G-III Apparel Group'S Third Quarter Performance Was Lower Than Expected, Net Profit Plunged 32% In The First 9 Months.

U.S.A

G-III NSDAQ:GIII, the accessories producer, released its third quarter results yesterday, due to the quarter's performance lower than Wall Street's forecast. The group's stock price fell 7% after yesterday's trading. The group's market capitalization is about $1 billion 190 million.

In the first three months of October 31st, net profit fell 19% to $70 million 600 thousand, diluted earnings per share of $1.5, a net profit of $87 million 200 thousand last year, and net sales fell 2.9% to $883 million 500 thousand, compared with net sales of 910 million US dollars last year.

Wall Street expected the group to make a profit of $1.54 per share in the third quarter, with a sales income of $937 million 600 thousand.

In the first nine months of October 31st, net profit plummeted from 32.3% to $72 million, diluted earnings per share of $153 million, and net sales fell 1.8% to 1 billion 780 million US dollars.

G-III Group Chairman and CEOMorris Goldfarb said that at present, the product category of the group is classified by professional system and the high-end of the group.

Including the recent acquisition of fashion brands Donna Karan and DKNY parent DKI, which can promote group sales and profits, the Group expects to have billions of dollars of revenue growth opportunities in the future.

Morris Goldfarb revealed that the first task of acquiring DKI is to build a complete and comprehensive product category and consolidate its business strategy.

In addition, the group adjusted its full year forecast for January 31st, including the cost of acquiring DKI's business on Thursday. Now the Group expects net sales of $2 billion 430 million, net profit from $67 million to $72 million, and diluted earnings per share between $1.41 and $1.51.

In a telephone conference with Wall Street analysts, MorrisGoldfarb stressed that the most powerful business of the group is wholesale business other than coats.

He explained that due to the exceptionally warm weather of the quarter, the wholesale business of the outer garment was negatively affected. The group plans to reduce its coat business in the next few years to avoid being trapped in the unusual warm weather. It will also adjust its product mix and reset the shops. The group plans to turn some of the shops into DKI's brand stores.

Morris Goldfarb points out that the group's retail partners are looking for new products of DKI's brand.

Consumer demand for the group's authorized brands Calvin Klein and Karl Lagerfeld increased. The group said that because the brand's sales in North America reached $1 billion, coupled with the development of international regional business, DKI's business will strengthen consumer's dependence on the group, and DKI's brands such as Messi's department store and Nordstrom.

The core business brand.

According to the world clothing and shoe net, in the past few years, G-III group has successfully pformed its diversification strategy. At present, the group is looking for various market opportunities to expand.

The group said that the scale and diversification of DKI would help to increase its portfolio in international fashion brands.

Last June, KarlLagerfeld entered into partnership with G-III group and set up a joint venture aimed at re entering the US market and expanding its brand business.

G-III group is one of the largest clothing and garment producers and importers in the United States. Its headquarters is in New York. Founded in 1956, it started with European technology and soon became the world's top designer and manufacturer of high quality sportswear, bags and so on.

The group now has more than 25 departments, and owns Vilebrequin, Andrew Marc, Marc NewYork, G.H.Bass and Wilsons Leather brand. Its business is mainly carried out under a series of authorization, including Calvin Klein and PVH of PVH group, as well as,

More interesting reports, please pay attention to the world clothing shoes and hats net.