Shares of G-III Apparel (GIII) - Get Report took off on Thursday after the owner of clothing and accessories brands including DKNY, Donna Karan and Andrew Marc posted fiscal second-quarter results that met analysts' forecasts but raised its fiscal 2020 guidance as it continues to navigate the impact of tariffs on its business.
The New York-based company, which also licenses brands including Levi's, Dockers, Calvin Klein, Guess? Tommy Hilfiger and Karl Lagerfeld Paris, said it earned $11.1 million, or 23 cents a share, in the quarter ended July 31, vs. $10.1 million, or 22 cents a share, in the same period a year ago.
Analysts polled by FactSet had been expecting earnings of 22 cents a share. Sales came in at $643.9 million, above the $624.7 million in brought in a year ago though below analysts' forecasts of $656.2 million.
"We are pleased to report second-quarter results that met our expectations and were fueled by continued outperformance in our wholesale business, enabling us to navigate the ever-changing retail landscape," CEO Morris Goldfarb said in a statement, noting the company's supply chain and vendor relationships "have helped us mitigate some of the tariff headwinds."
"Based on the additional tariffs that were just implemented, we feel it is prudent to revise our guidance to a more conservative posture for the remainder of this fiscal year," Goldfarb said.
However, the company's updated fiscal 2020 guidance was actually higher than Wall Street's current forecasts, sending the stock surging Thursday.
For fiscal 2020, G-III said it expects to see non-GAAP net income of between $156 million and $161 million, or between $3.15 and $3.25 a share, on sales of approximately $3.3 billion.
Analysts polled by FactSet had been expecting full-year fiscal earnings of $3.17 a share on sales of $3.2 billion.
Shares of G-III were up more than 25%, or $4.74 a share, at $23.58 on the Nasdaq Stock Market.