G-III Apparel Group reports Q2 loss, lowers FY17 outlook

G-III Apparel Group reported 7 percent decrease in net sales for the quarter ended July 31, 2016 to 442.3 million dollars from 473.9 million dollars in the year-ago period. The company reported a net loss of 1.3 million dollars, or 0.03 dollar per share, compared to net income of 12.5 million dollars, or 0.27 dollar per diluted share, in the prior year's comparable period.

Commenting on the results, Morris Goldfarb, G-III's Chairman, CEO and President, said, "We sustained momentum in our wholesale businesses with consistent well designed high quality product that our customers responded to. While we have revised our short-term expectations to reflect external challenges in outerwear and in the outlet center environment, we are as confident as ever in our ability to grow revenues and increase our profitability over the next few years.”

lowers full-year earnings outlook

The company today revised its prior guidance for the full fiscal year ending January 31, 2017 and is now forecasting net sales of approximately 2.48 billion dollars and net income between 102 million dollars and 106 million dollars, or a range between 2.16 dollars and 2.26 dollars per diluted share, compared to its previous guidance of net sales of approximately 2.56 billion dollars and net income between 120 million dollars and 125 million dollars, or a range between 2.55 dollars and 2.65 dollars per diluted share.

On an adjusted basis, the Company is now forecasting non-GAAP net income per diluted share for fiscal 2017 between 2.20 dollars and 2.30 dollars per diluted share as compared to 2.44 dollars per diluted share in fiscal 2016. The company is now projecting adjusted EBITDA to decrease from the prior year between 2 percent and 5 percent to between approximately 199 million dollars and 206 million dollars. This compares to its previous guidance of adjusted EBITDA between approximately 228 million dollars and 236 million dollars.

For the third quarter, net sales are expected to be approximately 940 million dollars compared to 910 million dollars in the comparable quarter last year. The company is also forecasting net income to be between 70 million dollars and 76 million dollars, or between 1.50 dollars and 1.60 dollars per diluted share, compared to net income of 87.2 million dollars, or 1.87 dollars per diluted share, in last year's third quarter.

Picture:G-III Apparel Group,G. H. Bass