G-III Apparel rising on strong 1Q results, boosted outlook
NEW YORK (AP) — Shares of G-III Apparel Group Ltd. are surging in Wednesday premarket trading following a strong quarterly performance and raised full-year forecast on strong sales of Calvin Klein and other brands.
The clothing and accessories maker reported fiscal first-quarter earnings of 15 cents per share on revenue of $433 million. Analysts polled by Zacks investment Research expected earnings of 7 cents per share on revenue of $404.7 million.
Jim Duffy of Stifel Nicolaus said in a client note that better-than-expected revenue from the wholesale unit helped G-III’s performance. Duffy said the wholesale segment was led by strength in Calvin Klein as well as dresses across various brands.
KeyBanc Capital Markets’ Edward Yruma believes that the repositioning of G.H. Bass, which includes merchandise improvements, will help bolster the retail segment’s performance. G-III acquired G.H. Bass in November 2013.
For fiscal 2016, G-III anticipates earnings in a range of $2.66 to $2.76 per share on revenue of $2.4 billion. Its prior outlook was for earnings of $2.53 to $2.63 per share on revenue of about $2.37 billion.
Analysts surveyed by FactSet predict earnings of $2.64 per share on revenue of $2.37 billion.
The New York company’s stock gained $4.92, or 8.2 per share, to $65.01 before the market open.