G-III Apparel Group (NASDAQ:GIII) shares climbed almost 8% premarket on the back of its latest earnings release, which topped profit expectations.
The company reported Q3 EPS of $2.78, $0.73 better than the analyst estimate of $2.05. Revenue for the quarter came in at $1.07 billion, below the consensus estimate of $1.13 billion and slightly lower than the $1.08 billion reported during the same period last year.
The company's positive results were driven by strength across its wholesale segment, while the company also noted its "prudent inventory management and our financial discipline."
"Our solid year-to-date results showcase G-III’s ability to successfully navigate challenging market conditions and gives us the confidence to raise our full-year earnings per share guidance," said Morris Goldfarb, G-III’s Chairman and Chief Executive Officer. "Over the last twelve months, we have made significant progress accelerating our strategic priorities."
Looking ahead, the company sees its FY2024 EPS between $3.90 and $4, versus the consensus of $3.24, with revenue for the period at ~$3.15 billion, versus the consensus of $3.297 billion.
Reacting to the results, analysts at Wells Fargo said the company is executing in a tough environment.
"Despite unfavorable weather and checks indicating softness in the outerwear category, GIII was able to over-deliver in 3Q. While revs came in ~6% below St. (not surprising given tight retailer orderbooks and open-to-buy $s remaining scarce), GIII handily beat on GM (+360bps vs. St.) and EBIT % (+530bps vs. St.). All in, EPS of $2.78 was 35% higher vs. St.'s $2.06, highlighting GIII's ability to 'control the controllables,'" said the analysts, who maintained an Equal Weight rating and $25 price target on the stock.