New York–G-III Apparel Group reported that its fourth quarter profits rose 36.9% on strong sales growth and predicted its fiscal 2011 would be strong as well.
“In the year ahead, we believe we can grow our existing businesses, supplement them with new category growth in handbags and luggage, expand our retail business to include the Vince Camuto outlet concept and continue to seek acquisition opportunities,” Morri Goldfarb, chairman and ceo, said Tuesday.
Net income rose to $12.3 million, or 62 cents per share, during the quarter that ended Jan. 31, up from $9 million, or 49 cents per share, during the same period last year. Revenue rose 39.4% to $270.2 million, from $193.8 million a year earlier. The figures easily beat analysts’ average estimates for a profit of 57 cents per share on revenue of $254.8 million.
Full Year Sales Surpass $1 billlion
For the fiscal year ended Jan 31, G-III reported that net sales increased by 32.8% to $1.06 billlion from $800.1 million last year. Net income per diluted share increased to $2.88 from $1.83 last year.
“We are very pleased to have delivered a record breaking performance this year, surpassing the $1 billion sales mark for the first time in our history,” Goldfarb added. “Our reputation as a strong partner and our growing portfolio of exceptional licensed and owned brands has enabled us to leverage our relationships to create and capitalize on new opportunities.” The company owns brands Andrew Marc, Marc New York and Marc Moto and makes apparel for Calvin Klein, Sean John, Kenneth Cole, Cole Haan, Guess?, Jones New York, Nine West, Tommy Hilfiger, Levi’s and other brands.
The company expects a fiscal 2011 profit of $64.5 million to $66.5 million, or $3.15 to $3.25 per share, and revenue of $1.2 billion. Analysts’ average estimates expect a profit of $3.25 per share on revenue of $1.19 billion.
For the quarter that ends April 30, G-III expects net income of $100,000 to $1 million, or break-even to 5 cents per share, on revenue of $195 million. Analysts expect a profit of 2 cents per share on revenue of $191.3 million.
G-III also issued guidance for the fiscal year 2012, forecasting net sales of approximately $1.2 billion and net income between $64.5 million and $66.5 million, from $56.7 million in fiscal 2011.