By Dean Seal

G-III Apparel Group said it now expects lower sales but higher profit this fiscal year as unseasonable weather was offset by lower costs associated with certain brand launches.

The company behind fashion brands such as DKNY, Calvin Klein and Tommy Hilfiger said it now expects about $3.15 billion in revenue for the fiscal year ending Jan. 31, cutting $50 million from its previous target.

Earnings are now expected to come in between $185 million and $190 million, adding $6 million to both ends of its prior estimates. That would be up from $176.2 million for fiscal 2024.

Adjusted earnings, which strip out one-time items, are now forecast to hit $4.10 to $4.20 a share instead of $3.95 to $4.05 a share. Analysts surveyed by FactSet had been projecting $4.01 a share.

Chief Executive Morris Goldfarb said the higher profit guidance was driven by the company's outperformance in the third quarter. The company also cut $5 million to its forecast full-year expenses tied to the launches of Donna Karan, Nautica and Halston.

For the quarter ended Oct. 31, G-III posted a profit of $114.8 million, or $2.55 a share, down from $127.6 million, or $2.74 a share, in the same period last year. Adjusted earnings were $2.59 a share, topping analyst estimates for $2.28 a share.

Sales rose 1.8% to $1.09 billion. Both analysts and the company's guidance had projected $1.1 billion, according to FactSet.

Goldfarb called out a challenging consumer environment during the quarter along with unseasonable weather and supply-chain disruptions. But sell-throughs across G-III's brands strengthened in the current quarter and the company's inventories are poised to support remaining holiday-season demand, he said.

Shares fell 2.6% to $30.77 in premarket trading Tuesday.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

December 10, 2024 08:12 ET (13:12 GMT)

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