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What: Shares of clothing retailer G-III Apparel Group (NASDAQ:GIII) soared 19% today after its quarterly results and outlook topped Wall Street expectations.
So what: G-III suffered last year on spiking material costs and slumping sales, but today's first-quarter results -- EPS of $0.05 on a revenue jump of 19% -- coupled with upbeat guidance for 2013 reinforces optimism on Wall Street that the worst is behind it. In fact, the company's retail segment saw double-digit same-store sales growth while gross margin expanded 400 basis points, suggesting that its competitive position is strengthening, as well.
Now what: Management now sees full-year EPS of $3.20 to $3.30 on sales of $1.57 billion, up nicely from its prior view of $3.10 to $3.20 and $1.55 billion. "Current booking activity and sell-through rates, as well as positive feedback from our retail customers on our upcoming merchandise programs, give us increased confidence in our full year outlook," said Chairman and CEO Morris Goldfarb. With the stock now up more than 100% over the past year and trading at a P/E of around 20, much of that optimism might already be baked into the valuation.
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