G-III Apparel Group Ltd (NASDAQ:GIII) has reported third-quarter earnings that surpassed expectations but revenue that missed the mark, sending its shares lower in early Tuesday morning trading.
The clothing and accessories company, which owns the DKNY and Tommy Hilfiger brands, also announced the appointment of industry veteran Dana Perlman as its chief growth and operations officer, effective January 8, 2024.
For the three months to October 31, 2023, the company reported a 1% decline in revenue to $1.07 billion, below the $1.13 billion expected by Wall Street analysts.
Adjusted earnings per share (EPS) jumped 106% to $2.78, beating analysts’ consensus of $2.08, according to Zacks Investment Research.
The company said the earnings growth was supported by strength across its wholesale segment, prudent inventory management and financial discipline.
“Our solid year-to-date results showcase G-III’s ability to successfully navigate challenging market conditions and gives us the confidence to raise our full-year earnings per share guidance,” chairman and CEO Morris Goldfarb said in a statement.
“Over the last twelve months, we have made significant progress accelerating our strategic priorities. We are developing and are on track with four new growth initiatives to drive our business including the expansion of our owned Donna Karan brand, a long-term license for Nautica in North America, a master global licensing agreement for Halston, and a multi-year outerwear license for Champion.”
Commenting on Perlman’s appointment, G-III said she will draw on her over 20-year career in apparel, strategy and finance to drive innovation, optimize operations and identify new opportunities for G-III.
As part of the company’s leadership team, she will oversee strategy, finance, communications, IT and other operating functions.
The company now expects full-year net sales of roughly $3.15 billion and adjusted EPS of between $3.90 and $4 per diluted share.
Shortly after the opening bell, the company’s shares were down 3% at $28.75.
Contact the author at stephen.gunnion@proactiveinvestors.com