• Q3 net income up 2% to US$43.6m
  • Net sales rise 13% to $510m
  • Margins hit by higher costs, promotions

G-III Apparel Group lowered its full-year profit forecasts after third quarter margins were dented by higher product costs and increased levels of promotion.

The US business now expects to record full-year net sales of $1.25bn and net income of $50.8-52.8m, well down on earlier predictions.

“We achieved our sales objectives for the quarter, but found it necessary to utilise promotional strategies, given the continued challenging market and weather conditions,” said G-III chairman and CEO Morris Goldfarb.

“In addition, we experienced higher product costs than last year.”

Goldfarb said he expected those trends to continue to have an impact in the fourth quarter.

Separately, G-III Apparel Group also said it has inked a deal with Calvin Klein Inc to open Calvin Klein Performance stores and shop in shops selling women's apparel in the US and China.