G-III Apparel stock soars after a big earnings beat, license deal to produce Champion outerwear

Shares of G-III Apparel Group Ltd. (GIII) shot up 14.8% toward a 13-month high in premarket trading Thursday, after the fashion apparel and accessories company, with brands including DKNY, Karl Lagerfeld and Wilsons Leather, reported a big fiscal second-quarter earnings beat. The company also announced a license agreement with Hanesbrands Inc. (HBI) to produce an outerwear collection for the Champion Brand. G-III reported net income for the quarter to July 31 that fell to $16.4 million, or 35 cents a share, from $36.3 million, or 74 cents a share, in the year-ago period. excluding nonrecurring items, adjusted earnings per share rose to 40 cents from 39 cents and came in well above the FactSet consensus of 1 cent. Sales grew 9.0% to $659.8 million to beat the FactSet consensus of $591.4 million. For fiscal 2024, the company now expects sales of $3.3 billion and EPS of between $3.05 and $3.15, compared with previous guidance for sales of $3.29 billion and EPS of between $2.65 and $2.75. G-III's stock has declined 5.1% over the past three months through Wednesday, while the S&P 500 has gained 4.6%.

-Tomi Kilgore

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09-07-23 0744ET

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