G-III Apparel Group shares rise on 2Q results
Forbes, NY
Associated Press
Shares of G-III Apparel Group Ltd. climbed Wednesday, after the sportswear and outerwear maker reported better-than-expected second-quarter results and analysts said the company is poised for additional growth
Late Tuesday, the company said its fiscal second-quarter loss widened, mainly due to two acquisitions, but results still came in better than analysts had predicted. The company also forecast fiscal-year results in line with expectations.
New York-based G-III expects its women’s sportswear venture with Calvin Klein and its acquisitions of Andrew Marc and Wilsons The Leather Experts Inc.’s outlets to grow profit and sales.
Todd Slater, Lazard Capital Markets analyst, said in a note to investors Wednesday that the company has the infrastructure in place to double its size in several years, not assuming acquisitions.
“G-III exuded confidence in forward guidance,” wrote Slater, who rates the company “Buy.”
Brean Murray, Carret & Co. analyst Eric M. Beder wrote in a note to investors the company will have a more diverse and robust business model due to the “fruits of the first half of the year,” including the deal with CK and the acquisitions.
“We remain buyers of G-III shares,” he wrote.
Shares rose $2.10, or 12 percent, to close at $20.10. The stock has traded between $10.73 and $21 during the past 52 weeks.
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