G-III Apparel Group picked up some extra momentum heading into the holiday season.
Donna Karan’s corporate parent posted profit gains and boosted its outlook, leading investors to push the stock up 5 percent to $31.64 in premarket trading Tuesday.
The company’s third-quarter net profits rose to $81.6 million, or $1.65 a diluted share, from $70.6 million, or $1.50, a year earlier. Adjusted earnings of $1.67 a share easily topped the $1.54 analysts projected.
Sales for the three months ended Oct. 31 increased 16 percent to $1.02 billion from $883.5 million as the Donna Karan and DKNY businesses added sales of $88 million; the businesses were acquired just over a year ago.
Donna Karan the designer is no longer attached with the brand, but stirred up some trouble for G-III in October in unscripted comments that wondered aloud if the women accusing Harvey Weinstein of sexual misconduct weren’t “asking for it.”
Karan, who said she was speaking with incomplete information and on little sleep, apologized repeatedly, but that didn’t stop some people from trying to spur on a boycott of the brand she founded.
G-III, in its release on third-quarter results, did not address any commercial impact from Karan’s comments, but focused on its broader business, which seems to be preforming well.
The results surpassed the company’s internal plans and chairman and chief executive officer Morris Goldfarb said, “Our products are selling well as we head into the holiday season and we expect to close the year with improved results and sustained momentum.”
Goldfarb said the company’s growth strategy works and that G-III owns known brands and controls distribution.
In addition to Donna Karan, the company owns Vilebrequin, G. H. Bass, Andrew Marc, Marc New York, Eliza J and Jessica Howard. It also makes licensed goods under Calvin Klein, Tommy Hilfiger, Guess, Vince Camuto, Ivanka Trump and more.
For the full year, the company still expects to post sales of $2.8 billion, but is now looking for earnings between $66 million and $71 million, above the $56 million to $60 million previously projected.