G-III Apparel Q3 Profit Rises, Results Top Estimates; Lifts FY Outlook

(RTTNews) - Apparel maker G-III Apparel Group Ltd. (GIII) reported that its third-quarter net income attributable to the company increased to $59.6 million, or $2.85 per share, from $48.3 million, or $2.37 per share, in the prior year's comparable period. Analysts polled by Thomson Reuters expected the company to report earnings of $2.61 per share for the quarter. Analysts' estimates typically exclude special items.

On an adjusted basis, excluding expenses in the quarter ended October 31, 2013 associated with the Company's acquisition of G.H. Bass & Co. and other potential transactions and in the quarter ended October 31, 2012 associated with the acquisition of Vilebrequin, Non-GAAP net income per share for the third quarter increased 19% to $2.88 compared to $2.43 in the prior year's third quarter.

Quarterly net sales increased by 23% to $668.7 million from $543.5 million in the year-ago period. Seven analysts estimated revenues of $629.28 million for the quarter.

The company revised its prior guidance for the full fiscal 2014 year ending January 31, 2014 to reflect its strong third quarter financial performance and the expected results from G.H. Bass & Co. in the fourth fiscal quarter.

The company now expects net sales of approximately $1.73 billion compared to its previous guidance of $1.61 billion. It now expects net income in the range of $72.0 million to $74.0 million, or $3.47 to $3.57 per share, compared to its previous guidance of net income between $68.6 million and $70.6 million, or a range between $3.30 and $3.40 per share.

The revised upward guidance for fiscal 2014 includes the expenses associated with the acquisition of G.H. Bass and other potential transactions incurred through October 31, 2013.

The company's full year guidance of $3.47 to $3.57 per share includes a projected net loss of $0.10 to $0.15 per share in the fourth quarter in connection with the operations of its newly acquired G.H. Bass & Co. business. The full year estimates exclude the impact of any purchase price accounting adjustments relating to the acquisition of G.H. Bass.

The company forecasts Non-GAAP net income per share for the full 2014 fiscal year to be in the range of $3.50 to $3.60 compared to $2.92 for the 2013 fiscal year.

Analysts expect the company to report earnings of $3.29 per share and revenues of $1.68 billion for the fiscal 2014.