Sales increased 21% to $83.9 million, easily surpassing management's guidance of $75 million. The company did lose $0.05 a share, but that was much narrower than the $0.19-$0.24 loss that was expected. Management attributed the results to strong performances from sales of licensed brands by Calvin Klein, Guess?
G-III designs, manufactures, and markets a broad range of outerwear and sportswear, and it deals in both licensed and proprietary brands. Its products are sold in upper-end department stores such as Macy's
The company raised its earnings and sales guidance for the year, and here's where the math becomes a little fuzzy for me. The company beat its quarterly guidance by $0.14-$0.19 a share. Yet it raised its yearly guidance by only $0.08, to $0.98-$1.03 a share. It's been a long time since I was in grade school, but doesn't this indicate that the company expects to underperform its expectations for the rest of the year?
G-III seemed to have a good quarter overall. That makes the yearly guidance and lack of third-quarter estimates all the more curious. For me, this stock won't get a fashionable look until I get a good explanation.
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Fool contributor Larry Rothman is happy to receive feedback, and he promises to read it when he's not being wrestled by his three children. Feel free to email him at firstname.lastname@example.org. He doesn't have any positions in the companies mentioned. The Fool has a disclosure policy.