Why Shares of G-iii Apparel Group Plunged Today
Shares of G-iii Apparel Group (NASDAQ: GIII) were plunging after the company best known for licensing brands like Calvin Klein, DKNY, and Tommy Hilfiger missed profit estimates in its third-quarter earnings report and slashed its guidance for the year. It also said it was losing the Calvin Klein and Hilfiger licenses.
As a result, the stock was down 43.3% as of 12:36 p.m. ET.
Revenue rose 6% to $1.08 billion in the quarter, which topped the consensus at $1.06 billion, but the company ran into inventory management problems as, like other retailers, it stocked up on merchandise in anticipation of supply chain delays that never materialized. The company finished the quarter with double the inventory of a year ago, at $900 million.
Source Fool.com
