Source: Company reports
1Q17 RESULTS
G-III Apparel Group reported record first-quarter net sales of $457.4 million, up 5.6% year over year and in line with the consensus estimate. Management commented that the wholesale business had transcended the tough environment in fiscal 1Q17 and is now gaining momentum, particularly in Calvin Klein and in dresses, including Eliza J and the new Tommy Hilfiger line.
Although the retail business did not perform in line with plans, management has taken measures that are expected to improve top- and bottom-line performance in the second half. Comps for the retail business were negative.
Operating expenses were higher than expected due to startup costs for growth initiatives. However, strength in the wholesale business more than offset softness in the retail business.
EPS was $0.06, ahead of the $0.02 consensus estimate and compared to $0.15 in the year-ago quarter.
2017 OUTLOOK
The company reiterated its FY17 revenue guidance of approximately $2.62 billion and EPS of $2.55–$2.62. The prior year’s adjusted EPS of $2.44 excludes $0.02 in other income.
For the second quarter, the company expects revenues of approximately $485.0 million, compared to consensus of $457.4 million, and EPS of $0.15–$0.19, compared to consensus of $0.18.