G-III reports Q3 sales jump, raises guidance
Following a strong second quarter, New York-based G-III Apparel Group announced on Thursday another sales gain for its third quarter, with net sales hitting $1.07 billion, up 4.7 percent, compared to $1.02 billion reported in the prior year period.
The company behind DKNY, Donna Karan, Vilebrequin and G.H. Bass, saw net income for the third quarter of $94 million, or $1.86 per diluted share, up from $81.6 million, or $1.65 per diluted share, in the prior year’s comparable period.
Chairman and CEO Morris Goldfarb attributed the jump to a solid performance from its wholesale business.
“In our largest shopping quarter, the continued momentum in our wholesale business enabled us to surpass our third quarter earnings guidance. We again demonstrated great ability to successfully leverage our five global power brands. Our products are set-up well across our channels of distribution for the important holiday season and we believe we will have a strong finish to the year,” Goldfarb said, in a news statement
The group’s sales have flourished since acquiring the DKNY and Donna Karan brands from LVMH in 2016.
Most recently, earlier this month, DKNY also entered into a multi-year licensing agreement with The Swarovski Group to introduce a new international jewelry offering. The collection will be unveiled in March of 2019 and launched the following September.
As a result of the strong momentum during the quarter, G-III is raising its guidance for the full fiscal year ending January 31, 2019. The company now expects net sales of approximately $3.08 billion and net income between $132 million and $137 million, or between $2.59 and $2.69 per diluted share.
That’s compared to previously forecasted net sales of approximately $3.06 billion and net income between $125 million and $130 million, or between $2.45 and $2.55 per diluted share, for fiscal 2019.
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