Barclays Comments On G-III Apparel's Q2, Maintains At Overweight

G-III Apparel Group, Ltd. (NASDAQ: GIII) reported its second-quarter results on Wednesday which were higher than expected.

In a report, Barclay's Luxury, Apparel & Footwear analyst Joan Payson reviewed the print, noting that the company's reported earnings of $0.27 per share exceeded the $0.20 per share she was expecting while revenue of $474 million represented a "slight beat."

Payson said that GIII's revenue rose 12 percent as the company saw "strength" in Calvin Klein sales and G.H. Bass. Wholesale revenue rose 15 percent due to increased productivity and door penetration, including Calvin Klein handbags, suit separates and CK, Eliza J and Vince Camuto dresses.

Payson further added that wholesale growth is expected to continue rising as it will benefit from new and developing brads, such as G.H. Bass women's which will launch in 250 doors this fall, in addition to expansions from Ivanka Trump and the addition of Karl Lagerfeld which represents a $500 million-plus brand opportunity and could add nearly four percentage points of wholesale growth per year.

The analyst also pointed out that the company will expand its dresses, sportswear and bags in the fourth quarter and shoes will launch in the first half of 2017. By expanding footwear, GIII can address a "broader" category opportunity for new and existing bands and could replicate its "best-in-class-model" for dresses and outwear.

Finally, Payson raised her full year fiscal 2016 earnings per share estimate to $2.88 from $2.76.

Shares remain Overweight rated with an unchanged $75 price target.