New York—G-III Apparel Group Ltd. today reported a second quarter profit more than double from last year as its sales of apparel and accessories grew at double-digit rates.
The results, which beat analysts’ estimates, cause the company to raise its full year sales and earnings forecast.
For the quarter ended July 31, the owner of Andrew Marc, Jessica Howard, Vilebrequin brands and a licensee for Calvin Klein and Kenneth Cole posted net income of $3.59 million, or 17 cents a share, compared with net income of $1.36 million, or 7 cents a share, a year ago.
Net sales grew 21% to $304.16 million. That topped analysts’ average estimate for earnings of 10 cents a share on sales of $287.9 million.
‘Strong Performance for Remainder of Year’
“We had an excellent second quarter. The results were driven by broad-based strength across many categories and brands in our portfolio,” said Morris Goldfarb, chairman/ceo. “We believe that we are executing particularly well in a number of key areas, including design and merchandising, which positions us to deliver strong performance for the remainder of the year.”
Gross margin widened to 32.7% from 29.8% last year. Selling, general and administrative expenses increased to $89.04 million from $69.45 million last year.
Goldfarb added that the company has “a powerful opportunity to continue to diversify our business, further penetrate key categories and layer on promising new organic growth initiatives, such as our multi-category launch of the Ivanka Trump collection and the rollout of full-priced Wilsons stores, which is still in a test mode. Our most recent acquisition, Vilebrequin, is performing well and provides us with a premier status brand in a new category.”
Although G-III’s third quarter forecast came in below analysts’ estimates, the company raised its full year forecast.
For the third quarter, G-III expects earnings of $2.52 to $2.62 a share, on projected sales of about $620 million. Analysts’ consensus expects earnings of $2.67 a share, on sales of $596.9 million.
And for its fiscal full year, G-III Apparel now forecasts earnings of $3.30 and $3.40 a share, up from a previous range of $3.20 and $3.30 a share. Net sales were forecast to hit $1.61 billion, up from a previous estimate of $1.57 billion.
Analysts’ forecast calls for full year earnings of $3.30 a share on sales of $1.57 billion.