Jun 7, 2011
G-III Apparel posts narrower Q1 loss; sees weak Q2
Jun 7, 2011
June 6 - G-III Apparel Group Ltd posted a narrower quarterly loss and the company forecast second-quarter earnings largely below Wall Street estimates, sending its shares down 9 percent in extended trade.
G-III Apparel Group licences clothes under the Guess Inc brand
Rising raw material costs, particularly for cotton, have been a worry for several apparel companies, leading many of them to forecast muted earnings.
For the second quarter, the company -- which licenses clothes and accessories under the Calvin Klein, Sean John, Kenneth Cole Productions Inc , Cole Haan, Guess Inc brands -- projected a profit of 18-22 cents a share, on sales of about $215 million.
Analysts, on average, were expecting earnings of 22 cents a share on sales of $221.2 million for the second quarter, according to Thomson Reuters I/B/E/S.
Net loss for the first quarter was $520,000, or 3 cents a share, compared with a loss of $1.4 million, or 7 cents per share, a year ago.
Net sales rose 28 percent to $196.9 million.
Analysts had expected sales of $195.4 million for the first quarter.
Shares of the company fell 9 percent to $34.95 in trading after the bell. They closed at $38.47 on Monday on Nasdaq.
(Reporting by Abhishek Takle in Bangalore, additional reporting by Viraj Nair; Editing by Sriraj Kalluvila)
© Thomson Reuters 2023 All rights reserved.