G-III Apparel Group, Ltd. said net sales for the three months ended Oct. 31 increased by 3.4% to $363.5 million from $351.6 million in the same quarter of last year. Net income for the quarter increased by 12.2% to $32.3 million, or $1.87 per diluted share, compared to $28.8 million, or $1.68 per diluted share, in the prior year’s period.
In a conference call with analysts, Chairman and CEO Morris Goldfarb said growth was fueled by “strong increases” from the Calvin Klein dress and sportswear businesses.
Gross profit for the quarter improved to $125.6 million, up 11.7% from $112.5 million in the year-ago period.
Regarding outlook the company has revised its guidance and now expects sales of approximately $790 million for the year ending Jan 31. compared to net sales of about $770 million a year ago. Net income is expected to be in the range of $23.0 million to $23.7 million compared to its prior guidance of net income in the range of $16.6 million to $18.4 million, and diluted net income per share between $1.31 and $1.35, compared to its prior guidance of diluted net income per share between 95 cents and $1.05.
The company is also now forecasting EBITDA for the year to increase approximately 36% to 40% from fiscal 2009 to a range of approximately $49.8 to $51.3 million compared to its prior guidance of EBITDA in the range of $40.2 million to $43.2 million.
