G-III beat expectations for 1Q and forecast

G-III's shares up after hours on strong quarter and forecasts

Associated Press

NEW YORK (AP) -- G-III Apparel Group Ltd.'s shares jumped nearly 8 percent in after-hours trading Monday after the clothing company moved to a first quarter profit, which beat market expectations. It also raised its full-year forecast.

The company, based in New York, sells clothing and accessories under brands such as Marc New York. It has fashion licenses for brands including Calvin Klein and Kenneth Cole, as well as licenses with professional sports teams and colleges.

G-III reported after the market closed that it earned $1.1 million, or 5 cents per share, for the quarter that ended April 30. That's compared with a loss of $847,000, or 4 cents per share, in the first quarter last year.

Revenue increased 19 percent to $272.6 million from $229.4 million, helped by stronger sales of Calvin Klein products and its acquisition of the swimwear brand Vilebrequin last summer.

Analysts polled by FactSet were expecting the company to post a loss of 5 cents per share for the quarter on revenue of $267.4 million.

G-III CEO Morris Goldfarb said that based on current booking activity and other feedback, the company has increased confidence in its full-year outlook and expects to expand some brands soon. That includes the launch of an Ivanka Trump collection and Calvin Klein swimwear.

The company now expects to earn $3.20 to $3.30 per share for the full year on revenue between $1.57 billion. That is compared to its previous forecast of earnings between $3.10 and $3.20 per share on revenue of $1.55 billion. Analysts were anticipating earnings of $3.20 per share on revenue of $1.55 billion for the year.

G-III also forecast earnings of 6 to 10 cents per share for its second quarter on revenue of $287 million; analysts had forecast earnings of 13 cents on revenue of $282.7 million.

The company's stock rose $3.26 in after-hours trading to $46. It had ended the regular trading session up 63 cents to close regular trading at $42.74.

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