G-III Apparel Q3 Profit Beats View, Lowers 2016 Outlook; Boosts Share Buyback

(RTTNews) - Apparel maker G-III Apparel Group Ltd. (GIII) reported an increase in profit for the third quarter from last year on double-digit sales growth. Adjusted earnings per share beat analysts' expectations, while revenues missed their estimates.

Looking ahead, the company lowered its earnings outlook for fiscal 2016 and said its board reapproved and increased the previously authorized share repurchase program to 5 million shares.

New York-based G-III Apparel's third-quarter net income rose to $87.16 million or $1.87 per share from $80.62 million or $1.76 per share last year.

Adjusted earnings for the quarter were $1.85, compared to $1.54 per share in the same period last year. On average, analysts polled by Thomson Reuters expected earnings of $1.78 per share for the quarter. Analysts' estimates typically exclude one-time items.

The company, which makes Andrew Marc, Marc New York, Jessica Howard brands, said its net sales for the quarter rose 12 percent to $909.87 million from $812.33 million a year ago. Analysts had a consensus revenue estimate of $912.87 million for the first quarter.

G-III said its board of directors had reapproved and increased the previously authorized share repurchase program. There were 3.75 million shares available under the prior program, which the board has now increased to 5 million shares.

Looking ahead to fiscal 2016, G-III now expects net income between $2.67 and $2.82 per share, down from the prior range of $2.78 to $2.88 per share. The company forecast adjusted earnings to increase by 17 percent to 24 percent to between $2.65 and $2.80 per share, compared to $2.26 per share for the 2015 fiscal year.

However, the company affirmed its outlook for full-year net sales of approximately $2.40 billion.

The Street currently expects earnings of $2.77 per share on revenues of $2.41 billion for the fiscal year 2016.