What happened

Shares of G-III Apparel Group (NASDAQ:GIII) were down 10.1% as of 2 p.m. EDT Wednesday, extending last month's more-than-40% decline, after the clothing and apparel company announced mixed fiscal first-quarter 2020 results and disappointing near-term guidance.

G-III's quarterly net sales climbed 3.6% year over year to $633.6 million, translating into adjusted net income of $0.25 per share, up from $0.22 per share in the year-ago period. Analysts, on average, were modeling lower EPS of $0.22 on revenue closer to $650 million.

Blue, white, and red stock market chart on digital display indicating losses.

Image source: Getty Images.

So what

G-III Chairman and CEO Morris Goldfarb was quick to point out earnings were near the high end of the company's own target range, helped by the relative outperformance of its five "global power brands": DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld.

"We know disruption in the retail industry has never been greater, but we remain confident in our ability to adapt to unique challenges," Goldfarb added. "We are well positioned for a solid year and I am confident we are poised to achieve significant growth over the next several years."

Now what

For the current fiscal second quarter, however, G-III expects net sales to increase 5.7% to roughly $660 million, with adjusted net income per share between $0.17 and $0.27. Most analysts were looking for earnings near the high end of that range on revenue closer to $665 million.

Finally, for the full year, G-III reiterated its guidance for net sales of $3.28 billion with adjusted net income per share between $3.25 and $3.35, though it added the caveat that this outlook assumes no future increases to the current 25% tariffs imposed on goods imported from China into the U.S.

In the end, given G-III's light sales to start the year and generally underwhelming outlook for the second quarter, it's no surprise to see the stock pulling back today.