G-III Apparel Q1 Profit Rises - Update

(RTTNews) - Apparel maker G-III Apparel Group Ltd. (GIII) Tuesday reported an increase in profit for the first quarter, reflecting strong sales growth, with earnings and revenues trumping estimates. The company also lifted its forecast for the full-year 2016, sending its shares up about 7 percent in the after-hours trading.

New York-based G-III Apparel's first-quarter profit rose to $6.8 million or $0.15 per share from $1.3 million or $0.03 per share last year.

The company, which makes Andrew Marc, Marc New York, Jessica Howard brands, said its sales jumped 18 percent to $433.0 million from $366.2 million a year ago.

Analysts polled by Thomson Reuters expected earnings of $0.07 per share on revenue of $405.82 million for the first quarter. Analysts' estimates typically exclude one-time items.

CEO Morris Goldfarb said, "We are pleased to continue to report improved results while also delivering value to our shareholders. We are continuing to demonstrate our ability to simultaneously drive organic sales growth, further diversify our business, and enhance our profitability."

Looking forward to the second quarter, the company expects earnings of $0.15 to $0.20 per share and sales of about $470.0 million. Analysts currently expect earnings of $0.18 per share on revenues of $468.22 million for the quarter.

For the full year, the company expects earnings of $2.66 to $2.76 per share on sales of about $2.40 billion, up from prior outlook of earnings of $2.53 to $2.63 per share and sales of about $2.37 billion. Analysts currently expect earnings of $2.62 per share on revenues of $2.37 billion for the fiscal year 2016.

GIII closed Tuesday's trading at $60.09, up $1.92 or 3.30%, on the Nasdaq. The stock further gained $4.25 or 7.07% in the after-hours trade.