G-III Apparel Group reported that its sports licensing division is
growing sales in the low-single-digits so far this year, helped by
strength in MLB product and across its women's categories. Excluding a
lost tier of distribution in the NFL business, sports licensing sales
would likely be ahead about 20%.
G-III's baseball business is running double-digits ahead of last year.
The NFL business G-III is permitted to distribute is ahead of last
year. The collegiate business is seeing growth in sportswear
categories. Overall, G-III continues to “stand out” in sports
licensing with its outerwear product, and it is “aggressively” looking
for an acquisition to spur growth.
Company-wide, Q3 sales rose 21% to $84 million from $69 million. Gross
margins improved to 26.1% from 24.4% due to better sell-through at the
retail level. SG&A expenses increased $4.7 million to $23.3 million
from $18.6 million due to expenses tied to acquisitions. The net loss
of $884,000, or five cents a share, compares with a net loss of $1.7
million, or 14 cents, a year ago. Looking ahead, the company is
confident it will reach its sales target of approximately $510 million
this year.
