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What: Shares of G-III Apparel Group (NASDAQ:GIII) were looking fashionable today, climbing as much as 15% after a strong second-quarter earnings report.
So what: The parent of a number of clothing brands, including Andrew Marc and Jessica Howard, said earnings per share came in at $0.17, well ahead of estimates at $0.10, while revenue soared 20.9% to $304.2 million, topping expectations of $287.9 million. CEO Morris Goldfarb said it was an excellent quarter for the company, citing "broad-based strength across many categories and brands." G-III also lifted its guidance for the year, saying it now expects EPS of $3.30-$3.40, $0.10 above its previous range, and sees full-year revenue of $1.61 billion. Analysts had expected per-share earnings of $3.30 on revenue of $1.57 billion.
Now what: You can't ask for much more from an earnings report than beating top-and-bottom-line estimates and raising guidance. Goldfarb also noted that the company's most recent acquisition, Vilebrequin, a swim line, is performing well, which seems to bode well for future acquisitions and growth. With its average valuation and a strong growth rate, I wouldn't be surprised to see G-III shares move higher from here.
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