New York—Though Superstorm Sandy interrupted its shipments during peak delivery times, G-III Apparel Group reported today that its third quarter profit still rose 11% on higher sales and higher gross margins.
For the quarter ended Oct. 31, the apparel and accessories company reported net income of $48.3 million, or $2.37 a share, compared with $43.6 million, or $2.16 a share, in third quarter 2011. Excluding acquisition costs related to its purchase of Vilebrequin, earnings were $2.43 a share. That’s ahead of analysts’ average estimate for $2.35 a share.
Net revenue rose 6.6% to $543.5 million but missed analysts’ forecast for $572.2 million in sales.
“Even though the hurricane in New York caused an interruption of shipping during our peak days this quarter, we were still able to exceed our earnings targets as a result of realizing higher gross margins,” said Morris Goldfarb, chairman/ceo. “We are growing through improved penetration and door expansion. We are also excited to continue to reinforce our growth through acquisitions. Vilebrequin is an exceptional global status resort brand that we expect to grow beyond its leadership position in the status men’s swim and resort market into a true lifestyle brand.”
For its fiscal year ending Jan. 31, 2013, G-III forecast earnings between $2.82 to $2.92 a share, up from its previous estimate for $2.74 to $2.84 a share. Analysts’ consensus expects $2.85 a share.
As for its forecast revenue, G-III lowered its estimate to $1.39 billion from $1.41 billion. Analysts’ forecast is for $1.41 billion.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, beachwear and women’s suits, as well as handbags and luggage, under licensed brands, its own brands and private label brands.