Shares of G-III Apparel Group jumped 15.2 percent, to 28 per cent for the quarter ended April 30, sales climbed 15.6 percent to $529.0 million.The net loss came to $10.4 million, or 21 cents per share, compared to net income of $2.8 million, or 6 cents, in the prior year’s comparable period. The latest quarter included $2.5 million, or 3 cents a share, in charges tied to professional fees, severance and one-time debt costs tied to its acquisition of Donna Karen International.
The clothing manufacturer and distributor swung to a loss of 18 per cent per share from a prior-year profit of 6 per cent a share, better than expectations for a 37-cent per-share loss. Revenue rose 16 per cent to $529 million as compared to forecasts for $500 million.
Excluding charges related to the acquisition of Donna Karan, the company had a loss of 18 cents a share, compared with a Fact set consensus for a loss per share of 40 cents. According to the company the Donna Karan business has reached an inflection point and is expected to turn profitable in the second half. Chief Executive Morris Goldfarb commented that the company is reducing operating costs in retail business, closing and repurposing stores and enhancing the store product offerings, overall helping the company and reducing the losses in the retail operations. The company stated it now expects full-year sales of about $2.76 billion and adjusted EPS of $1.20 to $1.30. The Fact Set consensus is for full-year EPS of $1.01 and sales of $2.72 billion. Shares have fallen 32 per cent in 2017 through Monday, while the S&P 500SPX, -0.28 per cent has gained 9 per cent.