Fashion label Calvin Klein’s corporate parent G-III Apparel Group, Ltd. (GIII, Financial) saw its share price take off on Thursday in the wake of an upbeat earnings report for its fourth quarter of fiscal 2022 and strong outlook for the next fiscal year.
The company’s stock price rocketed by 10.8% in early Thursday trading after it reported fourth-quarter 2021 profits that leaped over expectations and offered encouraging guidance. Approaching midday, shares were hovering around $29.18, up 10.91%. G-III stock is down 7.1% over the past year while the S&P 500 is up 10.1%.
G-III reported net income of $48.4 million, or 98 cents per share, up from $14.6 million, or 30 cents per share, in the same quarter of last year. Sales of $748.2 million were an improvement on $526.2 million from the prior-year quarter. The FactSet consensus was for EPS of 63 cents and sales of $740.2 million.
G-III said it has increased the number of shares available in its repurchase plan to 10 million from 2.3 million. Guidance for 2023 sales is approximately $3 billion, with EPS expected to be in the range of $4.20 to $4.30. The FactSet consensus estimate is for sales of $2.886 billion and EPS of $3.60.
Morris Goldfarb, G-III’s Chairman and CEO, said in a statement:
“Fiscal year 2022 was a testament to the power of G-III. We continued to build upon our strong foundation and delivered our highest annual net income per diluted share in our company’s history. We captured market share by anticipating demand and working with retail partners, despite the significant supply chain challenges. We are in a strong financial position affording us the flexibility to continue to invest in our future.”
Net sales for the fiscal year ended Jan. 31, 2022 increased 35% to $2.77 billion from $2.06 billion in the prior year. The company reported net income for the fiscal year of $200.6 million, or $4.05 per diluted share, compared to $23.5 million, or $0.48 per diluted share, in the prior year.
The company noted that it previously completed the restructuring of its retail operations segment way back in fiscal 2021 and closed its Wilsons Leather and G.H. Bass stores. Included in the company’s results for the fiscal year ended Jan. 31, 2021 were net losses from the Wilsons Leather and G.H. Bass store operations of $55.7 million, or $1.14 per diluted share, which skewed comparable results on some metrics.
