G-III Apparel shares tumble as earnings miss, company lowers outlook

G-III Apparel Group Ltd. shares tumbled 13% in premarket trade Tuesday, after the company missed second-quarter earnings estimates and lowered their outlook for the full year. The owner of brands including Calvin Klein, Tommy Hilfiger and Karl Lagerfeld, said it had a net loss of $1.3 million, or 3 cents a share, in the quarter, after a profit of $12.5 million or 27 cents a share, in the year-earlier period. Earnings were hurt by fees stemming from the company's planned acquisition of Donna Karan. Sales fell to $442.3 million from $473.9 million. The FactSet consensus was for EPS of 17 cents a share on sales of $485 million. "While we have revised our short-term expectations to reflect external challenges in outerwear and in the outlet center environment, we are as confident as ever in our ability to grow revenues and increase our profitability over the next few years," Chief Executive Morris Goldfarb said in a statement. The company is now expecting full-year EPS of $2.16 to $2.26, down from earlier guidance of $2.55 to $2.65. Sales are expected to total $2.48 billion, down from prior guidance of $2.56 billion. Shares are down 6% in the year through Monday, while the S&P 500 has gained about 7%.

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