New York—Shares of G-III Apparel, producer of licensed apparel and accessories for brands such as Calvin Klein, Tommy Hilfiger and Guess?, surged up about 18% in trading today after the company reported Monday afternoon that it swung into a first quarter profit.
For the quarter ended April 30, the apparel and accessories supplier posted a profit of $1.1 million, or 5 cents a share, compared to a loss of $847,000, or 4 cents a share, a year ago.
Net revenue jumped 19% to $272.6 million ahead of the company’s own April forecast for $270 million in sales. Gross margin rose to 33.9% from 29.9% a year ago.
“Our increase in first quarter revenue was driven by a variety of businesses and by the inclusion of sales from Vilebrequin which was acquired in August 2012,” said Morris Goldfarb, chairman/ceo.“We saw a strong performance across a broad range of categories, particularly with respect to a number of our Calvin Klein products, and from our growing retail operations which produced double-digit comparable store sales increases in the quarter.”
The strong first quarter results lead the company to raise its current and full year earnings forecasts.
For the current quarter, G-III forecast per share earnings of 6 cents to 10 cents on revenue of $287 million. Analysts’ average estimate expects 13 cents on sales of $283 million.
For its fiscal year, G-III raised forecast to $3.20 and $3.30 a share in earnings on sales of $1.57 billion. That’s up fro its previous estimate for a profit of $3.10 to $3.20 a share on sales of $1.55 billion.
Added Goldfarb: “As the year progresses, we expect to continue to increase penetration with respect to several of our important categories, including women’s sportswear, dresses, suits and handbags.”