Shares of Donna Karan brand owner G-III Apparel soared by more than 12 percent on Monday after chief executive Morris Goldfarb said sales of work attire and dresses are getting stronger “with each passing week.”
Investors sent the stock up by more than $35 a share early on Monday following Goldfarb’s bullish comments in conjunction with G-III’s fiscal first quarter earnings report.
“We believe these trends provide a good indication for the remainder of the year and give us confidence that we and our industry are well on our way to recovery,” Goldfarb said in a statement. “We are well positioned to capitalize on consumer demand as the year progresses and are optimistic about this fiscal year.”
Other apparel companies have also noted the trend away from casual apparel that dominated the pandemic. As far back as February, retailers noticed consumers starting to branching out again by buying dresses, button-down shirts and other going-out clothing .
G-III’s sales grew by 28 percent to $520 million in the quarter ended April 30 while net income was $26.3 compared with a $39.2 million loss a year ago, the company reported.
For the full fiscal year, G-III is anticipating revenues of about $2.57 billion, compared with $2.06 billion in 2020.
G-III bought DKNY and Donna Karan from LVMH in 2016. Known for her “seven easy pieces” for working women, Karan stepped away from her eponymous, 37-year-old brand a number of years ago, but it remains popular and is sold in Nordstrom, Bloomingdales, Saks Fifth Avenue and other retailers.
G-III also holds licenses for Calvin Klein and Karl Lagerfeld, Kenneth Cole, Vince Camuto, Tommy Hilfiger and other designers.
“As the world reopens, we are in a strong financial position, which we believe will allow us to fund our growth domestically and internationally and enable us to take advantage of opportunities that arise,” Goldfarb said in a statement.