Apparel company G-III Apparel Group (NASDAQ: GIII) soared in pre-market trading on Thursday after a big earnings beat in the second quarter and a multi-year licensing deal for its Champion brand. The company reported adjusted earnings of $0.40 per share in Q2 while analysts were expecting earnings of $0.01 per share.
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G-III’s Q2 revenues increased 9% to $659.8 million, surpassing Street estimates of $591.39 million. Morris Goldfarb, G-III’s Chairman and CEO elaborated on the deal for its Champion brand, “We are pleased to announce our newest license agreement with HanesBrands to produce an outerwear collection for the Champion brand. Champion is a well-recognized iconic American brand. This license aligns with G-III’s core competencies in outerwear and will fit seamlessly into our well-developed outerwear divisions.”
Looking forward, the company raised its guidance for FY24 and now expects net sales of around $3.3 billion while adjusted earnings are likely to be between $3.20 and $3.30 per share. In Q3, GIII has projected revenues of $1.13 billion while adjusted earnings are expected to be between $2.03 and $2.13 per diluted share.
Analysts are sidelined about GIII stock with a Hold consensus rating based on one Buy and five Holds.
