UPDATE: G-III Apparel Shares Surge On Upbeat Q2 Results

Shares of G-III Apparel Group

surged more than 4% in pre-market trading after the company reported stronger-than-expected results for the second quarter. The New York-based company posted quarterly net income of $6.2 million, or $0.29 per share, up from $3.6 million, or $0.17 per share, in the year-ago period. Its net sales climbed 39% to $424.0 million versus $304.2 million However, analysts were expecting a profit of $0.16 per share on revenue of $390.98 million. Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, “We are pleased to report a strong second quarter. In spite of losses related to the transition and repositioning of our recently acquired G.H. Bass business, we were able to show higher overall profits due to strong shipments in our licensed and non-licensed businesses. There were strong performances by a number of Calvin Klein divisions and several of our outerwear and dress businesses, all of which enabled us to exceed our forecast for the second quarter.” For the full fiscal year ending January 31, 2015, G-III Apparel now expects net income of $4.00 to $4.15 per share on net sales of around $2.11 billion. The company had earlier expected earnings of $4.05 to $4.20 per share on net sales of around $2.06 billion. G-III Apparel also projects FQ3 earnings of $2.75 to $2.90 per share on net sales of approximately $805 million. Analysts expected earnings of $3.14 per share on sales of $785.27 million. G-III Apparel shares gained 4.06% to $87.60 in pre-market trading.