously, the firm tagged full-year results at sales of $2.97 billion and net income of $112 million to $117 million.