Orlando, FL 12/8/11 (StreetBeat) -- Clothing and accessories manufacturer G-III Apparel Group Ltd. (Nasdaq:GIII) said Wednesday that its profit edged higher in its fiscal third quarter, aided by stronger sales. The results beat Wall Street expectations and its shares jumped more than 21percent in aftermarket trading.The company reported net income of $43.6 million for the three months ended Oct. 31. That compares with net income of $42.7 million a year earlier. On a per-share basis, the company earned $2.16, unchanged from the prior-year quarter. Revenue grew to 13 percent to $510 million from $450 million in the third quarter last year. Analysts' consensus forecast called for earnings of $2.12 on $497.5 million in revenue, according to FactSet.
Management noted that challenging market conditions led the company to ramp up promotions during the quarter, which led to higher costs and lower profit margins. "We expect these trends to continue to impact us in the fourth quarter," said Morris Goldfarb, G-III's chairman and chief executive.
On the bright side, the company expects to see a positive impact next year from several growth initiatives, including the development of its handbag and luggage business, the addition of Kensie sportswear and the expansion of its license with the NFL.
In addition, the company said has reached a licensing deal with clothing maker Calvin Klein Inc. that includes rights to open Calvin Klein Performance stores in the U.S., China and elsewhere.
G-III Apparel lowered its earnings per share outlook for the year ending Jan. 31 to a range of $2.50 to $2.60, down from an earlier estimate of earnings per share between $3.05 and $3.15. The company expects revenue will be $1.25 billion.
Analysts are anticipating earnings of $2.78 per share on $1.23 billion in revenue.
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