G-III Apparel Group, Ltd GIII reported sharply lower earnings for the second quarter and revenue also fell shy of the estimates. On top of it, the company slashed its full year forecast.
The company suffered a net loss of $1.3 million or a loss per share of $0.03 compared to net income of $12.5 million or $0.27 a share in the year-ago period. Results included professional fees of about $0.04 a share. Excluding this, it would have earned $0.01 a share, which is sharply lower than the Street estimates of $0.18 a share.
G-III Apparel's net sales witnessed 7 percent drop from $473.9 million to $442.3 million and missed the analysts' predictions of $484.85 million.
Chairman, CEO and President Morris Goldfarb commented, "We believe that the risk of continued softness in the retail outlet environment has somewhat abated as we have now liquidated inventory from last year's holiday season and are currently adding some great new fall products to our store inventory. Lastly, we believe forecasted cool weather trends should be in our favor this fall and holiday season compared to last year and should provide the impetus for improved sales for Wilsons and Bass in the second half."
Going forward, G-III expects EPS of $1.50 - $1.60 on revenue of $940 million for the third quarter. Analysts expect the company to deliver an EPS of $2.02 on revenue of $1.01 billion.
For the full year, the company reduced its EPS outlook from $2.55-$2.65 to $2.16-$2.26. Similarly, revenue forecast has been slashed from $2.56 billion to $2.48 billion. On an adjusted basis, the company guided EPS between $2.20 and $2.30. Street is looking for an EPS of $2.58 on revenue of $2.56 billion.
The stock traded down by $6.47, or 15.49 percent, to $35.30 in pre-market trading on Tuesday.
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