G-III Apparel Q3 net sales up 12 percent, revises outlook

G-III Apparel Group for the third quarter of fiscal 2016 ended October 31, 2015 reported net sales increase of 12 percent to 910 million dollars from 812 million dollars in the year-ago period.

“We are pleased to report a strong third quarter. Our organic sales and profit increase clearly differentiate us as a leader in our industry. We achieved this performance in a challenging market environment. Although outerwear is off to a slow start at retail, our dress, sportswear and handbag businesses performed well in the quarter,” said Morris Goldfarb, G-III's Chairman, Chief Executive Officer and President.

Revises full year outlook

The company's net income for the quarter increased to 87.2 million dollars, or 1.87 dollars per diluted share, from 80.6 million dollars, or 1.76 dollars per diluted share, in the prior year's comparable period. Non-GAAP net income per diluted share increased to 1.85 dollars from 1.54 dollars in the prior year's third quarter.

The company also revised its prior guidance for the full fiscal year ending January 31, 2016. It is continuing to forecast net sales of approximately 2.40 billion dollars and now expects net income to be between 124 million dollars and 131 million dollars, or a range between 2.67 dollars and 2.82 dollars per diluted share, compared to its previous guidance of net income between 129 million dollars and 134 million dollars, or a range between 2.78 dollars and 2.88 dollars per diluted share, and to net income of 110.4 million dollars, or 2.48 dollars per diluted share in the fiscal year ended January 31, 2015.

The company is forecasting non-GAAP net income per diluted share for the full 2016 fiscal year to increase by 17 percent to 24 percent to between 2.65 dollars and 2.80 dollars compared to 2.26 dollars for the 2015 fiscal year. The company is now projecting adjusted EBITDA to increase between 22 percent and 28 percent to between approximately 227 million dollars and 238 million dollars compared to adjusted EBITDA of 186.6 million dollars in fiscal 2015 and from its previous guidance of adjusted EBITDA of between approximately 237 million dollars and 245 million dollars.