Donna Karan’s corporate parent, G-III Apparel Group, posted top- and bottom-line gains in the first quarter.
Net income totaled $9.9 million, or 20 cents a share, compared with year-ago losses of $10.4 million, or 21 cents.
Sales for the three months ended April 30 increased 15.6 percent to $611.7 million from $529 million.
Morris Goldfarb, chairman and chief executive officer, said the year was off to a solid start.
“Strong brands, quality product, diversified distribution and great execution continue to be our winning formula,” he said. “We are excited to see the momentum continue and have increased confidence in our outlook for the remainder of this year. We believe our long-term growth opportunities have never been more compelling and we remain focused on capturing market share, driving growth, improving profitability and creating exceptional value for our shareholders.”
That optimism extended to the firm’s outlook.
G-III is now looking for sales this year of $2.97 billion, where previously it projected a top line of $2.94 billion. Profits expectations were also upgraded, to a range of $112 million to $117 million, up from $97 million to $102 million.
Investors approved and sent shares of the company up 13.7 percent to $48.76 in premarket trading.
G-III’s branded portfolio includes DKNY, Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard. The company also has a large business through licenses with other fashion brands, including Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess, Vince Camuto, Ivanka Trump, Kensie, Levi’s and Dockers.
On a conference call with analysts, Goldfarb added: “We know how critical is it for G-III to continue to be a supplier of choice that understands the marketplace, the trends, and the consumers’ shopping habits, regardless of where the transaction occurs, whether in the store or online. To that point, today we are a dominant resource to our retail partners in many major categories, in including outerwear, sportswear, dresses, suit separates, performance apparel, handbags and footwear in North America. We are also increasing our presence in important markets around the world.”
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