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Apparel Designer G-III Rises on Earnings and Guidance

Donna Karan and Tommy Hilfiger parent G-III trade higher after reporting better-than- expected fiscal-first-quarter earnings as the U.S. recovery continues.

Shares of G-III Apparel  (GIII) - Get G-III Apparel Group, Ltd. Report were higher Monday after the apparel designer and retailer reported fiscal-first-quarter earnings that beat expectations and gave upbeat full-year guidance.

Shares of the New York company at last check rose7.9% to $33.92. The shares have traded on Monday up as much as 14% at a 52-week high $35.80.

For the quarter ended April 30, G-III swung to a profit of $26.3 million, or 53 cents a share, from a loss of $39.3 million, or 82 cents a share, in the year-earlier quarter.

Sales totaled $519.9 million, up 28% from $405.1 million a year earlier. 

The FactSet consensus estimate from Wall Street's analysts was GAAP earnings of 15 cents a share on revenue of $463 million.

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"With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating and our overall business in North America is getting stronger," said Morris Goldfarb, G-III's chief executive, in a statement. 

G-III designs and markets apparel and accessories from owned labels and licensed brands. Its portfolio includes Donna Karan, Calvin Klein and Tommy Hilfiger. 

"[These] trends provide a good indication for the remainder of the year and give us confidence that we and our industry are well on our way to recovery," Godfarb added.

For the second quarter, G-III expects earnings per share to range 3 cents to 13 cents on revenue of $460 million. The FactSet consensus is earnings of 7 cents a share on sales of $486.7 million.

For fiscal 2022, G-III is guiding for earnings per share between $2.60 and $2.70 on sales of $2.57 billion. The FactSet estimates are sales of $2.54 billion and earnings of $2.41 a share.