The company’s second-quarter sales rose 21 percent to $538 million, including $45 million in net sales from DKNY and Donna Karan. The second quarter of 2016 did not include any sales from DKNY or Donna Karan, which were acquired in a $650 million deal in December.
However, G-III still tallied a net loss of $8.6 million, up from losses $1.3 million a year ago.
Shares of G-III rose 5.3 percent to $29.02 in the first minutes of trading, an eight-month high.
Morris Goldfarb, G-III’s chairman and chief executive officer, said the addition of the Donna Karan brands has given the company a “powerful” group of global brands.
“This great portfolio is enabling us to perform well despite significant headwinds in the marketplace,” Goldfarb said. “We are positioned to provide exciting new assortments to a range of retailers and to demonstrate leadership in our industry at a critical time. We expect to generate growth in sales and achieve higher levels of profitability as we move forward.”
G-III also operates Karl Lagerfeld Paris, Andrew Marc Bass footwear, Vilebrequin swimwear, Wilson’s Leather and also has licenses for the PVH-owned Calvin Klein and Tommy Hilfiger brands.
Goldfarb said the company is still going through a process of “store rationalization,” which began last year with the closure of 60 retail locations. During the first quarter, G-III also began the process of closing another 69 Wilson and Bass stores and another 45 locations are set to close by 2018.
“We can mitigate the pressure on our retail results while reaping the benefits of an exciting new phase of wholesale growth as we look forward to a successful second half of the year,” he said.
Given the results of the Donna Karan brands, G-III upped its full-year guidance. It now expects revenue of about $2.8 billion and net income of up to $60 million. The company had projected net sales around $2.7 billion and net income topping out at $57 million.