GIII Surges On Surprise Q2 Profit

Shares of G-III Apparel Group Ltd

advanced after the company reported surprise Q2 profit and raised its projections for the full-year. GIII reported its Q2 net income at $3 million or $0.15 per share, as compared to a loss of $2.8 million or $0.17 per share in the year-ago period. The company’s sales increased 39% y/y to $189 million, driven by a rise in the wholesale sales of women's dresses, sportswear and suits, along with increased sales from its Wilsons retail outlet store business. The analysts were expecting the company to report a loss of $0.02 per share. GIII has also raised its profit outlook for the full-year to the range of $2.60 to $2.70 per share, up from its earlier forecast of about $2.30 per share. G-III’s Chairman and Chief Executive Officer, Morris Goldfarb, said, “The impact of our increasing diversification, both by product categories and brand, was demonstrable in the second quarter. We now have built a dress and sportswear business that is shipping twelve months a year. We are looking ahead to a strong second half of the year as a result of the combination of our dress and sportswear business with our fall and winter outerwear business.” “Our Wilsons business is on track to show much improved results for this year coming off an improved first half of the year. We believe that Wilsons is well positioned for a strong second half of the year. We also are quite excited about our Calvin Klein handbags and luggage launch, which we will begin shipping next year and will also further diversify our business,” Goldfarb added. GIII’s shares gained 14.27% to $27.59 at 10:15 am. Read more