G-III APPAREL Q1 Profit Down, But Beats Estimates; Revises Up Annual Outlook; Stock Up – Update

(Adds Outlook, stock movement)

G-III APPAREL GROUP LTD (GIII) revealed a profit for first quarter that decreased from the same period last year but beat the Street estimates.

The company’s bottom line totaled $3.236 million, or $0.07 per share. This compares with $30.634 million, or $0.62 per share, in last year’s first quarter.

Excluding items, G-III APPAREL GROUP LTD reported adjusted earnings of $6.033 million or $0.13 per share for the period.

Analysts on average had expected the company to earn -$0.1 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 11.9% to $606.589 million from $688.757 million last year.

Outlook:

Following quarterly results and revision of annual outlook, GIII was trading up about 18% percent at $19.40 per share, in morning trade, on the Nasdaq.

Looking ahead, for the second quarter, the company expects net loss of $5 million to breakeven or net loss of $0.10 and breakeven per share, on sales of approximately $595 million, but higher than analysts’ estimate of $584.37 million.

Excluding items, the clothing manufacturer projects earnings ranging from a net loss of $3 million to net income of $2 million or per share loss of $0.06 to a profit of $0.04 per share. This comes in below the analysts’ view of $0.31 per share.

For full year 2024, the company has revised up its outlook, above estimates. GIII’s guidance reflects inflationary pressure on consumers and on its operations, as well as incremental costs of managing higher levels of inventory.

The Group now expects net income of $125 million – $130 million or EPS of $2.65 – $2.75, on sales of around $3.29 billion. Analysts on average expect sales of $3.19 billion. Earlier projection was for a profit of $117 million – $122 million or EPS of $2.40 – $2.50, on sales of approximately $3.23 billion.

Excluding items, G-III Apparel now projects income of $132 million – $137 million or $2.80 per share – $2.90 per share, above the analysts’ estimate of $2.54 per share. Previously, GIII was anticipating $125 million – $130 million or $2.55 per share – $2.65 per share.

G-III APPAREL GROUP LTD Q1 earnings at a glance (GAAP) :

-Earnings (Q1): $3.236 Mln. vs. $30.634 Mln. last year.
-EPS (Q1): $0.07 vs. $0.62 last year.
-Analyst Estimates: -$0.1
-Revenue (Q1): $606.589 Mln vs. $688.757 Mln last year.

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