G-III Apparel Group posted third-quarter gains, but took a stock beating as it trimmed its outlook for the year.
Shares of the company fell 8.1 percent to $26.20 in the opening minutes of trading as investors digested the numbers.
Third-quarter net profits inched up to $95.4 million, or $1.97 a diluted share, from $94 million, or $1.86, a year earlier. Adjusted earnings of $1.99 a share came in 5 cents ahead of the $1.94 analysts projected.
Sales for the three months ended Oct. 31 rose 5.2 percent to $1.13 billion from $1.07 billion, but still lagged the $1.17 billion Wall Street had penciled in. The company — which owns DKNY and Donna Karan and produces Calvin Klein and Tommy Hilfiger goods under a license for PVH Corp. — saw its wholesale sales rise 6.2 percent to $1.07 billion in the quarter.
Morris Goldfarb, chairman and chief executive officer, said: “We maintained good momentum in our wholesale business, in spite of the challenging retail and macro environment. Our merchants did a good job managing product costs, as we benefited from accelerated inventory receipts and support from our Chinese vendor base to mitigate some of the impact of the tariffs that were imposed.”
Despite the quarter’s gains, G-III cut its outlook for the year, shaving $100 million of its sales forecast, which now calls for a top line of $3.2 billion.
And the firm’s adjusted earnings per share forecast was cut to a range of $3.06 to $3.16, down from $3.15 to $3.25 seen in September.