G-III Apparel Group, Ltd. managed growth in sales through both the margin and expense line to produce a steep gain on the bottom line.
On the sports side of the companys business, it is in the process of launching an Alyssa Milano collection of juniors sportswear that will be sold in stadium shops. The line has not yet shipped, but management said retailers had “received it well as far as writing the orders.”
Net sales in the third quarter increased 31.1% to $244.7 million from $186.6 million last year.
Gross margins expanded 50 basis points to 30.0% of net sales from 29.5% in the year-ago quarter, while the company shrunk its SG&A expenses 181 basis points to 12.1% of sales.
The combined effects of these efficiencies pushed net income up by 57.0% to $23.3 million from $14.8 million last year. Diluted earnings per share were up to $1.59 from $1.15 last year.
The company increased its guidance to net sales of approximately $430 million for the fiscal year, up from its previous forecast of $410 million.
Due to a combination of strong outerwear reorders and the impact of new, non-seasonal businesses, the company is now forecasting full year net income per diluted share in the range of 90 cents to 95 cents. This compares to its previous expectation of net income of 63 cents to 67 cents per share and the year-ago reported level of 58 cents per share.
