Why This Stock May Be Worth Watching? - G-III Apparel (GIII)

(RTTNews) - Strong brands, better-than-expected quarterly results, and upbeat FY18 outlook make this stock a near-term must-watch. G-III Apparel Group Ltd. (GIII), which owns private label brands including Donna Karan, Tommy Hilfiger and Calvin Klein, defied the loss estimates modeled by Wall Street analysts and raised expectations for the full year.

Q1 results

*Net sales rose 16% to a first quarter record of $611.7 million from $529.0 million last year.

*Net income rose to $9.9 million, or $0.20 per share, vs. year-ago net loss of $10.4 million, or $0.21 per share. Excluding items, the company earned 22 cents per share.

*Both Bottom-line and Top-line numbers crushed estimates for a loss of 6 cents per share and revenues of $567.4 million.

FY19 Outlook

The company raised FY19

*net sales expectations to $2.97 billion from $2.94 billion. Consensus - $2.97 billion.

*adjusted net income expectations to $2.27 to $2.37 per share from $1.98 to $2.08 per share. Consensus - $2.06.

CEO comment

Morris Goldfarb, G-III's Chairman and Chief Executive Officer, said, "We are pleased to have begun the year with a solid quarter across the board. We are excited to see the momentum continue and have increased confidence in our outlook for the remainder of this year."