Why G-III Apparel Shares Are Shooting Higher Today

G-III Apparel Group Ltd GIII reported second-quarter FY24 sales growth of 9% year-on-year to $659.76 million, beating the analyst consensus of $592.32 million.

The gross profit rose 20.8% Y/Y to $276.6 million, with the margin expanding 410 basis points to 41.9%.

The operating margin was 4.7%, and operating income for the quarter rose 0.7% to $31.5 million.

Adjusted EPS of $0.40 beat the analyst consensus of $0.01.

The company held $197.7 million in cash and equivalents as of July 31, 2023.

Outlook: G-III sees FY24 sales of about $3.30 billion (prior view: $3.29 billion) versus the consensus of $3.27 billion. It sees FY24 adjusted EBITDA of $284 million - $289 million (prior view $267.0 million-$272.0 million).

It raised adjusted EPS guidance to $3.20 - $3.30 from $2.80 - $2.90 versus the consensus of $2.80.

The company expects Q3 adjusted EPS of $2.03 - $2.13, above the consensus of $1.83. It anticipated Q3 sales of $1.13 billion, below the consensus of $1.16 billion.

Licensing Agreement: G-III Apparel and Hanesbrands Inc. HBI have entered into a strategic multi-year license agreement for the design, production and distribution of outerwear for the Champion and C9 Champion brands in North America.

Price Action: GIII shares are trading higher by 15.5% at $22.30 on the last check Thursday.