G-III Apparel Earnings Rise Despite Sales Slump

The company posted earnings of 46 cents a share for the three months ending July 31, a significant jump from 25 cents a share during the same period last year. Excluding one-time items, adjusted earnings hit 26 cents, surpassing the 23 cents anticipated by analysts polled by FactSet. Chief Executive Morris Goldfarb credited the bottom-line growth to gross margin expansion, emphasizing that the recent Marc Jacobs acquisition remains a cornerstone of the firm’s long-term portfolio strategy.

Despite the profit gains, total sales reached $554.1 million, failing to meet Wall Street’s $570.4 million target. The retailer reaffirmed its full-year sales outlook of approximately $2.71 billion, a figure that accounts for the $460 million loss stemming from the expiration of licensing agreements for Calvin Klein and Tommy Hilfiger products. Looking ahead, management raised its annual earnings forecast to a range of $4.10 to $4.20 per share, assuming current tariff rates remain constant through the remainder of the fiscal year.