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G-III Apparel blows past earnings estimates and raises guidance

G-III Apparel Group Ltd. shares (GIII) rose 1.6% in premarket trade Thursday, after the parent of brands including DKNY, Calvin Klein and Tommy Hilfiger blew past estimates for its fiscal second quarter. The company swung to a profit of $19.2 million, or 39 cents a share, in the quarter to July 31, after a loss of $14.9 million, or 31 cents a share, in the year-earlier period. Sales rose to $483.1 million from $297.2 million a year ago. The FactSet consensus was for EPS of 10 cents and sales of $467.0 million. Chief Executive Morris Goldfarb said the company is "encouraged" by strong consumer demand for apparel and accessories, as it raised its guidance, while acknowledging the uncertainty being created by the pandemic and supply-chain issues creating higher shipping costs and delays. It now expects sales of about $2.7 billion for fiscal 2022 and for net income of $3.10 to $3.20 a share. That compares with a prior forecast of sales of about $2.57 billion and EPS of $2.60 to $2.70. For its fiscal third quarter, it expects sales of about $1.00 billion and EPS of $1.65 to $1.75. Shares have gained 37% in the year to date, outperforming the S&P 500's 20% gain.

-Ciara Linnane


(END) Dow Jones Newswires

09-02-21 0752ET

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