G-III Apparel Q3 Profit Rises, Sees FY14 Earnings Above View - Update

(RTTNews) - Apparel maker G-III Apparel Group Ltd. (GIII) Wednesday reported a higher third-quarter profit, as net sales climbed 23 percent from last year. The company lifted its earnings and revenue outlook for fiscal 2014 once again, to reflect its strong third-quarter financial performance and expected results from G.H. Bass & Co. in the fourth fiscal quarter.

The firm also forecast fiscal non-GAAP earnings per share above Wall Street Analysts' estimates. In pre-market trading, the shares are currently up about 10 percent.

For the third quarter ended October 31, G-III posted net income attributable to the company of $59.60 million or $2.85 per share, higher than $48.29 million or $2.37 per share in the previous year.

On an adjusted basis, earnings were $2.88 per share for the recent quarter, while the company posted $2.43 per share in the prior year.

On average, nine analysts polled by Thomson Reuters expected the company to earn $2.61 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted earnings for the third quarter of 2013 excluded expenses associated with the company's acquisition of G.H. Bass & Co. and other potential transactions. The firm noted that G.H. Bass & Co., is an iconic brand with great potential and the business should integrate well into its existing retail platform.

The New York-based maker of Andrew Marc, Marc New York, Jessica Howard brands said its quarterly net sales climbed 23 percent to $668.70 million from $543.51 million in the year-ago quarter. Seven analysts estimated revenues of $629.28 million for the quarter.

Morris Goldfarb, chairman, chief executive officer and president stated, "We are pleased to report excellent results in our key third quarter season driven by across-the-board strength in our business. In our wholesale business, great product design, compelling price and value, and a portfolio of strong brands drove our business to record levels of both net sales and net income per share."

For fiscal 2014, the company now expects net income to be in the range of $72 million to $74 million, or $3.47 to $3.57 per share, up from the prior guidance of net income of $68.6 million to $70.6 million, or $3.30 to $3.40 per share.

The company forecasts non-GAAP net income per share for the fiscal 2014 to be in the range of $3.50 to $3.60.

Net sales are expected to be about $1.73 billion, compared to its earlier outlook of $1.61 billion.

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

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.

GIII closed Tuesday's regular trading session at $58.29, up 1.39 percent. In the pre-market activity, the shares are up 9.57 percent.