G-III Apparel Q3 Profit Up 35%, Results Beat View; Lifts 2015 Outlook

(RTTNews) - Apparel maker G-III Apparel Group Ltd. (GIII) on Wednesday reported a 35 percent increase in profit for the third quarter from last year, reflecting double-digit sales growth aided by contribution from the acquired G.H. Bass business, in addition to a one-time gain.

Both adjusted earnings per share and quarterly sales topped analysts' expectations. Looking ahead, the company raised its financial outlook for fiscal 2015.

Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, "We are pleased to report a record third quarter. Our outerwear shipments were strong and that business performed well at retail. We experienced growth in several other areas of our business."

The New York-based maker of Andrew Marc, Marc New York and Jessica Howard brands reported net income for the third quarter of $80.62 million or $3.53 per share, up from $59.60 million or $2.85 per share in the prior-year quarter.

The latest quarter's results include other income of $0.44 per share that reflects sale of the right to operate Calvin Klein Performance stores in Asia, among others.

Excluding items, adjusted earnings for the quarter were $3.09 per share, compared to $2.88 per share in the year-ago period. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $2.89 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 21 percent to $812.33 million from $668.70 million in the same quarter last year, and includes $66 million of net sales contribution from the G.H. Bass business that was acquired in November 2013. Analysts had a consensus estimate of $802.31 million.

Operating profit for the quarter grew 15 percent to $113.28 million from $98.33 million in the year-ago quarter.

Meanwhile, selling, general and administrative expenses rose 41 percent from last year to $176.38 million.

Looking ahead to fiscal 2015, G-III Apparel raised it outlook for earnings to a range of $4.65 to $4.80 per share from the prior range of $4.00 to $4.15 per share. The company now projects adjusted earnings for the year between $4.20 and $4.35 per share, compared to $3.74 per share in the prior year.

In addition, the company raised its full-year outlook for net sales to about $2.13 billion from the prior forecast for net sales of about $2.11 billion.

Street is currently looking for earnings of $4.10 per share for the year on revenues of $2.11 billion.

Goldfarb added, "We are expecting a good holiday season for both our wholesale and retail businesses. Diversification across channels is supported by a strong brand portfolio that has resulted in our significant growth over the past several years."

GIII closed Tuesday's trading at $84.36, up $0.98 or 1.18 percent on a volume of 237,702 shares.