G-III Apparel (GIII) expected a rosier outlook for the full year earnings outlook after today's first quarter fiscal 2015 results reported a 34% increase in sales.
The company’s name probably doesn't ring the bell, but it’s the leading manufacturer in the country and you probably already wear some of their brands. G-III Apparel Group Ltd. manufactures and distributes a wide variety clothing, from swimwear to suits, footwear to luggage, including licensed clothing for many well-known fashion brands like Calvin Klein, Guess, Levis, Tommy Hilfiger, Mac & Jac's, Cole Haan, and many other. It’s also activein team sports, with licensing deals with the National Football League, the National Basketball Association, and the National Hockey League.
Today, the company released Q1 EPS report, indicating that for the fiscal year's first quarter, which ended April 30, 2014, the company ended up with a 34 percent increase in its year-over-year net sales from $272.6 million to $366.2 million, compared to the prior year's comparable period.
Of the $366.2 million net sales, $44.2 million was brought by G.H. Bass business that was acquired last November. G-III Apparel bought the shoemaker manufacturer from PVH Corp. (PVH) for $50 million. Morris Goldfarb, Chief Executive of G-III Apparel, said, "we are pleased with the progress we are making with respect to the integration of G.H. Bass into our operational platform."
"Our wholesale revenues were strong, exceeding our plan across a number of important categories," Goldfarb said.
The net income for this quarter has a jump to $1.29 million, or 6 cents per share, as compared to $1.12 million, or 5 cents a share the year-ago period. That was a 15 percent increase on the net income.
G-III released Q2 EPS guidance of 13-17 cents on sales of $392 million.
Analysts from Thomson Reuters expected earnings of 13 cents a share on revenue of $372 million.
For the full-year EPS outlook, the company changed to $4.05-$4.20 compared to the earlier forecast of $3.95-$4.10, on revenue of $2.05 billion. Analysts were expecting $4.09 on revenue of $2.05 billion.
With a 15 percent increase in profits and a 34 percent jump in sales, G-III Apparel has reason to anticipate higher earnings this year and revise to higher guidance. At least by now, based on the company’s performance and the current stock performance, its stockholders should be very happy.
