Clothing manufacturer G-III Apparel Group, Ltd. saw net losses widen during the first quarter despite sales rising over the period.
Net losses reached $847 thousand or $0.04 per share versus loss of $520 thousand or $0.03 per share last year. On average, six analysts polled by Thomson Reuters expected the company to report loss of $0.04 per share. Net sales grew 16.5% to $229.45 million from the prior-year quarter. Analysts had a consensus revenue estimate of $213.39 million.
Morris Goldfarb, G-III’s Chairman and Chief Executive Officer, said, “Our first quarter results met our expectations. We anticipate improved profitability for the full year as we expect input costs will moderate compared to prior year levels. Early booking trends for fall are good and give us confidence in our outlook for the full year.”
“We believe we have a clear strategic advantage for us that our major growth initiatives, across a variety of categories, are underpinned by some of the best brands in the world. We are building significant businesses in a number of important categories. We are creating several platforms that are expected to show operating margin improvements as we increase in sales volume. In addition, we plan to layer on additional brands to these platforms.”
Moving ahead, for its second fiscal quarter, the company is forecasting net sales of approximately $250.0 million compared to $230.0 million in the comparable quarter last year.
The company is also forecasting net income for the second fiscal quarter between $800 thousand and $1.6 million, or between $0.04 and $0.08 per share, compared to net income of $1.6 million, or $0.08 per share, last year. Analysts expect the company to earn $0.08 per share, on revenues of $249.58 million.
G-III Apparel reiterated its prior guidance for the full fiscal year ending January 31, 2013 and continues to forecast net sales of approximately $1.35 billion and net income of between $54.0 million and $56.0 million, or a range of $2.62 and $2.72 per share. Analysts expect the company to earn $2.70 per share, on revenues of $1.33 billion.
The company also continues to project EBITDA for fiscal 2013 to increase approximately between 11% and 15% to approximately $102.5 million to $106.0 million.