G-III Apparel Group, Ltd has announced operating results for the first quarter of fiscal 2017 that ended April 30, 2016. The brand’s net sales increased 6% to a first quarter record of $457.4 million, compared to $433 million in the year-ago period; however, net income for the first quarter was $2.8 million, or $0.06 per diluted share, compared to $6.8 million, or $0.15 per diluted share, in the prior year’s comparable period. The results were well above many experts’ estimates.
“Fiscal 2017 got off to a strong start in our wholesale business, particularly with respect to our Calvin Klein products and our dress businesses including Eliza J and the newly launched Tommy Hilfiger dress line,” said Morris Goldfarb, G-III’s chairman, CEO and president. “Although our own retail businesses did not perform to plan, we expect many of the measures we are taking to improve top and bottom line performance for these businesses in the second half of the year. We are looking forward to our upcoming multi-category product launches for Tommy Hilfiger, as well as further penetration and distribution of the Karl Lagerfeld brand.”
In addition, G-III reiterated its prior guidance for the full fiscal 2017 year ending January 31, 2017. The Company continues to expect net sales of approximately $2.56 billion and net income between $120 million and $125 million, or a range between $2.55 and $2.65 per diluted share.
“We believe that our leadership in product design, merchandising and sourcing will continue to drive our strong sell-through performance in department stores,” said Goldfarb. “In spite of the challenging retail climate, we are positioned well to continue to build our wholesale business, and remain confident with respect to our financial performance and forecast for the full year.”