[ACCESSWIRE]
Upcoming AWS Coverage on Vince Holding Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 7, 2017 / Active Wall St. announces its post-earnings coverage on G-III Apparel Group, Ltd. (NASDAQ: GIII). The Company reported its fourth quarter fiscal 2017 financial results on March 27, 2017. The clothing and accessories maker missed top- and bottom-line expectations. Register with us now for your free membership at:
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One of G-III Apparel Group's competitors within the Textile - Apparel Clothing space, Vince Holding Corp. (NYSE: VNCE), is estimated to report earnings on April 04, 2017. AWS will be initiating a research report on Vince Holding in the coming days.
Today, AWS is promoting its earnings coverage on GIII; touching on VNCE. Get our free coverage by signing up to:
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Earnings Reviewed
For the fourth quarter ended January 31, 2017, G-III Apparel's net sales increased 14.4% to $603 million compared to $527 million in Q4 FY16, driven by strength in the Company's non-outerwear wholesale business, including new product launches, as well as the inclusion of approximately $29.0 million of net sales from the DKI business in the last two months of the quarter. The Company's revenue numbers missed analysts' consensus of $624.6 million.
G-III Apparel's gross margin was 32.8% compared to 33.9% in the prior year's fourth quarter. The gross margin percentage in the Company's wholesale operation segment was 26% compared to 24.7% in last year's same quarter. The gross margin percentage in the Company's retail operation segment was 41.8% compared to 45.9% in the prior year's comparable quarter.
G-III Apparel reported Q4 FY17 net loss of $20.1 million, or $0.42 per share, compared to net income of $8.0 million, or $0.16 per diluted share, in the fourth quarter of last year. On an adjusted basis, for the reported quarter, excluding, professional fees of $5.2 million, non-cash imputed interest expense of $1.0 million, severance of $3.9 million and asset impairments of $10.5 million equal to $0.26 per share, non-GAAP net loss was $0.16 per share for Q4 FY17 compared to non-GAAP net income per diluted share of $0.17 in Q4 FY16. The Company's reported numbers fell short of Wall Street's estimates of $0.09 per share.
Yearly Results
G-III Apparel's net sales for the fiscal year ended January 31, 2017 were up 1.8% to $2.39 billion from $2.34 billion in the prior year. Growth over the prior year was primarily the result of increases in the Company's wholesale non-outerwear business and net sales from the Donna Karan International ("DKI") business in the last two months of the fiscal year and was offset, in part, by softer demand for outerwear and a decline in net sales of the Company's retail businesses.
G-III Apparel reported GAAP net income for FY17 of $51.9 million, or $1.10 per diluted share, compared to $114.3 million, or $2.46 per diluted share, in the prior year. On an adjusted basis, non-GAAP net income per diluted share for the full fiscal 2017 year decreased to $1.42 from $2.44 in the prior fiscal year.
Segment Results
Net sales of G-III Apparel's wholesale operation segment increased 19.5% to $476 million from $399 million. Increases in the Company's Calvin Klein handbags and sportswear categories and the new launches of Karl Lagerfeld and Tommy Hilfiger as well as the inclusion of net sales from the Donna Karan wholesale business were the main drivers of the improvement compared to the prior year.
For Q4 FY17, G-III Apparel's net sales from retail operation segment decreased 2% to $172 million from $175 million primarily due to same-store sales decreases of 10% for the Company's Wilsons stores and 4% for its G.H. Bass stores.
Outlook
For the fiscal year ending January 31, 2018, G-III Apparel is forecasting net sales of approximately $2.73 billion and net income between $40 million and $45 million, or between $0.80 and $0.90 per diluted share. On an adjusted basis, excluding transitional expenses and imputed interest expense, the Company is anticipating non-GAAP net income between approximately $49 million and $54 million, or between $0.99 and $1.09 per diluted share. The Company is projecting full-year adjusted EBITDA for fiscal 2018 to be between $162 million and $171 million compared to adjusted EBITDA of $148.1 million in FY17.
For the first fiscal quarter ending April 30, 2017, G-III Apparel is forecasting net sales of approximately $500 million and a net loss between $20 million and $25 million, or between $0.41 and $0.51 per share.
Stock Performance
At the close of trading session on Thursday, April 06, 2017, G-III Apparel Group's stock price rose 2.56% to end the day at $24.05. A total volume of 1.68 million shares were exchanged during the session, which was above the 3-month average volume of 907.68 thousand shares. The stock currently has a market cap of $1.16 billion and is trading at a PE ratio of 21.57.
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