NEW YORK (AP) -- G-III Apparel Group Ltd. said Thursday that its fiscal fourth-quarter profit slid 59 percent, hurt by the milder winter weather and higher expenses. Its first-quarter revenue outlook and fiscal 2013 guidance came in below Wall Street's expectations.
"Although we achieved record sales in fiscal 2012, the record breaking warm weather was a major factor in our disappointing fourth quarter performance," Chairman and CEO Morris Goldfarb said in a statement.
The company makes clothes and luggage under Calvin Klein, Sean John, Kenneth Cole and other brands. Sales of its coats and winter outerware were hurt at many retail outlets due to the unseasonable weather across much of the U.S.
"Having managed through fiscal 2012 gives us comfort for a more successful fiscal 2013," Goldfarb said.
In a separate announcement, it said it is forming a joint venture with retail and manufacturing company China Ting Group Holdings Ltd. to open and run Calvin Klein Performance stores in China and Hong Kong. G-III will have 51 percent ownership of the joint venture. Stores are expected to start opening in major Chinese markets beginning in the fall.
G-III shares rose $1.51, or 5.7 percent, to $28.12 in morning trading Thursday. Its shares are still near then lower end of their 52-week range of $17.31 to $45.38.
In its earnings report, the company said its net income fell to $5 million, or 25 cents per share, for the three months ended Jan. 31. That's down from $12.3 million, or 62 cents per share, a year earlier.
The performance missed the 27 cents per share that analysts surveyed by FactSet had expected.
Revenue rose 9 percent to $294.3 million from $270.2 million, but fell short of analysts' estimate of $310.8 million.
Quarterly selling, general and administrative expenses increased to $72.3 million from $64.7 million.
Full-year earnings dropped 13 percent to $49.6 million, or $2.46 per share, from $56.7 million, or $2.88 per share, in the prior year. Annual revenue climbed 16 percent to $1.23 billion from $1.06 billion.
For the first quarter, G-III anticipates a loss of 2 cents to 6 cents per share on revenue of about $215 million. The company predicts fiscal 2013 earnings in a range of $2.62 to $2.72 per share, with revenue of approximately $1.33 billion.
Analysts expect a first-quarter loss of 3 cents per share on revenue of $217.2 million and full-year earnings of $3.19 per share on revenue of $1.36 billion.
Under terms of its joint venture pact in China, G-III said the stores will be run under the Calvin Klein Performance store license previously given to G-III by Calvin Klein Inc., a PVH Corp. subsidiary.
Products that will be available include women's active performance wear clothing suited for such activities as yoga, running tennis and biking.
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