G-III Apparel raises FY18 adjusted EPS view to $1.28-$1.38 from $1.20-$1.30
Consensus $1.27. The company increased its prior guidance for the full fiscal year ending January 31, 2018. The company is now forecasting revenues of approximately $2.8B and net income between $56M and $60less than or between $1.11 and $1.21 per diluted share. The company previously forecasted net sales of $2.76B and net income between $52M and $57M or between $1.04 and $1.14 per diluted share. The company's forecast includes Donna Karan-related transitional expenses of approximately $8 million and non-cash imputed interest expense of approximately $6M. On an adjusted basis, excluding transitional and imputed interest expenses, the Company now anticipates non-GAAP net income of between approximately $64M and $69M, or between $1.28 and $1.38 per diluted share. The Company's previous forecast was for non-GAAP net income of between approximately $60 and $65M, or between $1.20 and $1.30 per diluted share. The forecasted GAAP and non-GAAP results reflect expected operating losses of approximately $23M and additional interest expense of approximately $23M, equal to an aggregate of 57c per diluted share, associated with the Donna Karan business. The per share forecasts above include the impact of the issuance of approximately 2.6M shares of new G-III common stock to the seller of DKI on December 1, 2016. The company is now forecasting projected full-year adjusted EBITDA for fiscal 2018 between $180M and $188M compared to adjusted EBITDA of $148.1M in fiscal 2017 and compared to its previous forecast of adjusted EBITDA of between $178M and $186M. This adjusted EBITDA guidance includes a forecasted full-year operating loss of approximately $12M associated with the Donna Karan business.