G-III Apparel Q3 Profit Beats Estimates, Shares Gain

Shares of

surged over 11 percent after the company reported stronger-than-expected earnings for the third quarter on Wednesday. However, the company lowered its earnings outlook for the year. The New York-based company posted quarterly net earnings of $87.2 million, or $1.87 per share, compared to $80.6 million, or $1.76 per share, in the year-earlier quarter. Excluding certain items, the company's earnings surged to $1.85 per share from $1.54 per share. Its sales climbed 12 percent to $909.9 million. However, analysts were expecting earnings of $1.78 per share on revenue of $912.9 million. The average estimate among 25 Estimize users was for earnings of $1.78 per share and revenue of $915.23 million. G-III Apparel also announced its plans to increase its buyback plan to 5 million shares. Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President, said, "We are pleased to report a strong third quarter. Our organic sales and profit increase clearly differentiate us as a leader in our industry. We achieved this performance in a challenging market environment. Although outerwear is off to a slow start at retail, our dress, sportswear and handbag businesses performed well in the quarter." For the year, G-III Apparel now expects earnings of $2.67 to $2.82, versus previous forecast of $2.78 to $2.88 per share. The company reaffirmed its revenue outlook of $2.40 billion, versus analysts' estimates of $2.41 billion. G-III Apparel shares climbed 11.9 percent to $53.03 at 2:00 p.m. ET