G-III’s recent acquisition of Marvin Richards and Winlit helped to boost both the top and bottom line during the second quarter. Apart from the contributions from acquisitions, the increase in net sales was said to be driven by stronger men’s and women’s non-licensed outerwear and licensed sports apparel. Net sales increased 24.0% to $54.6 million in the fiscal second quarter ended July 31 from $44.0 million in the year-ago period.

Gross margin declined 80 basis points to 23.4% of sales, due primarily to lower commission fee income compared to last year. SG&A increased due to the acquired businesses, but this was partially offset by lower advertising expenses.

The company narrowed its fiscal Q2 net loss to $301,000, or 4 cents per share, compared to a net loss of $1.7 million, or 23 cents per share, in Q2 last year. Last year's second quarter included a non-cash charge of $882,000, equal to 12 cents per share, associated with the company's sale of its joint venture interest in a factory in China. Excluding that charge, the net loss would have still declined by nearly 64% for the period.

G-III’s order book is up by 45% over last year, primarily because of the recent acquisitions, but management said that pre-season orders for the existing business are also growing “at a good pace.”

Management also said that its core sports business continues to be “solid” and, after the acquisitions, will represent roughly 15% of total sales.