G-III Apparel Group returned to profitability during the second quarter ended July 31, 2010 as accelerated sales and improved margins in its wholesale and retail businesses boosted its top line to better-than-expected results.


In a release, the company said the sales increase was “stronger than expected” due to increased wholesale sales of women’s dresses, sportswear and suits, as well as improved performance from the company’s Wilson retail outlets.


G-III licenses clothes and accessories under the Calvin Klein, Guess?, Kenneth Cole and Nine West brands, among others.


Consolidated sales for the quarter were up 39% to $189.0 million from $135.0 million a year ago. Net income, which was boosted by the aforementioned sales hike and margin improvement in the wholesale and retail segments, improved to $3.0 million, or 15 cents per diluted share, as compared to a net loss of $2.8 million, or 17 cents per share, in the year-ago period.


In a conference call with analysts, Morris Goldfarb, G-III’s chairman and CEO, said the company was boosting its 2011 outlook due to better-than-expected results across the board. G-III now expects sales for the fiscal year ending Jan. 11, 2011 to be approximately $1.03 billion as compared to its initial forecast of about $950.0 million.


Net income is expected to be in the range of $52.0 million to $54.0 million, or $2.60 to $2.70 per diluted share as compared to G-III’s prior earnings forecast, which was between $44.0 million and $46.0 million, or $2.20 to $2.30 per diluted share.


Goldfarb added that the company is expecting its dress and sportswear business along with its fall/winter outerwear business to carry the company to a “strong second half” of 2010.


“We have strong momentum going into the second half of the year with a solid order book and a well balanced diversified business model which we believe will result in continued growth in sales and profits,” Goldfarb concluded.