G-III Apparel Group Ltd capped the year with fourth-quarter profits exceeding market expectations. The company cites the public demand for fashion brands such as Calvin Klein and Guess for its success.
Accordingly, revenues rose 14% to $193.8 million, exceeding estimates in the mid $170 million range and topping the $170.7 million mark set in the comparable period last year. In addition, net income for the apparel company rose to $9.0 million, or 49 cents a share, a vast improvement on the loss of $32.1 million, or $1.93 per share, in the prior year.
After adjustments, the company earned 40 cents a share, a drastic climb from the expected 2 cents a share as predicted by analysts.
“We had a strong fourth quarter and finished the year with good momentum heading into spring, said Morris Goldfarb, G-III’s Chairman and CEO.
The company seems to be capitalizing on its expansion into higher-margin businesses such as dresses, sportswear, and owned-brands such as Andrew Marc and Lazard Capital Markets, analyst Todd Slater said.
Beyond that, the company also said it was “actively looking for acquisitions” between $100 million and $200 million.