NEW YORK - G-III Apparel Group, Ltd. (NASDAQ:GIII) reported third-quarter earnings that exceeded expectations, but shares fell 2.75% as the company's full-year revenue guidance came in below analyst estimates.
The apparel maker posted adjusted earnings per share of $2.59 for the quarter ended October 31, beating the analyst consensus of $2.26. Revenue rose 1.8% YoY to $1.09 billion, in line with estimates.
"I am very pleased with our strong third quarter results, with earnings per diluted share exceeding our expectations, driven by over 30% organic growth of our key owned brands DKNY, Karl Lagerfeld, Donna Karan and Vilebrequin," said Morris Goldfarb, G-III's Chairman and CEO.
However, G-III lowered its full-year revenue forecast to approximately $3.15 billion, below the $3.19 billion analysts were expecting. The company cited the current macroeconomic environment and unseasonable weather as factors behind the reduced outlook.
On a positive note, G-III raised its full-year earnings guidance to $4.10-$4.20 per share, up from its previous forecast of $3.95-$4.05 and above the $4.01 consensus.
The company said it has experienced strengthening sell-throughs across its brands as it progressed into the fourth quarter. Inventories decreased 10% YoY to $532.5 million at the end of Q3.
G-III's total debt decreased 52% YoY to $224.2 million, after the company redeemed $400 million in senior secured notes in August.
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