• Q2 profit down 16.5% to $3.3m
  • Sales up 9.4% to $251.5m
  • FY sales lifted to $1.41bn

Clothing manufacturer G-III Apparel Group has today (5 September) raised its full-year guidance, despite posting a 16.5% decline in second-quarter net profit.

Net income slipped to $1.4m during the quarter ended 31 July, compared to $1.6m the same period last year. The company attributed the decline to costs related to the acquisition of men's luxury swimwear brand Vilebrequin last month. 

Operating profit fell 15.5% to $3.3m, while net sales increased 9.4% to $251.5m.

CEO and chairman Morris Goldfarb said: "This was an excellent second quarter. We have exceeded our short-term financial goals, built an order book that supports our annual plan, and completed the acquisition of a powerful, global brand in the men's luxury market.

"This combination of financial, operational and strategic progress, along with a strong balance sheet that supports further business development, gives us confidence that we are well positioned to drive superior value to our shareholders both now and well into the future."

The company said it expects net income per diluted share to range from $2.68 to $2.78, compared to previous guidance of $2.62 to $2.72. Net sales are forecast to be $1.41bn, compared to earlier guidance of $1.35bn.