G-III Apparel Group, Ltd. reported second quarter earnings doubled to $12.4 million, or 27 cents a share, from $6.2 million, or 14 cents, a year ago. Driven by robust wholesale and retail performance, net sales increased 12 percent to $474 million from $424 million in the year-ago period.
Morris Goldfarb, G-III chairman, CEO and president, said, “We are pleased to report another strong quarter of growth and increased profitability. Growth in the quarter was driven by increases in our wholesale segment and an increase in comparable store sales from our G.H. Bass stores.”
Goldfarb concluded, “We will continue to implement our highly successful business strategy. We are excited to move into the fall and holiday seasons with a strong order book, good sell-through and improved profitability. We believe that our combination of market leading brands, great product and world class execution provide an on-going opportunity to enhance our leadership position and drive superior value to our shareholders, customers and partners.”
The company revised its prior guidance for the full fiscal year ending January 31, 2016. The company is now forecasting net sales of approximately $2.40 billion and net income between $129 million and $134 million, or a range between $2.78 and $2.88 per diluted share, compared to its previous guidance of net sales of approximately $2.40 billion and net income between $123 million and $128 million, or a range between $2.66 and $2.76 per diluted share.
For the fiscal 2015 year ended January 31, 2015, net sales were $2.12 billion and net income was $110.4 million, or $2.48 per diluted share.
On an adjusted basis, excluding items resulting in other income in fiscal 2015 of $0.22 per share, net of taxes, non-GAAP net income per diluted share was $2.26 for the 2015 fiscal year.
The company is now projecting adjusted EBITDA for fiscal 2016 to increase between 27 percent and 31 percent to between $237 million and $245 million compared to its previous guidance of adjusted EBITDA between approximately $225.0 million and $233.0 million. Adjusted EBITDA for fiscal 2015 was $186.6 million.
For its third fiscal quarter ending October 31, 2015, the company is forecasting net sales of approximately $920.0 million compared to $812.3 million in the comparable quarter last year. The company is also forecasting net income for the third fiscal quarter between $83.0 million and $85.3 million, or between $1.78 and $1.83 per diluted share, compared to net income of $80.6 million, or $1.76 per diluted share, in last year's third quarter.
On an adjusted basis, excluding items resulting in other income in the third fiscal quarter ended October 31, 2014 of $0.22 per share, net of taxes, non-GAAP net income per diluted share was $1.54 in the third fiscal quarter ended October 31, 2014.
G-III is a leading manufacturer and distributor of outerwear, dresses, sportswear, swimwear, women's suits, women's performance wear, footwear, luggage, women's handbags, small leather goods and cold weather accessories under licensed brands, owned brands and private label brands. G-III sells swimwear, resort wear, and related accessories under our own Vilebrequin brand. The company's team sports business owns licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and more than 100 U.S. colleges and universities. Other owned brands include Bass, G.H. Bass, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. G-III also operates retail stores under the Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.