By Dhirendra Tripathi
Investing.com – G-III Apparel (NASDAQ:GIII) shares rose nearly 12% Monday as the company returned to profitability and gave a guidance for the full year after skipping it last time.
The company rode the trend of people opting for casual clothing for work-from-home lifestyles and swung back to a net income of $26.3 million, or 53 cents per diluted share in the first quarter ended April 30. It had a net loss of $39.3 million, or 82 cents per share in the prior year’s quarter.
“With each passing week, sales for broader lifestyle apparel, such as sportswear, wear-to-work attire and dresses, are accelerating and our overall business in North America is getting stronger,” said Morris Goldfarb, G-III’s chairman and chief executive officer, in a note.
For the fiscal ending January 31, 2022, the company is forecasting net sales of approximately $2.57 billion which compares to $2.06 billion last year.
Net income for fiscal 2022 is expected to be between $125 million and $135 million, or between $2.60 and $2.70 per diluted share. This compares to net income of $23.5 million, or 48 cents per diluted share, last year.
Net sales for the first quarter ended April 30 increased 28.3% to $519.9 million from $405.1 million in the prior year’s quarter.
The company has completed the restructuring of its retail operations segment and has permanently closed the loss-making Wilsons Leather and G.H. Bass stores.