G-III Apparel
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.