Shares of G-III Apparel Group Ltd. on Wednesday dropped 21% to $16.99 in after-hours trading after the manufacturer and designer of clothes posted a material decline in profit for the fiscal third quarter and guided for lower-than-expected full-year sales.
The company, which is extending most of its licensing agreements in the U.S. and Canada with PVH Corp.’s Calvin Klein and Tommy Hilfiger brands, posted a net profit for the third quarter of $61.1 million, or $1.26 a share.
This compares with profit of $106.7 million, or $2.16 a share, for the year-earlier period.
Revenue rose 5.9% to $1.08 billion, ahead of market expectations of $1.07 billion in the quarter, according to FactSet.
For the full-year, the company guided for sales of $3.15 billion, up from reported sales of $2.77 billion a year earlier. However, the company’s outlook missed market expectations for sales of $3.13 billion, according to FactSet.