G-III Q4 Profit Surges 62% on Record Sales

In What's New, Industry News by Jeff Prine

G-III's recent acquisition, G.H. Bass, helped its fourth quarter bottom line

G-III’s recent acquisition, G.H. Bass, helped its fourth quarter bottom line

New York—G-III Apparel Group Ltd. today reported Tuesday a fourth quarter profit that surged up 62% reflecting “broad strength across categories and tiers of distribution.

For the quarter ended Jan. 31, the parent to Andrew Marc, Kensie, G.H. Bass, Vilebrequin etc. posted net income of $13.06 million or 62 cents a share, per share, compared with $8.07 million, or 40 cents a share, in the prior-year quarter. The result easily beat analysts’ average estimate for 49 cents a share.

Net sales increased 26% to a record $472.8 million, but missed analysts’ estimate for $489.93 million in sales.

But Forecast Disappoints

Operating profit for the quarter grew to $22.19 million from $16.07 million a year-ago and gross profit hit $166.52 million, up from $117.90 million a year earlier. Meanwhile, selling, general and administrative expenses increased to $140.18 million from $98.89 million last year.

“Fiscal 2014 was an excellent year. We continued to grow at a fast pace, executed our strategic plan for Vilebrequin, acquired G.H. Bass & Co. and produced both strong sales growth and increased profitability,” noted Morris Goldfarb, chairman/ceo/president. “We are pleased to have performed well throughout the year and finished up fiscal 2014 with record breaking results for sales and earnings.”

But G-III’s forecast disappointed analysts. For its first quarter, the company expects a loss of 10 cents to 20 cents a share on sales of about $346 million. (With a negative impact due to the G.H. Bass acquisition). Analysts’ consensus expects earnings of 4 cents a share on $345.6 million in sales.

Looking ahead to its full fiscal year, G-III forecast earnings in the range of $3.95 to $4.10 a share with sales estimated at $2.05 billion. Analysts forecast full year earnings of $4.30 a share on sales of $2.10 billion.

“We continue to create a variety of significant growth opportunities as we build our operating platforms,” Goldfarb said. “We believe that this systematic approach to growth and diversification, combined with cost discipline, positions us to continue our strategic expansion, organically and through acquisition, and drives excellent value to our shareholders.”


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