New York—G-III Apparel Group reported today that its fourth quarter profit jumped 58% and an 8.8% rise in sales. While the profit beat forecasts, revenue missed.
For the three months ended Jan. 31, G-III posted a net profit of $22.22 million, or 96 a share, compared with $13.06 million, or 62 cents a share for the same period last year. On an adjusted basis, earnings per share were at 98 cents ahead of forecasts for 83 cents a share.
G.H. Bass Licensed to Genesco
Revenue grew 8.79% to $514.32 million from $472.76 million in the previous year period, missing estimates for $528.3 million in sales. The company said increases in both wholesale and retail fueled the rise.
Gross margin expanded 52 basis points over the previous year period to 35.68%. Total expenses were 92.94% of quarterly revenues, down from 95.38% for the same period last year. This has led to an improvement of 244 basis points in operating margin to 7.06%
G-III’s Q1 outlook was mixed. The company forecast first quarter earnings to 5 to 15 cents a share on revenue of $406 million vs. views for 14 cents on revenue of $404.8 million.
For its 2016 outlook, G-III estimated $5.05-$5.25 in per-share earnings, the midpoint of which falls a penny below expectations for $5.16 a share, while revenue guidance for $2.37 billion is ahead of analysts’ views for $2.34 billion in sales.
On Monday, G-III announced that it had formed a wholesale licensing agreement for Genesco to design, distribute and market G.H. Bass footwear in the U.S. and Canada. G-III acquired G.H. Bass in late 2013.
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